UKRAINIAN ORGANIC EXPORT DAYS 2021
15
“Ja-Natürlich” the organic product label of REWE Group in Austria. The growth rate for the SPAR “Natur pur” logo is remarkable. After Mr. Gerhard Drexel, CEO SPAR: “growth rates are over 20 %. More than 1.000 organic products are sold under this brand – among approx. 4.000 in total.” Mr. Drexel further outlines: “The secret of success is a clear focus on “regional origin”. Austrian suppliers enjoy preference in case of equal quality. 10.000 Austrian organic farmers benefit from this.”* *source interview in “Key Account” trade journal 2020/6
That seems at first sight not favourable for the Ukrainian exporter. But note: You may supply when you have
BETTER QUALITY (MAYBE A BETTER PRICE ALSO COUNTS) A UNIQUE PRODUCT A PRODUCT NOT ABLE TO SOURCE IN AUSTRIA (AT THIS TIME, AT THIS QUANTITIES) …….
The mentioned figures above are for Austria. Take these – multiply by 10 – and you do have the equivalent figures for Germany! That means under the private labels of REWE, EDEKA, etc. …. waits a potential of many billions of € for your as a potential supplier.
Within these private labels is considerable room to sell your products. 4.3.4. Advantages working with retail chains
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Defined time and quantity
Contracts refer to a certain quantity, often a large ones & over a defined period of time. This is a good ground for planning.
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Minimal risk of non-payment As a matter of fact retail chains are huge companies and very seldom fail. And even when they fail they got bought by competitors, usually overtaking liabilities.
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Large scale deliveries Logistic systems of large retailers are designed for large deliveries. But not every product category may count on full truck-loads. With more specialized retailers with limited number of outlets be prepared to quote and to deliver pallets. When you do have e.g. an organic snack with 1.000 sales units on the palette and customer is organic retail chain with e.g. 50 outlets they will not take more than a few pallets from your product. Or they will ask you to go for an importer and come back with an indirect offer.
