Specialty beverage retailer Getränke Hoffmann has formed a buying alliance with local German supermarket chain Edeka.
In a statement, Radeberger-owned Getränke Hoffmann, which operates 600 stores around Germany, said the tie-up will enable the retailers to jointly source products from international and national beverage suppliers.
It said the partnership was its “response to intensifying competition in the German beverage market, which is putting increasing pressure on specialty store operators”.
Getränke Hoffmann, which is owned by brewery group Radeberger, added the alliance looked to ensure the “long-term viability” of the beverage specialty market channel.
Commenting on the news, Mario Benedikt, managing director of Getränke Hoffmann, said “we work in a highly competitive environment” and “good prices can only be offered by those who receive competitive terms from their suppliers”.
The purchasing cooperation, pending approval by antitrust authorities, is expected to provide consumers “alternative shopping venues” and “consumer-friendly prices”, Getränke Hoffmann said.
The alliance will focus on buying products from “internationally and nationally active beverage manufacturers”, the group said, though local and regional suppliers will continue to be negotiated individually by Getränke Hoffmann and Edeka as before.
The two retailers will also continue to manage distribution separately.
Benedikt added: “It's no secret that food retailers and beverage retailers sometimes purchase their goods under different conditions: This is where we want to address this with our cooperation with Edeka in order to be able to offer competitive prices in the future – and thus maintain a viable perspective for our sales channel.”
He also stressed the importance of specialty retailers as outlets that provide consumer choice and sustainability.
Benedikt explained: “Unlike other retail formats, we focus on one product group – beverages. We can represent these in their entirety in our branches – and thus also provide space for smaller, regional beverage manufacturers' assortments that would no longer find a place in the often primarily nationally oriented food retail structures.”
Specialty drinks retailers also provide “crucial” sales points for beverages in reusable containers, he added.
The partnership will be limited to “defined beverage manufacturers”, and is not expected to impact competition between Getränke Hoffmann and Edeka, Benedikt said.
“We will cooperate where it makes sense for both sides: in the purchasing of beverages from internationally and nationally active beverage manufacturers.”
