Spanish retailers DIA and Eroski have announced that Red Libra Trading Services, a business created to enable joint negotiation of both private label and manufacturer brands, is being wound up.
The two retailers issued separate statements outlining that the purchasing cooperation will end on 22 May 2018.
Red Libra Trading Services was established last year to negotiate on behalf of both DIA and Eroski in order to ‘maximize the quality-price relationship offered to the consumer’, DIA said in a statement.
‘Both DIA and Eroski will continue maintaining totally independent commercial policies,’ it added.
Independent Policies
In its statement, Eroski said that, ‘the two companies have always maintained their commercial policies completely independently’, so the end of this collaboration will ‘not be reflected in the commercial proposition of Eroski’.
It added that it will ‘continue working to offer the best value for money to the consumer, advancing in a strategy committed to a healthier diet and a more sustainable consumption’.
Last April, DIA and Eroski unveiled the 50/50 venture, based in Madrid, installing Beatriz Santos, commercial director of Eroski as non-executive chairperson, and Susana Pagés, commercial director of DIA’s private label operation as director general.
The creation of the firm was to 'improve competitiveness in the private labels offering, gaining in efficiency to provide a better price-quality ratio for customers', a Dia statement said at the time.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
