Under the name Vasco International Trading, the retailers Colruyt Group, Coop Group and Superunie have formed an European alliance to strengthen their position in purchasing discussions with multinational brands.
Competitive disadvantage
The new alliance, based in Amsterdam, wants to strengthen its three partners’ competitive position to negotiate prices and other conditions with international A-brand suppliers. “We are really going to purchase together, this is not about ‘on top’ conditions”, Colruyt Group Chief Purchasing Officer Geert Roels told RetailDetail. Colruyt will therefore also remain part of the Agecore alliance and will continue to purchase its private labels as part of EMD.
Joining forces is necessary for the three, because everything is becoming more and more international, Roels emphasises: “Manufacturers do still have satellite offices in Belgium, but the real decisions are taken at an international level. In addition, all our competitors purchase internationally. We are experiencing a competitive disadvantage, so this is a logical step.”
Mutual trust
The three partners, who each own one third of the shares in Vasco International, have known each other for a long time, Roels points out. “We have been working with Superunie since the 1990s. There is a large overlap in terms of suppliers and product range. They are in the same situation as us: they are not yet internationally organised for the purchase of A-brands, while their competitors are. Also, we know Coop from Agecore and there is a lot of mutual trust.”
The three founding members are relatively modest players: are they big enough together to make a difference? “Superunie is about the same size as us in terms of purchasing volume, Coop is slightly larger – including their food service activities. We are not the biggest alliance, and we are open to partners joining in the long term. But we really wanted to start this up, and that would not be easy with four or five partners.”
Modest start
The first negotiations will start in the autumn of this year. The alliance will start modestly in the first year, but in the long term Vasco International wants to engage in negotiations with the fifty or so largest FMCG multinationals.
The alliance does not set itself any concrete objectives regarding purchasing advantages. “Consultants are enticing us with impressive percentages, but first we want to pool our best practices and gather knowledge across borders. A small percentage on a large amount would already be worth it.”
