Colruyt Group becomes partner of European Marketing Distribution

Friday, June 30, 2023

Consumers are increasingly buying private label products such as Boni Selection and Everyday from Colruyt Group's store formulas. In order to further strengthen its purchasing position for these specific brands, Colruyt Group is set to collaborate, as of 1 July 2023, with the international alliance European Marketing Distribution (EMD), specialised in the joint negotiation of purchasing conditions for private label products. Additionally, Colruyt Group will remain a member of the retail alliance AgeCore.

The importance of private label products is on the rise, especially now that consumers are increasingly mindful of their budget. Geert Roels, CPO at Colruyt Group: "Since the inflation took off, customers are buying more of our private label products such as Boni Selection and Everyday. Today, those products account for more than half of the volume sold in our Colruyt stores."

Colruyt Lowest Prices started to notice the shift at the end of last year and saw an accelerated effect in recent months, with May 2023 being the absolute top month so far. Geert Roels: "The mechanism of downtrading, which means that customers choose a cheaper alternative by buying a private label product, is clearly in full swing. That’s why we want to build a stronger position in the purchase of these private labels. We also see an internationalisation of the private label product market, combined with a wave of concentration on the supply side of private labels, which means we need to be better organised internationally".

That’s one of the reasons why, as of 1 July 2023, Colruyt Group will become a partner in the international alliance European Marketing Distribution (EMD). By also teaming up with a group with a specific specialisation in private label, in addition to its existing membership with AgeCore, Colruyt Group gains access to a much broader (European) network of private label suppliers. Geert Roels: "By working together with EMD, we will be able to cooperate on a much wider international scale, while purchasing conditions will improve. This is not only beneficial for Colruyt Group, but also for consumers as it will contribute to the accomplishment of Colruyt Group's ambition of offering affordable quality products within our the Boni Selection and Everyday brands. For us it is a nice addition to our purchasing policy.”

Colruyt Group will collaborate with EMD to purchase products for its private labels Boni Selection and Everyday, which are sold at Colruyt Lowest Prices, Okay, Bio-Planet, Spar Colruyt Group and Solucious. Colruyt Group has received a warm welcome at EMD as a new partner. Philippe Gruyters, managing director of European Marketing Distribution AG, is already looking forward to working with Colruyt Group for private label products: "Colruyt Group is one of today’s most customer-oriented and innovative retailers, with a strong private label offering. This is an excellent basis for cooperation with the EMD alliance, which focuses exclusively on the joint sourcing and purchasing of high-demand private labels, for which there is increasing demand."

Geert Roels: "We are looking forward to working with EMD's private label specialists and the various reputable retail colleagues within this alliance. The network enjoys an excellent reputation among international retail alliances and stands for the joint sourcing of high-quality and sustainably produced private labels. In addition, Colruyt Group becomes the only Belgian partner within EMD, which also allows us to contribute our expertise and the products of Belgian producers to an international context."

The cooperation between Colruyt Group and EMD is a private label partnership. It is not a membership. Colruyt Group remains a member of the AgeCore alliance for both national brands and private label products.

About EMD: 

European Marketing Distribution AG, headquartered in Pfäffikon, Switzerland, has been known in the consumer goods industry since 1989 as an efficient and high-performance partner for Fast Moving Consumer Goods (FMCG). In particular, it develops and sources high-efficient and sustainably produced private label concepts for the benefit of consumers in now 21 countries. The EMD headquarters also supports and implements global partnerships in the area of on-top agreements with the largest brand manufacturers. Without Colruyt Group, EMD member companies in Europe and Oceania currently represent an external turnover of over 225 billion Euro.

The member companies of European Marketing Distribution (EMD) are active in the following markets: