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

Local agricultural producers

Over recent years, we have made origin an essential element of the shopping experience. In Poland, Biedronka has invested in closer relationships with small local producers. What began with a group of 60 producers in 2021 has grown steadily into a network of more than 260 by 2025. In Colombia, Ara has placed local producers at the heart of the in‑store experience with the creation of “La placita de Ara”, a space right at the entrance where fruit and vegetables take centre stage and tell stories of origin, reinforcing an identity deeply rooted in the territory. By 2025, the initiative already brought together more than 100 producers. In Portugal, Pingo Doce has been giving visibility to national production through communication that goes beyond the store environment and extends to social media, packaging and specialised fresh‑produce leaflets – affirming, with every choice, the value of local products.

The future of food production

On the ground, the signs of climate change have become impossible to ignore. Many suppliers are already feeling the impact of extreme temperatures and increasing water scarcity, leading them to rethink how they produce in order to ensure continuity and quality. From this adaptation, new responses have emerged: sourcing products such as bananas, cocoa or rice from other origins where the climate is more favourable; investing in more resilient varieties without giving up sustainable practices; and transforming raw materials into higher‑value, longer‑lasting products, such as preserves or dehydrated foods.

Promoting sustainable practices

Caring for the land is also caring for the future. Sustainable agriculture helps reduce soil pollution, protects essential ecosystem services – such as pollination – and makes the entire production system more resilient, viable and socially balanced. It was with this principle in mind that the Sustainable Agriculture Manual was created, designed to support Portuguese suppliers of fruit, vegetables and flowers. The manual sets out concrete pathways to improve land use, promote biodiversity and increase water and energy efficiency. Since 2016, more than 200 farms have joined this journey, representing 67% of the volume of fruit, vegetables and flowers purchased by our Companies in Portugal.

Supplier payment practices

For many small suppliers in the food sector, liquidity management is a daily challenge. With this in mind, we created invoice prepayment arrangements with financial institutions, enabling payments to be received ahead of schedule in a simple and transparent way. Suppliers can bring forward the amounts due to them, incur a cost aligned with our credit terms, and preserve their financial rating. This solution scaled up in 2025, with more than 200 suppliers in Portugal, Poland and Colombia making use of this instrument. Essentially, we are strengthening stability at the start of the value chain, ensuring store supply without compromising the financial health of producers – a partnership that builds trust and drives growth in the markets where we operate.

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