Belgian fruit and vegetable producer Greenyard and German retailer Rewe are starting a joint venture to deliver the former’s products to the latter’s stores.
Fresh Solutions
The joint venture, called Fresh Solutions, will allow Greenyard to supply the German market leader with a significant quantity of the fruit and vegetables it needs. The two have signed more than just another cooperation contract, however: both companies have started a joint venture in which Rewe takes a minority share of almost 5 %, Belgian business newspaper De Tijd reports.
For Greenyard, it is not the first time that it creates a subsidiary with the specific goal of supplying a large customer: for example, deliveries to Ahold Delhaize happen via the separate company Bakker Barendrecht. However, it is quite remarkable that such a company is a joint venture in which the customer itself takes part. Analysts point out that this shows the importance and intended longevity of the collaboration.
This proves to be a fruitful period for Greenyard, which also secured huge contracts with Tesco (where it now supplies all the frozen foods) and Delhaize (where it supplies almost all the fresh produce).
