European retailers Colruyt Group, Coop Switzerland and Superunie have established Vasco International Trading to negotiate purchases of “leading” multinational brands.
Belgium-based Colruyt said in a joint statement that the “independent company aims to enhance the purchasing effectiveness of its shareholders to re-establish a level playing field to secure competitive terms and conditions from FMCG goods from international A-brand suppliers.”
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It added: “Vasco International Trading permits its shareholders to compete more effectively with internationally organised competitors, from which ultimately, shareholder’s customers will benefit.”
Vasco International will serve as a central point of contact for “specific negotiations” with international suppliers, on pricing and contract terms.
Colruyt’s chief purchasing officer, Geert Roels, acknowledged that on a global scale, the retailer is a “rather small player.”
He said joining the alliance would help safeguard its “competitive position in Belgium” and provide “extra leverage” to uphold its “lowest prices” commitment to customers.
Numerous European retailers have found themselves in conflict with consumer goods companies regarding pricing issues.
For instance, in September, Denmark’s leading retailer, Salling Group, decided to pull certain products from the shelves that were supplied by the local dairy giant, Arla Foods, due to a disagreement over pricing strategies.
Similarly, this February, the French retail powerhouse Le Groupement Mousquetaires criticised Mars for halting deliveries to its stores amidst a pricing dispute.
On a more positive note, in June 2023, Colruyt and Mondelez International successfully reached a resolution concerning product pricing, following a period of contention between the two parties.
Headquartered in Amsterdam, Vasco International will analyse markets, products, trends, and pricing to drive efficient negotiations and create “synergies” among its members.
Superunie CEO Boudewijn van den Brand added: “With our participation in this new purchasing alliance, we have the opportunity to strengthen the competitive position of our members in the Dutch market by working closely with retailers who have a strong position in their home markets. Our ultimate goal is to offer consumers in the Netherlands better prices.”
Superunie, based in Beesd, the Netherlands, operates as a coalition of over ten independent supermarket organisations.
Andrea Kramer, who leads the marketing and purchasing business unit at Coop Group, emphasised that as a “smaller European player,” it was crucial for them to find partners with shared values, plans, and ambitions.
Kramer further said that “we are confident that Vasco will be a significant asset in maintaining competitiveness in the market”.
Vasco International will leverage data and market insights to support negotiations with suppliers.
The operational framework will be finalised in the coming months, with supplier negotiations expected to begin in autumn 2025.
Approached by Just Drinks, Colruyt confirmed that it “will also remain a member of Agecore” alliance, which was established in 2015. AgeCore also includes Conad in Italy, Coop in Switzerland, and Eroski in Spain as partners.
Colruyt explained that Agecore provides services in return for an additional condition, which it refers to as “on top.”
It said the term is designated “because it is separate and added on top of the already nationally negotiated terms”.
