Major suppliers with direct lines into retail join Dutch group Zon

Dutch cooperative the Royal Cooperative Grower Union of South-East Netherlands, known more commonly as Zon, has added several new members – all of them major suppliers of fresh produce with their own large-scale retail contracts – in a sign of further consolidation in the Netherlands’ fresh produce supply base.

According to local reports, Vrankenhof, Osch groenteproducties, Compliment, Starberry and Bekerhof have all taken the decision to market their products via the cooperative, instead of independently as they do currently.

Zon director John Willems told Groenten & Fruit: “It is not our intention to throw away existing sales channels. We want to do well enough that we can expand those channels. That can then create opportunities for our other members.”

Willems refused to confirm or deny, however, that Zon would begin to supply the retail chain Jumbo, which was not previously a direct customer but does source but does buy produce from at least one of the new members.

Jumbo is understood to have sourced jointly from suppliers together with Edeka and Picnic, suggesting there is something of a race to achieve commercial scale on either side of the supply-demand equation to enhance buying and selling power.

Last week, