Europe: buying alliance developments

Date : 12 October 2020

Jon Wright

Head of Insight - RA EMEA

Following developments in France, Italy, Netherlands and Germany, we round up developments from buying alliance across the region.

Carrefour and Tesco reduce scope of joint private label buying

According to reports in France-based trade publication LSA, following on from a similar step from the Horizon purchasing group, Carrefour and Tesco have committed to limiting the scope of their joint buying of private label products. The step follows an investigation by the Autorité de la Concurrence (ADLC) (France’s national competition authority), which saw it identify competition concerns regarding private label products and a weakening of suppliers.

Picnic and Edeka to create buying organisation

In an interview with Netherlands-based trade publication Distrifood, one of Picnic’s co-founders, Joris Beckers, has said the retailer will leave the Superunie buying group, which it bought through via the latter’s member Boni. Beckers said in future Picnic will create a purchasing group, to be called Everest, with Edeka. The creation of Everest will see Edeka move its purchasing unit to Amsterdam, from Hamburg. In a subsequent interview, Picnic’s other co-founder, Michiel Muller, said Everest would be open to taking in new members in future too.

Beckers said the step would enable Picnic to create a private label range, which it could then roll out across Europe by having multi-language lables, covering Dutch, English, French and German. The first results of the collaboration will be launched ‘in a few weeks’ with Picnic launching a private label organic range. Beckers said, in future, products would be developed with ecommerce in mind, while also considering sustainability too. Beckers said Edeka would benefit from Picnic’s technology and know-how, which would help it improve its efficiency.

Carrefour Italia and Gruppo VéGé create new purchasing alliance in Italy

Carrefour Italy and Gruppo VéGé have agreed to set up a new purchasing alliance for the large-scale retail sector in the country. AICUBE 4.0 (Associazione Imprese Internazionali Indipendenti) is due to be one of the largest purchasing centres in Italy, representing about 5,300 stores. The agreement is set to last for the next three-years, with no option of early withdrawal.

According to AICUBE 4.0, it is open to add other players from the retail sector. Some of the roles of the new purchasing alliance will include defining baseline agreements with principal common suppliers, identifying synergies with mainstream distributor brands, and implementing common policies for co-packers of premium distributor brands.

Also, AICUBE 4.0 plans to share consumption trends and data with the industry. Christophe Rabatel, from Carrefour Italia, commented: “The alliance with the VéGé Group, with which we have been collaborating for two years, shows how organizations with different matrices can converge, giving life to a lean, efficient and mutually beneficial structure, but above all capable of developing synergies and ambitious projects for the benefit of consumers, going beyond the sum of the market shares to be spent on negotiation. AICUBE 4.0 takes on board the potential of the previous aggregation, in particular the focus on convenience and the enhancement of the supply chains.

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