Kaufland Slovakia launched a locally sourced private label range under the name ‘Z lásky k tradícii’ (From love to tradition). Kaufland Slovakia’s spokesperson, Lucia Langová, said that ‘the project was to mimic the Romanian concept 'K-Vreau din România' that was launched November 2017.
'Z lásky k tradícii’ is local and quality
The ‘Z lásky k tradícii’ range obtains traditional Slovak products from regional suppliers. The range currently focuses on dairy products – yoghurt, milk, and kefir - and are made from raw materials sourced domestically. They are sourced from grass-fed and free-range cattle bred in the northern Slovakian mountains.
Source: Kaufland Slovakia
Kaufland Slovakia invested in a local dairy supply chain
Kaufland Slovakia had to develop a local dairy supply chain before launching its ‘Z lásky k tradícii’ range. In 2015, the retailer tried to showcase its local sourcing credentials via it ‘Z lásky k Slovensku’ campaign (From love to Slovakia). However, there was a gap in the market for consistent supply of local produce. The supply chain needed to grow and guarantee a level of product supply and quality assurance. Since 2016, Kaufland Slovakia cooperates with regional suppliers by providing training on product quality assurance and packaging. The retailer also supported suppliers to increase their production capacity.
Kaufland is likely to add more locally sourced ranges
Kaufland is filling in a gap in its private label portfolio by adding locally sourced ranges in Romania and Slovakia. This is an area where it did not have much focus on when compared to its competitors. This makes sense for the retailer as support for local producers and promotion of traditional dishes may well resonate with shoppers. Kaufland Slovakia’s support of a local supply chain guarantees a consistent stream of locally sourced products and keep logistical costs under control. Kaufland is then likely to invest more in small and medium-sized producers and add locally sourced ranges in its other country operations.
For more insight on local sourcing and other global retailing trends, see our presentations Global retail outlook 2018 and Local sourcing in Europe (for subscribers).