diff --git a/custom_components/shopping_list_manager/data/category_loader.py b/custom_components/shopping_list_manager/data/category_loader.py
index 8b13789..65c7f8f 100644
--- a/custom_components/shopping_list_manager/data/category_loader.py
+++ b/custom_components/shopping_list_manager/data/category_loader.py
@@ -1 +1,94 @@
+"""Category loader utility."""
+import json
+import logging
+import os
+from typing import List, Dict, Any
 
+_LOGGER = logging.getLogger(__name__)
+
+
+def load_categories(component_path: str, country_code: str = None) -> List[Dict[str, Any]]:
+    """Load categories from JSON file.
+    
+    Args:
+        component_path: Path to the component directory
+        country_code: Country code from HA config (e.g., 'NZ', 'AU', 'US')
+                     If None, loads default categories.json
+    
+    Returns:
+        List of category dictionaries
+    """
+    # Try country-specific file first if country_code provided
+    if country_code:
+        country_file = os.path.join(
+            component_path, "data", f"categories_{country_code.lower()}.json"
+        )
+        if os.path.exists(country_file):
+            categories_file = country_file
+            _LOGGER.debug("Using country-specific categories: %s", country_code)
+        else:
+            _LOGGER.debug(
+                "No country-specific categories found for %s, using default",
+                country_code
+            )
+            categories_file = os.path.join(component_path, "data", "categories.json")
+    else:
+        categories_file = os.path.join(component_path, "data", "categories.json")
+    
+    try:
+        with open(categories_file, "r", encoding="utf-8") as f:
+            data = json.load(f)
+            
+        _LOGGER.info(
+            "Loaded categories version %s for region %s",
+            data.get("version", "unknown"),
+            data.get("region", "default")
+        )
+        
+        return data.get("categories", [])
+        
+    except FileNotFoundError:
+        _LOGGER.error("Categories file not found: %s", categories_file)
+        return _get_fallback_categories()
+    except json.JSONDecodeError as err:
+        _LOGGER.error("Failed to parse categories file: %s", err)
+        return _get_fallback_categories()
+    except Exception as err:
+        _LOGGER.error("Unexpected error loading categories: %s", err)
+        return _get_fallback_categories()
+
+
+def _get_fallback_categories() -> List[Dict[str, Any]]:
+    """Get minimal fallback categories if file loading fails.
+    
+    Returns:
+        List of basic category dictionaries
+    """
+    _LOGGER.warning("Using fallback categories")
+    
+    return [
+        {
+            "id": "produce",
+            "name": "Produce",
+            "icon": "mdi:fruit-cherries",
+            "color": "#4CAF50",
+            "sort_order": 1,
+            "system": True
+        },
+        {
+            "id": "dairy",
+            "name": "Dairy",
+            "icon": "mdi:cheese",
+            "color": "#FFC107",
+            "sort_order": 2,
+            "system": True
+        },
+        {
+            "id": "other",
+            "name": "Other",
+            "icon": "mdi:dots-horizontal",
+            "color": "#9E9E9E",
+            "sort_order": 99,
+            "system": True
+        }
+    ]