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Carrefour and Tesco will end their purchasing alliance

2021-06-08T15:46:05.883Z


They have decided to continue their search for sources of supply “independently” and will focus on “their own opportunities”.


Carrefour and Tesco distributors will end their alliance at the end of the year, in particular on joint purchases of products for their own brands, a partnership which had been limited by the Competition Authority.

Read also: Haute-Savoie: an investigation opened after racist insults against a Carrefour cashier

The two companies "

have decided not to extend their purchasing alliance beyond the three-year operational framework agreed in 2018, and the alliance will officially end on December 31, 2021,

" a statement from Carrefour announced on Monday. They have decided to continue their search for sources of supply “

independently

” and will prioritize “

their own opportunities, building on the experience gained and the progress made during the implementation period of the alliance.

".

In December 2020, the Authority asked the two distributors to commit to several restrictions making it possible to respond “

fully and effectively

” to “

competition concerns

”, notably having to exclude from their agreement the purchase of agricultural products acquired mainly from French and European producers.

The gendarme of competition feared that the agreements concluded between the groups for their private labels would lessen competition between them, by leading to “

homogenize

” these products.

Read also: Tesco: 2020-2021 net profit multiplied by six thanks to disposals

The Authority had done the same with four distributors, Casino, Metro, Auchan and its franchisee Schiever, to "

respond to the risks of harm to competition

". This decision was the first rendered within the new framework set by the Food Law (Egalim) of October 30, 2018, which allows it to suspend purchase agreements if they cause harm to competition. Casino has since announced that it is ending this alliance and has concluded another with Intermarché, valid for five years and relating in particular to the purchase of products from major international manufacturers.

Source: lefigaro

All business articles on 2021-06-08

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