New Zealand Wholesale Market Analysis
Professional analysis of New Zealand's wholesale distribution industry — market structure, major players, competitive landscape, and digital transformation
Overview
New Zealand's wholesale distribution industry is a significant pillar of the national economy, contributing approximately NZ$14.5 billion to GDP (March 2024). The sector operates within a small but highly developed market of ~5.2 million people, characterized by geographic remoteness, concentrated market structures, and increasing regulatory scrutiny — particularly in grocery wholesale, which functions as a duopoly controlled by Foodstuffs and Woolworths.
This document provides a professional analysis of the NZ wholesale market's structure, major players, competitive dynamics, technology landscape, and strategic outlook.
Market Size & Economic Contribution
| Indicator | Value | Source |
|---|---|---|
| Wholesale trade GDP contribution | NZ$14.5 billion (March 2024) | Stats NZ |
| Grocery sector total value | NZ$25 billion (2024) | Commerce Commission |
| Supermarket industry revenue | NZ$27.3 billion (2025-26) | IBISWorld |
| NZ total GDP | US$260 billion (2024) | World Bank |
| Wholesale trade quarterly growth | +1.4% (Q3 2025) | Stats NZ |
| Service sector share of GDP | 73% | Stats NZ |
The wholesale trade sector rebounded in 2025 after a period of economic stagnation and contraction (2022–2024) driven by inflation, interest rate rises, and suppressed consumer spending. GDP grew 0.8% in Q1 2025 and 1.1% in Q3 2025, with Treasury projecting ~3% annual growth over the next three years.
Market Structure
Grocery Wholesale — The Duopoly
New Zealand's grocery wholesale market is dominated by two players who together control ~90% market share:
| Player | Market Share | Revenue (FY2024) | Brands |
|---|---|---|---|
| Foodstuffs NZ | ~45% of grocery market | NZ$9.2B (North Island alone) | PAK'nSAVE, New World, Four Square, Gilmours, Trents |
| Woolworths NZ | ~35% of grocery market | NZ$8.17B (food sales) | Countdown/Woolworths, NZ Grocery Wholesalers (NZGW) |
This concentration has drawn significant regulatory attention. The Commerce Commission found in 2022 that supermarkets earned NZ$430 million per year in excess profits (2015–2019), and the Grocery Industry Competition Act (GICA) was enacted in response.
Foodservice Wholesale — More Competitive
The foodservice distribution segment is more fragmented, with multiple national and regional players competing on range, service, and specialization:
| Player | Type | Scale | Ownership |
|---|---|---|---|
| Bidfood NZ | National foodservice distributor | 20,000+ products, 30,000+ customers | Bidcorp (South Africa, global) |
| Gilmours | Cash & carry + delivery | 12,000+ products, 8 stores + delivery | Foodstuffs North Island (cooperative) |
| Trents Wholesale | Foodservice wholesale (South Island) | 18,000+ products, 5 distribution centres | Foodstuffs South Island (cooperative) |
| Service Foods | National foodservice distributor | 14,000+ products, 15 branches | Private, family-owned (NZ) |
| Moore Wilson's | Cash & carry + fresh market | Multi-category, 4 stores | Private, family-owned (NZ) |
| Toops Wholesale | Regional foodservice wholesale | Multi-location | Independent (NZ) |
Major Players — Detailed Analysis
Bidfood New Zealand
The largest standalone foodservice wholesaler in NZ.
- Parent Company: Bidcorp Group (listed on JSE, operations in 35+ countries)
- Revenue: ~NZ$5 billion (estimated, 2025)
- Employees: 2,500+
- Customers: 30,000+ chefs and businesses nationwide
- Products: 20,000+ from 3,000+ NZ and international suppliers
- Infrastructure: 17 foodservice distribution centres, 5 Bidfresh locations, 2 butchery/processing facilities
Key Strengths
| Strength | Detail |
|---|---|
| National coverage | 24 branches across North and South Islands with next-day delivery |
| Decentralised model | Each distribution centre controls its own product range and pricing — local responsiveness with national scale |
| Fresh specialization | Dedicated Bidfresh divisions for produce, meat, and seafood in 5 major cities |
| Global sourcing | Access to Bidcorp's international supplier network across 35+ countries |
| Digital platform | myBidfood online ordering portal with customer-specific pricing and order history |
| Sustainability | CarbonCloud partnership, electric truck deployment |
Strategic Position
Bidfood's decentralised structure is a genuine differentiator in NZ. Unlike centralized competitors, each branch operates semi-autonomously — supporting local suppliers while leveraging Bidcorp's global purchasing power. This model allows them to serve both large hospitality chains and small independent operators with tailored range and pricing.
