Fisher & Paykel Appliances kicks 50-year-old New Zealand distribution regime to touch

Tuesday 30th March 2010

Fisher & Paykel Appliances, New Zealand’s sole whiteware manufacturer, is to replace its exclusive dealership relationship with select retailers and open up its distribution network across the country.

The restricted distribution arrangement dates back to the 1950’s and requires that a select, limited number of retailers had the exclusive rights to sell F&P products. Last year F&P took over the distribution and marketing of the whiteware products of 20% shareholder Haier.

“Fisher & Paykel Appliances has been monitoring this distribution structure for a number of years and believes it is now in the best interests of our end customers and the company to make this change,” managing director and chief executive officer Stuart Broadhurst said.

As required under the current arrangement, a termination notice with the mandatory notice period has been communicated to F&P’s existing retail partners. Procedures are in place to implement a new distribution plan from July 1 with both existing partners and new retail alliances the company said.

“The new distribution plan provides the consumer with increased opportunity to choose from an extensive product range and at a wider selection of retail stores,” he said. “As well it strengthens the company’s potential market base by expanding distribution of Fisher & Paykel products.”

F&P directors expect the new distribution plan’s first year earnings impact to be immaterial.

Businesswire.co.nz

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