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France-based trade publication Lineaires has reported on a number of initiatives being proposed by Carrefour as the retailer looks to support the profitability of its hypermarkets in its home market.

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We look at how Carrefour is investing in its organic ranges and offer in France and Poland as it rolls out its Act for Food initiative.

France: co-creates organic crowdfunding project

Carrefour France has joined with other food companies to launch ‘MiiMOSA Transition’, a crowdfunding project that will support farmers as they switch to organic production methods. Food group Herta and cooperatives d’Aucy and Les Paysans de Rougeline are also involved in the project. They will help producers adapt their farming, livestock rearing and crop-growing practices.

The partners will initially help fund €10m (US$11.4m) worth of projects. The aim of project is to reach €100m (US$114m) within four years, after other partners have joined.

The crowdfunding project is in line with Carrefour’s Act for Food initiative. The retailer has also adopted blockchain technology to trace chicken, eggs and tomatoes. It hopes to generate €5bn in organic food sales by 2022, after achieving €1.8bn in 2018.

Poland: launches ‘Little Farmer’ zones for children

Meanwhile in Poland, Carrefour has launched ‘Little Farmer’ zones in select stores, which offer organic products for children. The product range comprises over 60 SKUS including cereals, desserts, pasta, snacks and sweets. There are also gluten-free and products for diabetics in the range.

The ‘Little Farmer’ zones are part of Carrefour’s ‘Healthy Shelf’ project and the Act for Food initiative. They aim to bring together all the retailer’s healthy, organic products for children in one area. Carrefour hopes to expand its Carrefour BIO and vegan range and discontinue caged eggs by 2025.

The zones are initially available in Carrefour stores in the Arkadia shopping centre, Reduta, Targówek and Galeria Wilenska in Warsaw, as well as in selected stores in Kraków, Gdansk and Torun. The retailer hopes to roll out the project to areas in Wroclaw and extend the product range it covers, although without giving a timeframe.

For subscribers wanting more on how retailers are executing organic in-store, see our insight presentation.

25 leading consumer product companies have unveiled a reusable packaging subscription service, along with TerraCycle, an innovative waste management company. The service, called Loop, will launch in Paris and New York in Spring 2019.

Coalition of consumer product companies

International recycling company TerraCycle has partnered with a group of leading consumer product companies including Unilever, Procter & Gamble, Nestle and PepsiCo, to launch a new shopping system, Loop. The service has been designed to reduce reliance on single use packaging, and offer a convenient solution to customers, while maintaining environmental benefits.

Loop was founded at the World Economic Forum, with the aim to offer a zero-waste option for popular consumer products, whilst also maintaining affordability and improving convenience. Additional partners include food retailer Carrefour, the founding retailer, and UK retailer Tesco, that will pilot Loop in the UK later on in the year. Logistics and transportation company UPS and sustainable resource management company Suez are also involved in the initiative.

Life Cycle Assessments have verified the environmental benefits of Loop’s durable packaging under usage pattern assumptions that will be further tested in trials set to launch in Spring 2019 in France and north-eastern US. Additional markets, including the UK, are expected to launch across 2019 and 2020.

Tom Szaky, TerraCycle’s CEO, commented: “As a response to the global challenge in managing waste and the opportunity to improve consumers’ experience, a group of committed global brands, retailers, infrastructure companies, along with the World Economic Forum have come together to create a new way to more responsibly consume products. Loop will not just eliminate the idea of packaging waste, but greatly improve the product experience and the convenience in how we shop. Through Loop, consumers can now responsibly consume products in specially-designed durable, reusable or fully recyclable packaging made from materials like alloys, glass and engineered plastics. When a consumer returns the packaging, it is refilled, or the content is reused or recycled through ground-breaking technology”.

Source: Loop

How does the service work?

The waste free shopping service allows consumers to consume products in brand-specific durable packaging that is collected, cleaned, refilled and reused.

  1. Consumers will place their order on the Loop websites or Loop partner retailer’s websites
  2. Consumers will receive their durable products in Loop’s shipping tote, eliminating the need for single-use shipping materials such as cardboard boxes
  3. After consumers finish their products, they are able to place the empty package into their Loop Totes, and Loop will pick up directly from their home
  4. The packaging is then cleaned using a method developed by Loop’s team of scientists for safe reuse
  5. Loop then replaces products as needed and returned the refilled shipping totes to the consumer. Recoverable used products including diapers, pads, razors, or brush parts will be recovered to be reused or recycled

Source: Loop

Want to know more?

"Doing good is good business" is one of IGD's five global trends for 2019: Retail Analysis subscribers can read our latest report here.

Packaging is an increasing focus, for example, Amazon’s push for manufacturers to meet its frustration free standards with its Frustration-free packaging programme. For more information, click here.

Amazon has launched an in-house fulfilment and delivery network in Brazil. Till now Amazon in Brazil has predominantly sold only books and acted as a marketplace for third parties selling electronic and household items. 

Fulfilling products across 11 categories

From Tuesday 22 January 2019, the business has stocked and fulfilled products itself. Amazon is offering products across 11 categories, from over 800 suppliers. Its online sales platform now stocks over 320,000 products, of which 200,000 are books. Amazon plans to expand this offering.

Online channel becoming increasingly competitive in Brazil

Amazon expanding its ecommerce offering will be a cause of concern for Brazil’s current ecommerce market leader MercadoLibre, as well as Carrefour and Casino. Our recent research piece on online in Latin America highlights the rising demand for ecommerce in the region, as internet penetration and smartphone adoption rates are both rapidly growing.

Although these are early stages for Amazon developing its ecommerce offer in Brazil, the business could apply learnings from its operations in Mexico, where the channel has been a big success. In January 2019 Amazon Mexico extended its online offer to include grocery. If this proves a success, Amazon could replicate this in Brazil in the future.

Carrefour’s latest results demonstrate increased consumer interest in the online channel

Carrefour Brazil announced a very strong ecommerce performance in its preliminary Q4 results. It said its gross merchandise volume (GMV) heavily outperformed the industry in Q4, with total sales up by 110%.

Carrefour’s own sales for Q4 were up 83% year-on-year (YoY). This was attributed to a strong Black Friday event and very strong sales in December. Marketplace sales for Q4 represented just 19% of this, which illustrates how Amazon could continue to expand on fulfilling products itself.

We have published a new piece of research which explores the five key trends set to shape the Latin American grocery market in 2019 and beyond. One of these trends centres on growth in the online channel. Subscribers can find the research here.



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