Woolworths has partnered with a major European buyer as part of its private label procurement strategy.

The supermarket retailer has joined forces with Swiss-based European Marketing Distribution (EMD), which now represents a worldwide total turnover of over 216 billion euros (178 billion without Woolies).

The company operates in 20 European countries and represents the interests of about 400 trading companies and over 155,000 point of sales in every type of distribution, mainly in grocery retail.

Both companies said the deal will mean Woolworths will optimise its European purchasing procedures through the Swiss base. The agreement between EMD and Woolworths relates initially to the private label business only.

“This collaboration will increase our access to great quality private label products that we are unable to source locally,” said Steve Greentree, director, Woolworths Food.

“Combined with our commitment to source Australian products first and foremost, this ensures our customers will have even more choice and convenience when shopping for own brand products at Woolworths.

“Furthermore, the agreement will provide a direct network for Woolworths’ Australian and New Zealand suppliers to maximise investment and growth opportunities with European retailers.”

Interestingly, EMD is heavily associated with the latest supermarket entrant into Australia, Kaufland. Last year, EMD announced that all the Kaufland stores in the Czech Republic, Slovakia, Poland, Croatia, Romania and Bulgaria would manage their international agreements with the branded product industry also through EMD. Added to this, German hypermarket specialist Globus also joined the alliance’s international agreements for Russia and the Czech Republic, together with various contracts relating to German Globus hypermarket sites.

“The integration of procurement volumes in high demand and customer-oriented marketing activities brings considerable benefits for both the trading and the manufacturing sector,” said Philippe Gruyters, MD, EMD.

“Our commitment in the Oceanian countries of Australia and New Zealand reinforces the importance of EMD and sets a new standard regarding the dynamic commercialisation of all products in the fast moving consumer goods ranges”.

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