Strategy of the Project
As part of its commitment to become the leader of the food transition for everyone, Carrefour invests in strengthening its local ecosystem and in the relationship with Romanian producers, in order to offer customers fresh, local food at affordable prices.
Six years ago, Carrefour Romania created a unique and sustainable collaboration model, by founding the first agricultural cooperative in Vărăști. Until 2022, Carrefour has expanded its local footprint by launching partnerships with three new cooperatives, in Zărand, Brezoaele and Însurăței. Later, in 2023, the retailer added six new cooperatives to its portfolio: Fierbinți, Beiuș, Ostrov, Târgu Secuiesc, Huși and Voinești.
Seasonal fruits and vegetables from Carrefour’s ten agricultural cooperatives who are partners can be found on the retailer’s shelves under the label Our Garden. The products sold under this brand are grown locally, by more than 240 families of farmers and agriculturists with tradition, who benefit from support in terms of planning and harvesting. Our Garden is a circular program that puts fresh fruits and vegetables on the shelves of over 430 Carrefour Romania stores within a maximum of 24 hours from harvest. The company aims to enter into partnerships with at least two new cooperatives in the next two years.
With the largest portfolio of local producers in the fresh food area, Carrefour supports more than 1,300 farmers nationwide, of which ~700 are ultra local producers, offering solutions to streamline the production process, transport and shelf visibility.
Objectives
One of the objectives of the program is to develop relationships with local suppliers. In recent years, one of the constant consumption trends reveals customers’ preference for local products (in partial overlap with traditional and/or ecological products). Carrefour relies on partnerships with local producers, which are considered a long-term investment. Another strategic objective refers to the expansion of the network of ultra local suppliers. Carrefour Romania currently benefits from commercial relations with ~700 ultra local suppliers, farmers who deliver their products to the store, within a maximum radius of 50 km from the farm. Thus, the development of a local ecosystem of suppliers and partners is considered, in which the local footprint represents an essential strategic pillar, both on the demand side and on the consumption side.
Business Alignment
The company’s intention is to supplement the number of local suppliers, mainly in the agricultural sector, to cover the market demand with a varied offer of Romanian products. Carrefour is, from this point of view, on an accelerated development trend: of the total of 4,000 suppliers with which the company works, ~ 93% are Romanian partners.
Statistics/ Market Analysis
The retail industry is increasingly forward-looking, embracing carbon footprint offsetting, healthier eating options, reducing food waste and increasing the number of locally developed private labels, all of which are trends that continue to take extent in Romania as well.
Carrefour considers the impact on the environment when discussing solutions with partners for their cultures. In programs like We Grow Romania BIO, the environmental impact is an essential criterion in the assistance they offer to farmers, to make the transition to ecological crops. Regarding the relationship with the partner cooperatives, the retailer envisages multi-year projections, on a case-by-case basis, where it discusses options such as conversion to organic for certain crops.
Impact and results & Communicating the Project
The results of Carrefour Romania in terms of the local footprint are significant: 19 cooperatives, of which 15 are suppliers and ten are partners (Our Garden in Vărăști, Zărand, Însurăței, Brezoaele, Fierbinți, Beiuș, Ostrov, Târgu Secuiesc, Huși and Voinești). The products from partner agricultural cooperatives are marked on the shelf through dedicated branding and made known to the general public through marketing campaigns, partnerships with media representatives or various public figures, recognized in the online environment.
No comment yet, add your voice below!