Several agreements have been concluded during the past three months between Auchan Retail, Casino Group, METRO and Schiever Group. A set of alliances in purchasing called “Horizon” has been created. The new alliances will focus on moving away from purely transactional negotiations towards a collaborative, balanced and innovative type of negotiations.
Internationally, Horizon will act in three areas:
« Horizon – International Services »
Auchan Retail, Casino Group and METRO (including Real) will offer the main brands suppliers international services based on their complementary geographic locations and their presence in countries with a strong potential.
« Horizon – International SME »
Auchan Retail, Casino Group and METRO will assist SMEs in their international development.
« Horizon – International Tender »
Auchan Retail and Casino Group will be able to launch invitations to tender for their general expenses and their non-differentiating basic private-label brands.
These platforms will be based in Geneva. Other partners may join these alliances shortly.
In France, Horizon will act in three areas:
“Horizon – National Brands”
Auchan Retail, Casino Group, METRO France and Schiever will jointly negotiate their purchases with the main manufacturers of national brands. Small and medium-sized businesses as well as farmers are not affected.
“Horizon – Invitations to tender”
Auchan Retail, Casino Group, METRO and Schiever will jointly launch invitations to tender for their general expenses and their non-differentiating basic private-label brands.
“Horizon – sectors”
Auchan Retail, Casino Group and Schiever will develop common agricultural sectors in line with the commitment made during the Etats Généraux de l’Alimentation (France’s National Food Conference). The first four sectors will be announced in the coming weeks.
In France, these ‘next generation’ platforms commit to:
– Present their negotiating objectives at a very early stage;
– Install a negotiation monitoring committee, to which will be associated provider representatives;
– Finalize the annual negotiations gradually, mainly one month before the deadline which is in March the 1st;
– Systemize the talks about the subjects of nutrition and health;
– Develop multi-annual agreements;
– Ensure guarantee of fair treatment to agricultural producers.
In building Horizon internationally and in France, Auchan Retail, Casino Group, METRO and Schiever confirm their common vision and culture when it comes to their relationship with suppliers.
Based on that, these agreements will be respectful of everyone’s interest: customers, farmers and manufacturers. Each party will continue to be independently responsible for its own commercial strategies and sales policies, which include building product ranges, defining pricing and promotional activities.
Relevant competition authorities will be approached for approval prior to the implementation. A submission has been made to the competition authority in France immediately upon signing of the agreements for France on 18 May.