Germany: news in review

Date : 05 July 2017

We round up the latest news from Germany. This includes Edeka's launch of the Foodstarter platform, Rewe's online trial in Penny and free delivery for VIP customers more broadly, as well as dm testing free click & collect.

Edeka introduces Foodstarter as it targets new suppliers

Edeka has unveiled a new online platform, Foodstarter, where new food suppliers can present their products to over 4,000 Edeka merchants. The merchants can then order sample products and ultimately sell these in their stores.

Two to four new products weekly, eligibility criteria applies

Around two to four new products will be introduced weekly on the Foodstarter platform. From an eligibility perspective, suppliers should not yet have a relationship with Edeka and products must not need refrigeration. The platform states, ‘We offer the platform to connect up-to-the-minute products and the food retailers [in an] uncomplicated and fast way’.

Innovation is key as retailers target new up and coming brands

Elsewhere in Europe, retailers are increasingly looking to work with smaller, niche food suppliers as they look to tap into the latest food trends, support local sourcing and stand out from the competition. In the Netherlands, for instance, earlier this year Albert Heijn ran its third annual innovation event, where it hoped to meet new, future suppliers.

Meanwhile in the US, Walmart runs an annual open call event for American manufactuers, where they get the opportunity to pitch products to buyers. The latest event attracted 500 suppliers and 750 products and helps support Walmart’s promise to add $250bn worth of American-manufactured products by 2023.

Penny goes online

In other news, Rewe's Penny discount format is trialling an online service in Germany. The website offers a selection of non-food items and alcohol from Penny's weekly store specials. In the future, Rewe plans for its online service to be a 'central point of contact' for shoppers, expanding its offer to include fresh and frozen food.

With Amazon Fresh launched in Berlin and Potsdam in May and Kaufland offering online fresh grocery in Berlin and Hamburg, the channel is becoming increasingly competitive. We expect this to develop further in the future.

Rewe trials free delivery for VIPs in Berlin and Cologne

On a related note, Rewe is reportedly trialling free delivery in Berlin and Cologne for select VIP customers spending €40 or more. This is initially available for six months, although it can be extended on request. Rewe’s online grocery service is currently available in around 75 German cities.

The retailer is also testing an online marketplace which sells products from specialist partners including wine or toys.

dm tests free click & collect

Elsewhere in the market, dm is trialling a free click & collect service over the summer period with no minimum spend across most of its German stores. Until this point, users paid €4.95 for the service, the same as home delivery.

This follows rival Rossmann’s introduction of click & collect in January 2016, although this has a minimum order value of €20.