REWE Group Sustainability Report 2017

Regional Products

GRI 204-1: Proportion of spending on local suppliers

REWE Group defines regional suppliers as those individuals who are included in one of various regional concepts. The regional assortments include a high percentage of fresh fruit and vegetable products that are sold in stores on a seasonal basis.

With the REWE Regional concept, a Germany-wide brand for regional products was created in 2012 as a way of clearly identifying these products. The region from which a product comes is shown on the packaging: as a politically defined area (i.e., a German state), a cultural region (i.e., the Franconia area of northern Bavaria) or a traditional cultivation region (i.e., the Altes Land area that straddles parts of Lower Saxony and Hamburg). Examples include sausage and eggs from North Rhine-Westphalia or Bavaria, apples from Altes Land and North Sea shrimp from Dithmarschen. The regional assortment performed very well during the reporting period. The number of products rose sharply, and revenue as measured by sales value jumped by more than 25 per cent from 2016 to 2017.

REWE Regional (Germany) 2015 2016 2017
REWE stores that sell REWE Regional items 3,0761 3,1651 3,2781
Customer contacts2 76,190,402 105,371,626 115,182,718
Sales value (gross, in euros) 140,725,457 206,354,705 260,107,464
Number of products3   314 465 607
1
Only stores that have sold more than 200 REWE Regional items during the year (values for 2015 and 2016 have been adjusted accordingly).

2
Customer contacts are based on scan totals for individual products.

3
Applies only to products of which more than 200 items were sold.

Regionalfenster (Regional Window)

As another way of promoting regional products, REWE Group became a charter member of the Trägerverein Regionalfenster e.V. in 2012. Following a test phase in February 2013, REWE Group has been applying the group’s regional window concept to selected products in PENNY and REWE stores since 2014. The label provides consumers with verified information about the origin of ingredients and the processing location. In this manner, the regional window creates transparency for customers that complements store-brand-specific information. At REWE, the number of regional window items rose from 260 in 2015 to 368 in 2017.

REWE Regionalfenster Items (Germany) 2015 2016 2017
Number of products1 260 288 368
1
Applies only to products of which more than 200 items were sold/REWE.

PENNY expands the regional window to about 40 items when they are available in Germany. These products include cucumbers, carrots, asparagus and tomatoes that frequently come from one supplier per region. As a result, nearly all items produced in Germany are identified as regional window products. As an additional way of highlighting a product’s origin, PENNY identifies regional fruit and vegetables by German state or agricultural or “pleasure region” like the Oldenburger Münsterland area of north-western Germany. Transparency about a product’s origin is one part of PENNY’s regionality pledge, a promise that also covers its commitment to freshness by employing short transport distances and promoting domestic producers.

In Austria, an array of regional concepts is also being employed. Following its introduction in 2010, the A+A label identifies products that are entirely produced and processed in Austria and that use only ingredients from Austria (a deviation of 2 per cent is permitted to address such issues as the use of spices). A+A is used in BILLA, Merkur and PENNY stores in Austria.

Regional Concept A+A (Austria) 2015 2016 2017
Stores that sell A+A products1 1,352 1,350 1,496
Customer contacts 1,016,435,302 1,042,598,403 1,034,749,171
Sales value (gross, in euros) 1,392,162,608 1,435,381,895 1,454,493,895
Number of products3 5,881 5,945 5,746
1
Only BILLA, Merkur and PENNY in Austria.

2
Customer contacts are based on scan totals for individual products.

3
Applies only to products of which more than 1,000 items were sold.

Since September 2014, another regional concept for fruit and vegetables has been used in the stores of BILLA, MERKUR and Sutterlüty. It is called “Da komm ich her” (I’m from Here). During the reporting period, the fruit and vegetable items sold on a seasonal and regional basis increased to 244 and the number of customer contacts to over 83 million.

Regional Concept “Da komm ich her”1(Austria) 2015 2016 2017
Customer contacts2 61,169,000 80,025,000 83,726,000
Sales value (gross, in euros) 92,116,000 131,852,000 144,110,000
Number of products3 214 223 244
1
BILLA, Merkur and Sutterlüty in Austria.

2
Customer contacts are based on scan totals for individual products.

3
Only products that produce more than 50 euros in revenue annually.

Under the PENNY store brand “Ich bin Österreich” (I’m Austria), products that are made according to typical Austrian recipes and contain only Austrian ingredients are sold. At the end of 2017, the range had 635 products, compared with 713 in 2016. The products generated total revenue of more than 131 million euros in 2017.

Local

When the word “local” is used, it refers to products that generally come from small suppliers or sellers of agricultural items who directly serve a regionally limited number of stores. To further boost the number of items produced locally, REWE has appointed locality officers. These officers establish contacts between REWE stores and local producers and suppliers. They also perform such jobs as attend locality conferences where suppliers can present their goods. There were 12 locality officers during the reporting period. One successful example of the promotion of local suppliers is the REWE Landmarkt (country store) concept in the Region Central. Farmers in the organisation Vereinigung der Hessischen Direktvermarkter e.V. (VHD) sell their products under this name throughout the state of Hesse. At the end of 2017, 278 stores sold more than 3,300 Landmarkt items.

Landmarkt, Hesse (Germany) 2015 2016 2017
Stores that sell Landmarkt items 242 2671 278
Customer contacts 7,880,515 8,077,505 8,621,728
Sales value (gross, in euros) 24,170,486 26,428,966 31,492,765
Number of products3   over 2,900 over 2,900 over 3,300
1
The number of markets selling REWE Landmarkt items indicated for 2016 was subsequently adjusted due to a survey error.

2
Customer contacts are based on scan totals for individual products.

3
Products on sale on the basis of item number (NAN), starting in market entry year.

In addition, some independent retailers have created regional product ranges. In one reflection of this work, consumers will find many regional products being sold under the name “Wir aus der Region” (We from the Region) in the 14 stores run by REWE Richrath in the Cologne area.

More topics:

GRI 102-11

Risk Management

GRI 204

More Sustainable Product Range

GRI 204-FP1

Raw materials

GRI 204-FP2

Organic and PRO PLANET

GRI 301

Materials and Packaging

GRI 304

Biodiversity

GRI 308

Environmental Standards in the Supply Chain

GRI 412, 414

Social Standards in the Supply Chain

GRI 416

Customer Health and Safety

GRI 417

Promoting Sustainable Consumption

FP10

Animal Welfare