Foodstuffs New Zealand (Gilmours & Trents)
NZ's largest grocery cooperative, with dedicated wholesale arms for foodservice.
Foodstuffs operates as two cooperatives — Foodstuffs North Island and Foodstuffs South Island — with a merger approved in June 2024 to consolidate into one national entity.
- Combined Revenue: NZ$9.2B+ (North Island, FY2024) + South Island
- Retail Brands: PAK'nSAVE (46), New World (103), Four Square (163)
- Wholesale Brands: Gilmours (North Island), Trents (South Island)
- Ownership: Cooperative (owned by independent grocery store operators)
Gilmours (North Island)
| Attribute | Detail |
|---|---|
| Model | Cash & carry stores + delivery |
| Stores | 8 Cash 'n Carry locations + 10 wholesale distribution points |
| Products | 12,000+ including Gilmours House Brand and liquor |
| Target Customers | Hospitality, clubs, not-for-profits, charities, commercial organizations |
| Differentiator | Physical store experience combined with wholesale delivery; part of Foodstuffs buying power |
Trents Wholesale (South Island)
| Attribute | Detail |
|---|---|
| Model | Foodservice delivery + Cash 'n Carry |
| Founded | 2000 |
| Distribution Centres | Nelson, Christchurch, Dunedin, Alexandra, Invercargill |
| Cash & Carry Branches | Nelson, Christchurch, Dunedin, Invercargill |
| Products | 18,000+ (grocery, chilled, frozen, butchery, produce, liquor, GM, hygiene) |
| Differentiator | Only South Island foodservice wholesaler offering Airpoints Dollars; Foodstuffs transport network |
Strategic Position
The Foodstuffs cooperative model gives Gilmours and Trents significant buying power advantage — suppliers negotiate at the Foodstuffs group level, which represents 45% of the NZ grocery market. The pending North/South Island merger will create a single national entity, potentially enabling unified wholesale operations and further scale economies.
However, the cooperative structure also creates complexity: Foodstuffs' primary focus remains its retail grocery business (PAK'nSAVE, New World), and wholesale foodservice is a secondary revenue stream.
Service Foods
NZ's largest privately owned foodservice distributor.
- Ownership: Family-owned, 100% NZ-operated
- Managing Director: Aneil Balar
- Revenue: ~NZ$60.8 million (2025 estimate)
- Employees: 800+
- Branches: 15 nationwide
- Fleet: 220+ temperature-controlled trucks
- Products: 14,000+ (4,000+ directly imported from 20+ countries, 8,000+ locally sourced)
Divisions
| Division | Focus |
|---|---|
| Butchery | Fresh and processed meats |
| Produce | Fruits, vegetables, salads |
| Seafood | Fresh and frozen seafood |
| Essentials | Grocery, chilled, frozen, dry goods |
Exclusive Brands
Service Foods differentiates through proprietary house brands — Balars Wholefoods, Leonard's, Wild Acre Farms, First Catch, Essentials, The Dairy Shed, Farm Fresh, and Raw Earth. They control the entire production process from farm to plate, offering quality consistency that pure distributors cannot match.
Strategic Position
Service Foods occupies a valuable niche as the largest independent, family-owned foodservice distributor. Its vertically integrated brand strategy (owning house brands from production to distribution) creates margin advantages and product exclusivity. The 15-branch nationwide network with 220+ temperature-controlled trucks gives it credible national coverage while maintaining the agility and service responsiveness of a family-run business.
Key vulnerability: smaller scale vs. Bidfood and Foodstuffs limits negotiating leverage with major suppliers.
Woolworths NZ / NZ Grocery Wholesalers (NZGW)
Regulatory-driven wholesale entrant.
- Parent Company: Woolworths Group (ASX-listed, Australia)
- NZ Food Revenue: NZ$8.17 billion (FY2024)
- NZGW Wholesale Sales: NZ$11.5 million (year to Feb 2025) — less than 0.03% of retail grocery sales
- NZGW Established: August 2022, in response to Commerce Commission market study
Context
NZGW was created specifically to comply with the Grocery Industry Competition Act's wholesale supply obligations. It provides wholesale access to smaller retailers through:
- Wholesale supply agreements via distribution centres
- Wholesale cards for use in selected Woolworths stores (for smaller retailers needing single units)
Strategic Position
NZGW is, candidly, a compliance exercise at this stage — not a genuine competitive wholesale business. With NZ$11.5 million in annual sales against NZ$8.17 billion in retail food revenue, wholesale represents a rounding error. The Commerce Commission has noted that wholesale pricing is "frequently uncompetitive" and the regime is "not having a material impact."
