European Marketing Distribution

European Marketing distribution also known as EMD is a buying alliance for independent retailers. The alliance is composed of 14 members encompassing 400 players in the grocery retail sector covering 22 countries and 55,000 points of sales. The alliance enables the retailers to beneficiate from advantageous conditions while also participating in EMD projects.

The firm achieved a turnover of €184 billion in 2018.

EMD members regroups particularly retailers from the European region as follows: (non-exhaustive list)

• Markant Oesterreich GmbH, Vienna
• Markant Syntrade AG, Pfäffikon
• Markant AG, Pfäffikon
• Markant C.E.S. s.r.o., Prague
• Markant Slovensko s.r.o., Bratislava
• Dagrofa, Brøndby
• Euromadi Iberica SA, Esplugues
• Tuko Logistics Osuuskunta, Kerava
• EMC Distribution S.A.S., Paris

For more than 25 years, EMD deals with manufacturers along with retailers with the aim to enhance new markets within the European frame. The platform not only enables members to meet but also provide new opportunities for suppliers.

Since various EMD members has brands in their portfolio, EMD has a long record of dealing with manufacturers having branded products. The buying alliance hence provides a platform where suppliers having brands can expand their business network.

Furthermore, the firm sources private label products which can be great opportunities for private label manufacturers. Indeed, EMD sources private label items for its members. The sourcing is done through EMD’s 7 steps sourcing process.

The buying alliance caters for retailers as well by offering a wide rage of EMD’s own labels which have been carefully developed for retailers matching high standards and expectations of the members.

EMD has also Eurolabel brands which are only for EMD-members. These particular products are made only after exclusive agreements with EMD while only specific suppliers have the permission to produce these EMD Eurolabel products.

Some examples of Eurolabels are as follows:

• Banderos
• Powerking
• Fraiche D’or
• Premier
• Monte Castello
• Freshgold
• EMDBRAU
• Fresca d’oro
• Spice field
• Minel
• Omega

Confirming its expansion, in 2017 EMD was joined by Russian retailer Lenta which has a turnover of 4.5 billion euros followed by Australian retailer Woolworths having an external turnover of 216 billion euros as well as Globus the German hypermarket chain.

The major reason why Woolworths joined EMD is mainly for a private label business only in order to promote its private label product ranges. Through this commitment, Woolworths is able to provide its customers with more choice of own brand products. Woolworths added 38,000 million euros to the purchasing power in 2017. EMD became the first intercontinental shopping alliance when the Australian distributor Woolworths joined the organisation.

Also, Lenta joined the alliance to ensure savings by expanding its goods sourcing base. The significant savings concerns primarily the supply chain.

In the year 2016, the members of the buying organization noticed an increase of 4% in sales for their business volume in Iberia.

As of January 2018, Asda quit the buying group in order to strengthen its direct to supplier model.  However, Asda stated that EMD has been the right partner for them by helping them strengthen their buying capabilities in the last few years.

Presently EMD’s retail network covers 4,000000 square meters, with 14% market share in Europe. Its turnover in Europe accounts for 160 billion euros while in Australia and New Zealand the figures are 38 billion euros.