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Australian retailer Woolworths joins EMD alliance

Published 15 March 2017

Australian supermarket chain Woolworths has joined the alliance created by the purchasing and marketing group, European Marketing Distribution (EMD).

This new partnership means Woolworths will maximise the EMD network to procure volume for its private label product ranges.

Thanks to cooperation with the Australian supermarket chain Woolworths, EMD strengthens its position as a major purchasing and marketing group alliance all over the world. Woolworths currently operates nearly 1000 supermarkets in Australia - and more than 180 in New Zealand.

Already before this new membership, EMD combined a revenue of €178bn - its new member, the Woolworths Group, achieved a revenue of more than A$58bn (about €38bn euros) in the 2016 financial year across its operations in  Australia and New Zealand.

Woolworths is focused on providing access to great quality food and non-food products to customers across Australia and have been known as the Fresh Food People for more than 30 years.

The newly signed agreements are profitable for each and every member of EMD: additional and interesting opportunities for procurement of goods overseas are created for the European trading companies already belonging to the group alliance.

Woolworths will optimise its European purchasing procedures through the already established office in Switzerland and working in close cooperation with EMD. The agreement between EMD and Woolworths relates initially to the private label business only.

Woolworths Food Company director Steve Greentree said: "We are delighted to partner with EMD. This collaboration will increase our access to great quality private label products that we are unable to source locally.

“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."

EMD managing director Philippe Gruyters said: "The integration of procurement volumes in high demand and customer-oriented marketing activities brings considerable benefits for both the trading and the manufacturing sector.

“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 (FMCG) ranges."

The leading role assumed by EMD was highlighted last year when at the beginning of 2016, one of the most prominent trade companies in the United Kingdom, the Wal-Mart subsidiary Asda joined the EMD Group.

A short time later EMD announced together with the Kaufland Group 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 decided to join the EMD alliance's international agreements for Russia and the Czech Republic, together with various contracts relating to German Globus hypermarket sites.

The bottom line is that EMD, having added the turnover of the newly joined Woolworths to the group, represents a worldwide total turnover of more than €216bn. EMD is now operating in 20 European countries and now including Australia and New Zealand.

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

Since 1989 EMD has been recognised by the industry as a trustful, efficient sourcing and business development partner.

Source: Company Press Release