Organic

Since 2009, the REWE sales line in Germany has had a close partnership with Naturland, the largest international organic association, in order to strengthen organic farming and make organic products accessible to a wider market (more information under the section Initiatives and Memberships). The Naturland Guidelines exceed the legal requirements of the EU-organic production-regulation. Naturland also inspects products for social criteria and advocates for improved working conditions in risk countries, especially for imported products such as coconut milk, sugar, cocoa, tea, coffee, spices and honey. In 2022, the share of Naturland goods in the organic product range at REWE has increased to 342 products (2021: 337) – including trendy and vegan products such as pasta made from peas, various coconut products and soy drinks as well as various dairy products. Together with Naturland, REWE Bio is able to offer an increasingly broad range of products – demonstrating both regional and international diversity.

Since May 2023, REWE and Naturland have also been promoting organic farming with products from the fruit and vegetable range labelled as "trailblazers" by providing advice and financial support. These products come from farms that are in the process of converting their cultivation to organic farming, i.e. are already producing with increased effort according to organic criteria, but are not yet allowed to label and sell their products as "organic". With the additional revenue from the "trailblazer" products, these producers can refinance part of their conversion costs, and the REWE customers can support the farmers in taking the step from conventional to organic farming. Naturland, the largest international association for organic farming, provides technical advice for the "trailblazer" farms.

REWE in Germany joined the organic association Demeter in September 2020 in order to promote organic farming throughout Germany and agricultural structures in the region. Demeter producers work according to biodynamic farming methods and guidelines that go far beyond the requirements of the EU-organic production-regulation. The sales line is increasingly offering products labelled with the Demeter organic seal in its markets nationwide. In doing so, it follows the strict quality criteria of the association and focuses on Demeter suppliers in the region.

In order to be able to meet the increasing demand for organic products, more producers in organic agriculture are needed. This is why PENNY launched the Naturgut Junior-Helden (Junior Heroes) in Germany back in 2018. These are conversion goods from producers who do not yet have an official organic certificate due to the mandatory conversion period of one to three years (depending on the fruit or vegetable crop), but who already produce organically and therefore more expensively. The sales line therefore offers them a new marketing opportunity with "Naturgut Junior-Helden": They receive more revenue for this than for conventional goods, but slightly less than the price for organic products. This discount is passed on one-to-one to the customers and is also communicated on the label. This gives farmers a greater incentive to switch to organic farming. In this way, PENNY in Germany secures organic fruit and vegetables from Germany and Europe in the long term, because after the conversion period, the goods will be awarded the German organic seal. In addition, the sales line is actively campaigning for the introduction of a conversion seal at European level.

In 2021, the REWE Group joined the project “Gemeinsam Boden gut machen” (Make up Ground Together). Since 2015, this NABU project has been promoting farmers who intend to switch to organic farming or to expand their existing organic farm. Through this partnership, the REWE Group is making a contribution to improving water and soil and protecting biodiversity. At the same time, the supply of organically grown food produced in Germany is being increased. This is vital, because currently the German production of organic food does not cover the high demand.

The quality standards of many products from REWE Bio, which is REWE‘s private label for organic products, exceed the legal EU requirements, for example with the requirements of the Naturland seal (see section A Strong Partner for More than Ten Years: Naturland). In addition, the entire REWE Bio product range has been continuously expanded since 2013. In the reporting period, REWE listed more than 800 REWE Bio products in its product range (average over the year as a whole, 2021: 750). This results in a share of REWE Bio products in the sales value of REWE private labels of around 17 per cent (2021: 19) in the reporting year. The number of products under the private label REWE Bio + vegan increased from around 30 to around 45 vegan organic alternative products. The products are vegan, certified organic, and every purchase makes a contribution to the NABU climate fund – a fund whose aim is to restore peatlands in Germany and the EU (see Promoting Sustainable Consumption and Climate Protection in the Supply Chain).

In order to further increase the sales value and to raise awareness of customers to organic products, the "Million-Griffe Challenge" (Million Grips Challenge) was launched in the reporting year. As part of the "Gutes beginnt mit mir” ("Good starts with me") campaign, customers received thank-you coupons for various discounts in the REWE app for eight weeks starting on 17 January 2022 if twelve, 30 or 40 million REWE Bio products were purchased during this period. In addition, there were sustainable prizes such as BahnCards, e-cargo bikes or e-scooters to be won.

As in previous years, the local teams in the regions were expanded specifically for the REWE sales line in Germany (see also Regionalism). They are to increase the share of local organic producers in the markets and serve as contact persons for organic farmers and organic producers in the region.

PENNY in Germany has been selling the Naturgut brand since 2014, which has been focused exclusively on organic products since 2019. In 2022, depending on the promotion period, the sales line carried over 250 Naturgut products (2021: 200) in its product range – depending on the promotion product range, there are also additional promotional items that are only available temporarily. The share of Naturgut products in private label sales value stands at eight per cent, which is a slight increase (2021: 7 per cent). In 2020, PENNY relaunched the Naturgut packaging to further increase the signalling effect of organic products. Additional, green price labels have been introduced in the markets to make organic products visible at first glance.

In addition, the brand Naturgut Bio-Helden (organic heroes) stands for organic fruit and vegetables with minor defects in shape or skin, which are more common in organic farming but do not affect the quality and taste of the product. PENNY in Germany has been committed to preventing food waste in the upstream production stage since 2016 (see also Food Waste). Depending on the season, the sales line offers an average of between 24 and 31 different organic fruit and vegetable items.

With the foundation of “Ja! Natürlich” in 1994, BILLA was one of the pioneers for organic farming in Austria. Since 2021, the product range has remained unchanged, with its 1,100 different organic products offered on the shelves of BILLA, BILLA PLUS, ADEG and Sutterlüty. PENNY in Austria sells its 140 organic products under its private label “Echt B!O“.

At the beginning of 2021, BILLA launched „BILLA Bio“, an additional organic private label, as a supplement to “Ja! Natürlich”, particularly in the dry goods range and inconvenience products. The label stands for reliable organic quality at attractive prices. The food stands for controlled animal welfare, is GMO-free and certified with the EU organic logo. In the reporting period, the product range comprised 140 products and continuous to be expanded. In addition, the organic product range at industrial labels could be further extended.

Product Ranges in Austria (shares in per cent)

Since 2014, toom Baumarkt DIY stores has been selling certified organic private label products for the vegetable garden under the "Naturtalent" brand. These include peat-free soils that have been awarded the Bio-Grünstempel®, as well as organic fertilisers in the garden area that are suitable for organic farming.

In plant products, toom offers an extensive organic range of organic herbs, organic vegetables and organic seeds. Since 2018, all native fruit bushes and shrubs have come from organic production. In 2019, the company expanded its range of Fair Trees® Nordmann firs to include Fair Trees®-certified organic Nordmann firs. Together with the name-giving Danish foundation, toom is campaigning for good working conditions for cone pickers in Georgia – where 80 per cent of the seeds of all Nordmann firs come from. Another objective is to support social projects (see also Focus Raw Materials – Non-Food and Services).

Since the reporting year, organic potted roses have complemented toom‘s extensive organic range. In the future, the range of organic ornamental plants is to be further expanded.

In 2022, the range of organically grown plant products included over 635 items (2021: 628). This corresponds to a share of organic certified plant products in the private label sales value of 3.3 percent. In addition to the EU organic logo, all toom organic plant products also bear the PRO PLANET label "For more environmental protection".