Local suppliers and innovation

Products sourced from local suppliers

How we promote local production

We use visual elements to identify the local origin of some products. For example, stickers with the colours of the national flag on perishables, such as fruit and vegetables, and providing additional information on Private Brand products. We also strive to highlight the local origin of products in the communication that the Companies promote in stores, leaflets, digital channels, payment receipts and advertising campaigns.

Support to suppliers

The responsible way in which we strive to manage our business also ensures lasting and trusting relationships with suppliers, who can benefit from various measures to stimulate their development and enable them to grow with us.

Since 2012, the Group has promoted a measure – unique in retail in Portugal – to support the national members of the Confederation of Portuguese Farmers, bringing forward payment to ten days (on average) – the law provides for 30 days. Over 370 suppliers have benefited from this initiative.

In Poland, and since 2020, Biedronka has reduced payment terms to a maximum of 21 days for 160 farmers with a turnover of less than 100 million złoty.

In Colombia, Ara established a partnership with BBVA in 2020 enabling more than 400 fruit and vegetable suppliers to receive early payment on their invoices at more favourable rates and without affecting their credit rating. This type of facility is also implemented in Portugal and Poland, covering more than 230 and 440 suppliers, respectively.

Partnerships and innovation in the offer of local products

We seek to constantly introduce innovative local products in our offer. This gives consumers access to a more diverse assortment, while stimulating partnerships with our suppliers and developing their skills.

POLAND

In May 2021, local producers were challenged to deliver their products to Biedronka stores or distribution centres located close to the production area. The success of the initiative resulted in the programme being extended to 160 suppliers in 2022 (97 more than in 2021), who delivered around 87,000 tonnes of fruit and vegetables. This initiative follows another, in place since 2014, where strawberry suppliers reduced the time between harvesting and marketing by directly delivering the strawberries (which have a very short life cycle) to stores and distribution centres.

Biedronka also supports fruit production by Polish farmers to replace imports, particularly apricots and watermelons.

PORTUGAL

Pingo Doce and Recheio use in-store communication, social media posts and leaflets to raise awareness among consumers of the importance of consuming seasonal, locally grown produce. In 2022 Pingo Doce bought an additional 1,000+ tonnes of domestically produced cherries, apples and kiwi, following its investment in the marketing of “Protected Geographical Indication” and “Protected Designation of Origin” products such as the Rocha pear, Golden, Starking, Royal, Gala and Bravo Esmolfe apples, as well as apples from Alcobaça and the Beira Alta regions.

Recheio has been working with national producers to launch exclusive olive oil and wine references for several years. In 2020, it launched the “World-Class Wine Cellar”, a project to represent and distribute exclusive wine brands produced by small and medium-sized Portuguese producers. The goal is to combine quality wine projects with Recheio’s knowledge and scale, thereby giving them visibility in the HoReCa channel and in traditional retail.

COLOMBIA

In 2022, Ara took the initiative to establish a commercial relationship with the suppliers of one of its competitors after the latter exited the market, contributing to the continuity of its business and using existing production capacities. It has progressively been forging alliances with suppliers in the fruit, bread and pastry, meat, sauces and other categories.