The Commerce Commission's June 2025 Preliminary Findings stated that promotional funding (~NZ$5 billion in rebates/discounts from suppliers) makes it structurally difficult for NZGW wholesale prices to enable competitive retail pricing for independent retailers.
Moore Wilson's
Wellington's iconic wholesale-retail hybrid.
- Founded: 1918
- Ownership: Family-owned, 100+ years
- Locations: 4 stores in the Wellington region (including flagship Tory Street)
- Model: Combined wholesale (trade/foodservice) and fresh market (retail/gourmet)
Strategic Position
Moore Wilson's occupies a unique market position — part wholesale supplier to Wellington's hospitality trade, part premium food destination for home cooks. This hybrid model creates higher foot traffic and brand loyalty than pure wholesale, but limits geographic expansion. With 100+ years of heritage and deep community ties, Moore Wilson's is Wellington-centric and not a national competitor — but within its region, it's a powerful brand with exceptional customer loyalty.
Toops Wholesale
Independent regional foodservice wholesaler.
- Founded: 1976 (Taranaki)
- Employees: 50–99
- Revenue: NZ$1–5 million (estimated)
- Locations: Wellington (Ngauranga, Silverstream), New Plymouth, Napier
- Target Customers: Hospitality — cafes, bars, restaurants, hotels, motels
Strategic Position
Toops represents the long tail of NZ wholesale — small, independent, regional operators serving local hospitality businesses. Their survival depends on personal relationships, local knowledge, and service flexibility that larger players cannot easily replicate. However, they face margin pressure from scale disadvantages and risk being squeezed as national players expand.
Competitive Landscape Matrix
| Dimension | Bidfood | Gilmours/Trents | Service Foods | Woolworths/NZGW | Moore Wilson's | Toops |
|---|---|---|---|---|---|---|
| National Coverage | ★★★★★ | ★★★★☆ | ★★★★☆ | ★★★★★ | ★☆☆☆☆ | ★★☆☆☆ |
| Product Range | ★★★★★ | ★★★★☆ | ★★★★☆ | ★★★★★ | ★★★☆☆ | ★★★☆☆ |
| Buying Power | ★★★★★ | ★★★★★ | ★★★☆☆ | ★★★★★ | ★★☆☆☆ | ★☆☆☆☆ |
| Fresh/Specialty | ★★★★☆ | ★★★☆☆ | ★★★★★ | ★★☆☆☆ | ★★★★★ | ★★★☆☆ |
| Digital Platform | ★★★★☆ | ★★★☆☆ | ★★★☆☆ | ★★★★☆ | ★★☆☆☆ | ★☆☆☆☆ |
| Local Responsiveness | ★★★★★ | ★★★★☆ | ★★★★☆ | ★★☆☆☆ | ★★★★★ | ★★★★★ |
| House Brands | ★★★☆☆ | ★★★☆☆ | ★★★★★ | ★★★★★ | ★★☆☆☆ | ★☆☆☆☆ |
| Ownership | Global (Bidcorp) | Cooperative (NZ) | Private (NZ) | Corporate (AU) | Private (NZ) | Independent (NZ) |
Regulatory Landscape
New Zealand's wholesale market is under active regulatory intervention, driven by the Commerce Commission's findings on grocery market concentration.
