Casino and DIA Groups form a strategic international alliance in purchasing and services
OREANDA-NEWS. The Casino and DIA Groups have decided to join forces internationally to boost their competitiveness relative to major suppliers of national brand food products. The partners will be offering them access to a unique portfolio of global services (e.g., data sharing, country development assistance, etc.), while combining their expertise and the synergies that exist between their geographic locations and store formats.
In addition, the partners have agreed to coordinate purchasing negotiations for their private-label brands in Europe, with the aim of ultimately pooling around 50% of volumes. One of Europe's largest private-label platforms is thus being created, to open up additional markets to existing suppliers and also improve the product offering available to consumers.
The alliance will take effect, subject to the approval of the relevant competition authorities (where needed), starting with the 2016 round of purchasing negotiations, via a new joint venture, ICDC Services. It will be created in addition to the two Groups' existing purchasing partnership agreements, which will remain unchanged.
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