“Belgium used to be a paradise for manufacturers and retailers, but today, all players are facing tough challenges.” Filip Vankelst, sales director Benelux at Nutrition & Santé – the producer of brands like Céréal, Gerlinéa and Isostar – advocates strategic collaborations, supported by a strong category vision and an authentic sustainability policy.
A golden past
“Ten to fifteen years ago, Belgium was one of those little islands in Europe where prices were structurally higher than in neighbouring countries”, Vankelst looks back. “Higher prices in many cases also mean higher margins, both for retailers and suppliers. Everyone could prosper in the land of milk and honey.”
Until the honey attracted foreign bees and the comfort zone fell away. “Albert Heijn and others saw the potential, but this influx puts pressure on the existing Belgian model.” How to move forward? At RetailDetail’s Category Management Congress, on 19 June, Vankelst shares his more than fifteen years of experience.
“Stuck in the middle”
Margins are under pressure today, promotional pressure is high, and many retailers and suppliers are “a bit stuck in the middle”, Vankelst says. They want more than a transactional relationship, but do not get to the heights of a real strategic partnership. “You have to dare to make choices”, the sales director argues.
“Do you go for a purely transactional model, or do you really build a strategic partnership? The classic one-to-one relationship between retailer and supplier – via buyer and key account manager – is no longer sufficient. An integrated approach is essential: cooperation on shopper marketing, e-commerce, category management, forecasting, data, sustainability and technology is crucial. This requires a clear vision and the right resources.”
Category vision as a foundation
“A category vision does not have to come exclusively from the biggest players”, Vankelst stresses. He uses the example of Céréal: “Although we are the sixth largest biscuit brand in Belgium, we can still offer a clear category vision, based on our expertise in natural nutrition and preventive health. That appeals to retailers, especially now that their own positioning is increasingly about ‘eating better and healthier’.”
It is paramount to involve retailers from the start. “For instance, we held discussions with retailers prior to developing our new category vision. That creates significant engagement. Really working together around future trends, and actively including retailers in your vision, creates space to think together about innovations that can make a difference within two to three years.”
Sustainability as an accelerator
Vankelst believes sustainability is not a compulsory number, but a lever: “It is a partnership accelerator, if you get it right. It has to be authentic and credible: no greenwashing.” Nutrition & Santé, for example, is heavily committed to agroecology, an agricultural approach that supports rather than undermines natural ecosystems. “We work with local farmers and avoid monocultures and pesticides as much as possible. This not only improves the soil, but also the quality of the raw materials.”
Vankelst believes that this kind of initiative makes all the difference: “If you stand with a retailer in such a field and both of you think about innovations around gut health or other trends within healthy food, then you are really building together. The partnership then is no longer just about short-term price promotions, but about long-term sustainable value creation.”
Building value together
Vankelst concludes by stressing the importance of a broad-based approach within companies. “In our company, it is not just the sales division who talks to customers. Marketing, Logistics,…: everyone has to be at the table with the retailer. That is the only way you can live up to that holistic cooperation.”
His final message is clear: “If you do not look beyond margins and price negotiations, you will get stuck sooner or later. You need a clear vision, the right data and an authentic approach. Then you can make real progress together.”
Are you also lying awake, worrying about retail media, engaging Gen Z as customers, the right price setting and supplier relations? Then register quickly for the Category Management Congress on 19 June in Antwerp, with Albert Heijn, BENU, LD&Co and many others!
