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EURELEC
Ahold Delhaize joins the European purchasing alliance

EURELEC, the purchasing alliance founded in 2016 by the German REWE Group and the French retailer cooperative E.LECLERC, will also negotiate and purchase from multinational manufacturers of premium brands for the European retailer Ahold Delhaize in future. Subject to the approval of the antitrust authorities, preparations for the joint procurement planned from 2025 will begin next year.

 

E.LECLERC and REWE Group have signed an agreement with Dutch retailer Ahold Delhaize to include the European retailer as a third shareholder in the European buying alliance EURELEC.

With the new partnership, EURELEC continues its efforts to co-create an open European single market for negotiating and trading with the brands of the largest international FMCG manufacturers in order to purchase their products at the fairest possible price for the benefit of the European consumers of the three retailers.

The independent European retailers REWE Group and E.LECLERC founded EURELEC with the strategic intention of ensuring fair and realistic supermarket prices for consumers in accordance with the principles of the European Single Market. In negotiations with major international consumer brands, the food retailers rely on cross-border co-operation. As a European wholesaler, EURELEC acts as a centralised trading and sourcing platform to negotiate fairly and openly the different price demands of the largest international FMCG brand manufacturers for each EU country, while reducing complexity (and costs) for international manufacturers. The accession of Ahold Delhaize underlines the importance and effectiveness of EURELEC as a European platform for joint procurement. Thanks to EURELEC's transnational experience in this area, all trading partners - and especially European consumers as their customers - will benefit from fair purchasing prices in a larger number of national markets across Europe, in addition to Ahold Delhaize.


 

Wouter Kolk, CEO of Ahold Delhaize Europe & Indonesia: "Due to its retail presence in various European countries, our company Ahold Delhaize has observed the so-called 'Territorial Supply Constraints' (TSCs) first-hand.

Due to its retail presence in various European countries, our company Ahold Delhaize has observed first-hand the so-called 'Territorial Supply Constraints' (TSCs). These territorial supply constraints are caused by manufacturers selling exactly the same product at a different price in a different market. Whilst we have no explanation for these differences, it is clear that this is contrary to open price comparison and access to products in different national markets - to the detriment of European consumers to whom we want to continue to offer affordable food in these challenging times. Ahold Delhaize is looking forward to becoming part of the leading European retail alliance EURELEC, which is committed to open and fair price negotiations with the biggest FMCG brands across Europe, ultimately benefiting our customers."

Hans-Jürgen Moog, CEO of EURELEC: "Together with Ahold Delhaize, REWE Group and E.LECLERC share the vision of creating a level playing field throughout Europe for the benefit of our consumers.

By working closely together, we will strengthen the internal market even more efficiently and effectively."


Although the European single market is celebrating its 30th anniversary this year, it remains fragmented by international suppliers - to the detriment of European consumers. In addition, FMCG inflation across Europe is currently at record levels and value chains are highly unstable due to global macroeconomic disruptions. It is therefore more important than ever for supermarkets to ensure consistently affordable prices for their customers. Retail alliances such as EURELEC offer them the support they need to do this.

 

About Eurelec

EURELEC Trading SC - EURELEC Trading (EURELEC) is a Brussels-based European trading alliance founded in 2016 by REWE Group (Germany) and E.LECLERC (France). On behalf of its shareholders, EURELEC Trading aims to negotiate European purchasing conditions for various countries (currently: Germany, France, Austria, Poland and Portugal) together with the largest international FMCG manufacturers represented in several EU markets. EURELEC Trading negotiates in the following product categories: Food, fresh and frozen food, cleaning products, cosmetics and beverages.

EURELEC's mission is to utilise transnational synergies and the principles of the European single market for the benefit of European consumers, thus creating added value for all shareholders. The EURELEC team is based in the heart of Europe and consists of 30 employees, representing six nationalities and speaking eight languages.

Contact information: info@eurelec-trading.eu

English Version


Joint venture
Ahold Delhaize is joining the European purchasing alliance EURELEC.

E.LECLERC and REWE Group have signed an agreement with the Netherlands-based group Ahold Delhaize to welcome the European retailer as a third shareholder of the European retail alliance joint venture EURELEC.

Established in 2016 by German and French independent retailers REWE Group and E.LECLERC, EURELEC hereby shares the intention to integrate the negotiation and purchasing of large multinational manufacturers of A-brands for Ahold Delhaize in Europe, with a focus on Benelux. Following the approval of competition authorities, the preparations will start in 2024, and the joint sourcing as of 2025.

With this new partnership, EURELEC will further contribute to the effective realisation of an open single European market for the negotiation and trading of the brands of the largest international FMCG manufacturers and purchase them at the fairest price possible for the benefit of the consumers of the three retailers in Europe.

EURELEC is the result of the strategic intention of European independent retailers REWE Group and E.LECLERC to foster fair and realistic consumer prices in their stores through effective adoption of the principles of the European single market. These food retailers work together cross border to negotiate with large, international consumer manufactures. As a European wholesaler, Eurelec acts as a single sourcing platform reducing the complexity and cost of sourcing for large international manufacturers. EURELEC challenges through open and fair negotiations the difference of price requested by FMCG manufactures across the European Union. The accession of Ahold Delhaize confirms the relevance and effectiveness of EURELEC as European joint purchasing platform. Together with Ahold Delhaize benefiting from the cross-border joint purchasing experience accumulated by EURELEC, all retail partners - and especially their European consumers - will eventually benefit from fair purchasing prices across a larger number of national markets throughout Europe.

"We experienced price differences between European countries that cannot be objectively explained other than that some manufacturers sell the exact same product at different prices in EU countries. We owe it to our consumers to keep food affordable in these challenging times and grant them access to a true European single market. Ahold Delhaize is looking forward to joining EURELEC, as a leading European Retail Alliance promoting open and fair price negotiation of the largest FMCG brands across Europe which ultimately benefit our customers" says Wouter Kolk, CEO of Ahold Delhaize Europe & Indonesia.

"Together with Ahold Delhaize, REWE Group and E.LECLERC share the common vision of creating a level playing field for the benefit of our consumers across Europe. Together, we will be even more efficient and effective in strengthening the single market" according to Hans-Jürgen Moog, President of the Board of EURELEC.

Even though this year marks the 30 anniversary of the European single market, European retailers are still confronted with a fragmentation of the single market by international suppliers at the expense of European consumers. Retail alliances such as EURELEC support their retail partners in keeping prices affordable for consumers, which is very important in these times of record high FMCG inflation across Europe and great instability of value chains due to global macro-economic disruptions.

About us:

EURELEC Trading SC - EURELEC Trading (EURELEC) is a European retail alliance based in Brussels and co-founded in 2016 by REWE Group (Germany) and E.LECLERC (France). EURELEC Trading's purpose is to jointly negotiate European purchasing conditions with the largest international FMCG manufacturers present across several EU markets, on behalf of its shareholders for different countries (currently: Germany, France, Austria, Poland, and Portugal). EURELEC Trading negotiates the following categories: Grocery, Fresh & Frozen, Detergents, Cosmetics and Beverages.

EURELEC's mission is to deliver supplemental value for all shareholders by realizing cross-country synergies and leveraging the principles of the European single market in favour of European consumers. EURELEC team consists of around 30 employees of 6 nationalities speaking 8 languages based in the capital city of Europe.

Contact information: info@eurelec-trading.eu

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