The German retailer REWE Group (REWE, PENNY) and Greenyard, a global fruit and vegetables player, announce today that they have signed a letter of intent. This letter is signed with a view to expand their current relationship in the German market into a long-term, vertically integrated and transparent partnership in fresh fruit and vegetables and flowers, facilitated by a dedicated operating unit.
This is the next step in Greenyard’s customer-orientated strategy of implementing tailor-made partnership models and illustrates Greenyard’s direction to sustainably cooperate with all its customers. This partnership will optimize and share resources in the supply chain of various product categories. By improving efficiencies and capacity utilization, the extended cooperation aims to realize sustainable and profitable growth for all parties in the chain.
This partnership entails both companies being committed to continuously bundle their product flows into this dedicated unit. Added value services, such as ripening and managing a range of product categories will be provided by Greenyard. The agreement emphasizes the importance of the fruit and vegetables category for REWE Group and shortens the supply chain. Both partners are convinced that this cooperation optimally positions them for the fruit and vegetable retail market of the future.
Managing Director Ultra Fresh (fruit and vegetables) of the REWE Group, Eugenio Guidoccio, says: “REWE Group and Greenyard can look back on a long and successful relationship. With today’s letter of intent, we are defining another common milestone in our fruit and vegetables business. I am convinced that this intensified partnership can make us both more efficient and thus more successful in offering the highest quality fresh produce to our consumers.”
Co-CEO of Greenyard, Hein Deprez, adds to this: “This letter of intent marks the start of the implementation in one of our largest markets of the partnership model, which has already been successfully deployed in the Netherlands, Belgium and the UK. The partnership model responds to the changing consumer and customer’s requirements and needs. Not only will the intensified cooperation have a positive impact on the entire value chain, it also marks an acceleration in Greenyard’s shift towards increased sustainability of its business model.”