Mike's Minute: Paddock to Pantry shows competitive settings are working

Hss Paddock to Pantry just confirmed what most of us who think the whole “blow up the super market” game is stupid …were in fact right?

The most open display of pandering to the lowest common denominator I have seen in years is virtually every party promising to take you to the promised isle of cheap food, and the only one left with common sense and an adult approach is ACT, who see this for what it is.

Paddock to Pantry is an NZ operation that has largely been on line - they have some bricks and mortar operations but are now on a major expansion path, with $25 million  to be spent over the next 5 years.

Their sales are up almost 200 percent in a year, and they are aiming to be the 3rd biggest player in the market.

Let me quote them: "changes to supermarket competition settings provided the foundation for independent operators to compete with the big chains."

"The ground work has already been done through the changes to competition settings. Those reforms have opened the door for independent operators like us to compete and we have demonstrated that the model works."

I am not sure what else you need to hear. 

The argument from those of us who have kept our heads on this matter is comparatively simple -right or wrong, a market of 5 million spread over  tricky territory makes a lot of players in a high volume business hard work.

That’s why Aldi isn't here, and that’s why even though Aldi is in Australia, they still bitch and moan about prices and lack of competition.

So desperate to placate those who still don’t know why butter is costly, an increasing number of alarmist ideas are rolled out in an election campaign designed to get your vote but ultimately to let you down when you wake up to the fact its all a fultile con.

Paddock to Pantry is aiming to set up in largely provincial areas with lack of competition.

Ask yourself why - this is the market working, this is the gaps being filled, this is a local operator who is backing themselves  to play in a real life free market. The free market is working, they are proof.

And you might - if you're a local - want to support them when they arrive. It will be way more productive that waiting for Willis or Hipkins or Swarbrick to get you cheaper oranges.

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