Iberian retail group DIA and French counterpart Casino have agreed to set up a new joint venture with the goal of gaining more competitive terms from large suppliers.
ICDC Services will negotiate with producers of branded products and also develop private label brands to be distributed by the respective retailers. Moving forward, the JV could be responsible for 50% of the volume of the private label products in Europe for both companies.
According to an official statement, it will allow the partners to improve their offering to consumers both in terms of selection and price.
The business policies of both companies will continue to operate independently.
The alliance will take effect, subject to the approval of the relevant competition authorities, at the start of the 2016 round of purchasing negotiations.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
