Foodstuffs is rejecting claims of "cartel conduct"

The Commerce Commission is launching legal action against Foodstuffs North Island and Gilmours Wholesale, alleging breaches of Commerce and Grocery Competition Acts.

The competition watchdog's accusing the companies of persuading a major supplier to re-route business to a major hospitality customer, through them.

Foodstuffs North Island says its committed to complying with all regulatory obligations, and co-operated fully with the Commission throughout the investigation.

It strongly denies any unlawful conduct.