Key Regulatory Milestones
| Date | Event |
|---|---|
| March 2022 | Commerce Commission publishes grocery market study — finds NZ$430M/year excess profits |
| September 2023 | Grocery Supply Code comes into force |
| August 2024 | Commerce Commission commences Wholesale Supply Inquiry |
| June 2024 | Foodstuffs North/South merger approved by members |
| June 2025 | Preliminary Findings: wholesale supply regime "not having a material impact" |
| November 2025 | Government introduces Fast-track Approvals Bill to lower barriers for new supermarket chains |
Implications for Wholesale Software
The regulatory environment creates specific software requirements:
| Requirement | Detail |
|---|---|
| Wholesale pricing transparency | Systems must support compliant wholesale pricing, including pass-through of promotional funding |
| Supplier code compliance | CRM and procurement systems must track and enforce Grocery Supply Code obligations |
| Audit readiness | Transaction records, pricing histories, and supplier communications must be auditable |
| Wholesale access systems | NZGW-style portals enabling smaller retailers to access wholesale supply |
| Dispute resolution tracking | Systems to manage and document dispute resolution processes |
Digital Transformation & Technology
Current State
NZ wholesale distributors face a digital divide:
| Segment | Digital Maturity | Characteristics |
|---|---|---|
| Large nationals (Bidfood, Woolworths) | Moderate–High | Online ordering portals, ERP integration, mobile apps |
| Cooperatives (Foodstuffs/Gilmours) | Moderate | E-commerce investment, centralized procurement systems |
| Mid-size independents (Service Foods) | Low–Moderate | Basic online presence, primarily phone/rep-driven ordering |
| Small independents (Toops, regional) | Low | Excel-based operations, manual processes, standalone accounting |
Key Challenges
- Legacy systems: Many distributors grew organically from small specialists and still rely on inadequate tools — Excel, standalone accounting systems, manual data entry
- Geographic remoteness: NZ's remote supply chains are easily disrupted, making accurate forecasting and inventory management critical
- Skills gap: Lack of time and knowledge to evaluate and implement digital solutions
- Cybersecurity concerns: Identified as a key barrier to digital adoption by NZ businesses
Technology Opportunities
| Opportunity | Impact | Applicability |
|---|---|---|
| ERP modernization | Automate order processing, inventory, CRM | All distributors, especially mid-size |
| B2B e-commerce portals | Self-service ordering, reorder, account management | National and mid-size players |
| Demand forecasting (AI/ML) | Reduce stockouts and waste in remote supply chains | High impact for NZ's geographic challenges |
| Route optimization | Critical for cost-effective delivery across NZ's terrain | All delivery-based distributors |
| Cold chain IoT | Temperature monitoring for food safety and compliance | Food distributors (Bidfood, Service Foods) |
| Integration APIs | Connect to customer POS, kitchen management systems | Foodservice distributors |
Government Support
- Digital Boost Alliance: Government-backed program with AWS, Microsoft, Salesforce, Google participation
- Digital Technologies Industry Transformation Plan: MBIE-led initiative targeting SaaS growth
- Potential economic value: Digital transformation could unlock up to NZ$46.6 billion annually by 2030
Key Trends & Strategic Outlook
1. Consolidation Pressure
The Foodstuffs North/South merger signals ongoing consolidation. Smaller independents face increasing margin pressure as national players scale. Expect further M&A activity in the foodservice segment.
2. Regulatory-Driven Wholesale Opening
The Commerce Commission is actively pushing for more competitive wholesale supply. If the current wholesale regime fails to improve (and early signs suggest it will), additional regulation is likely — potentially mandating specific pricing structures or access requirements.
3. Digital Ordering Adoption
COVID-19 accelerated digital adoption across NZ hospitality. Wholesale customers now expect self-service ordering, real-time stock visibility, and mobile-first experiences. Players without strong digital platforms will lose ground.
4. Supply Chain Resilience
NZ's geographic isolation makes supply chain resilience a strategic priority. Distributors investing in demand forecasting, multi-source procurement, and real-time inventory visibility will outperform.
5. Sustainability Requirements
Environmental reporting, electric fleet adoption (Bidfood), and packaging reduction (Foodstuffs South Island plastic declaration) are becoming competitive differentiators, not just compliance exercises.
6. Private Label & House Brand Growth
Cost-of-living pressures are driving customers toward private label. Distributors with strong house brands (Service Foods, Woolworths, Gilmours) are better positioned to capture margin.
Summary: Investment & Software Implications
| Priority | Software Capability | Target Segment |
|---|---|---|
| Critical | B2B e-commerce platform with NZ-specific compliance | All wholesale operators |
| Critical | ERP with real-time inventory and multi-warehouse support | Mid-to-large distributors |
| High | Demand forecasting optimized for remote/seasonal supply chains | Food distributors |
| High | Wholesale pricing engine with regulatory compliance (GICA) | Grocery wholesale |
| High | Route optimization for NZ geography (islands, rural delivery) | All delivery operators |
| Medium | Cold chain monitoring and traceability | Food and pharma distributors |
| Medium | Customer analytics and segmentation | All, especially foodservice |
| Medium | Supplier management and audit compliance | Regulated grocery retailers |
References
- Stats NZ — Retail and Wholesale Trade
- Commerce Commission — Wholesale Supply Inquiry
- Commerce Commission — 2024 Annual Grocery Report
- Foodstuffs NZ — Performance and Reports
- Bidfood NZ — About Us
- Service Foods — About
- Gilmours — About Us
- Trents Wholesale — Company Profile
- NZ Grocery Wholesalers (NZGW)
- US ITA — New Zealand Distribution & Sales Channels
- Acclaim Group — Digital Transformation and ERP for NZ Wholesale
- Statista — NZ Wholesale Trade GDP