CLOSE TO PRODUCTION

We prioritise working with local suppliers to minimise waste, reduce our environmental footprint and ensure product freshness.
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Relationship with suppliers

We believe that proximity is essential for quality. The closer we are to where food is produced, the easier it is to ensure its freshness and quality. Buying locally also means that transport routes are shorter, which helps reduce greenhouse‑gas emissions and the environmental footprint associated with our products and operations. Local economies also benefit, as these partnerships promote regional businesses and create employment opportunities.

That is why our strategy is based on going local, wherever we are. We adapt our product assortment to consumer trends and the specific characteristics of each market. At Group level, more than 90% of the food products we sell come from local suppliers.

We consider our suppliers as long-term partners, working together with the common goal of offering the best products to our consumers. To support this, we have strict guidelines and provide training in environmental and quality standards, thus promoting compliance with our sustainability strategy and building more resilient supply chains.

Fighting deforestation through responsible sourcing

A responsible sourcing policy is essential to ensuring more sustainable supply chains. Together with our suppliers, we work to combat deforestation and prevent the destruction of tropical forests linked to the ingredients used in the products we sell. Our efforts focus on the raw materials most associated with deforestation risk: palm oil, paper/wood, beef and soy.

KNOW OUR STRATEGY

Selection of suppliers

To ensure alignment with our Corporate Responsibility principles, we carefully select and monitor suppliers for perishables and Private Brand products, conducting regular audits in three key areas: food safety and quality, environment and social.

Food safety and quality audits

Food safety and quality are central to our supplier evaluation and monitoring processes. We conduct audits during the selection of new suppliers for perishables and Private Brand products, as well as throughout the development and production stages. These audits assess:

  • hygiene standards,
  • traceability,
  • food safety practices,
  • labour-related aspects.

Environmental audits

Environmental audits – both during selection and throughout the partnership – evaluate process and systems management, as well as product formulation. Suppliers must meet minimum requirements to be selected, and those already working with us must follow corrective action plans if they fall short. Failure to comply may result in suspension or termination of the partnership.

Social audits

Social audits are a key part of our due diligence process, especially for suppliers with annual purchases exceeding one million euros. These audits assess labour practices and human rights compliance, helping suppliers understand and address social risks. Conducted by independent entities, the audits follow international best practices and include interviews with employee – especially those from vulnerable groups – to ensure transparency and fairness.

HIGHLIGHTS

Sourcing from local farmers

Over the past few years, we have been transforming the way food reaches our stores – and, above all, strengthening our relationship with those who produce it.

In Poland, everything began in 2021, when Biedronka decided to build closer ties with small local producers. What started as a programme with just 60 participants has grown into a solid network of more than 260 producers in 2025. Together, they delivered around 270 million food items, bringing fresher products to stores and creating a direct impact on the communities where they operate.

In Colombia, Ara created ``La placita de Ara``, a special area at the entrance of stores designed to highlight fruits and vegetables purchased directly from local producers. In 2025, more than 100 producers were already part of this initiative, contributing to the sale of around 80 thousand tonnes of fresh food and reinforcing each store’s local identity.

In Portugal, Pingo Doce has been promoting national production through communication both inside and outside its stores – on social media, on packaging and in specialised fresh‑produce leaflets. In 2025 alone, it purchased more than 16 thousand tonnes of fruit such as apples, cherries, chestnuts and kiwis, strengthening its commitment to Portuguese producers and to offering local products.

Safeguarding the future of food production

Since 2021 we have been assessing more than 230 perishables and Private Brand suppliers of Biedronka, Pingo Doce, Recheio and Ara to evaluate climate-related risks and opportunities.

This assessment identified growing concerns about extreme temperatures and water availability, prompting suppliers to adapt their operations to maintain production levels and product quality. Key strategic responses include:
- Diversifying ingredients origins (e.g. bananas, cocoa and rice) to regions with more favourable climate conditions.
- Investing in more resilient varieties of raw materials, while maintaining their sustainable origin.
- Developing value-added products that are easier to preserve, such as jams or dehydrated goods.

Promoting sustainable agriculture practices among suppliers

Sustainable agriculture reduces soil pollution and protects ecosystem services like pollination. It also boosts production system resilience, economic viability and social development. To support this, we created the Sustainable Agriculture Handbook for our Portuguese fruit, vegetable and flower suppliers. It guides improvements in land use, biodiversity, water and energy efficiency, while helping farms calculate their sustainability index. Over 200 farms have been integrated in this project since 2016, representing 67% of the volume of fruits, vegetables and flowers purchased by our Companies in Portugal.

Supplier payment practices

For many small food suppliers, managing liquidity can be a daily challenge. With them in mind, we created invoice‑advance agreements with financial institutions, allowing these suppliers to receive payments before the usual due date whenever they wish. The process is simple: the supplier anticipates the amount to be received, assumes a cost associated with our credit conditions, and their financial rating remains unaffected.

Throughout 2025, this solution gained strength and reach. In Portugal, Poland and Colombia, more than 200 suppliers in each country used this tool, finding a way to manage their businesses with greater security and flexibility.

Ultimately, this is about offering stability to those at the start of the value chain, ensuring that products reach our stores without jeopardising the financial health of producers. It is a partnership that builds trust, supports business growth and strengthens relationships in every market where we operate.

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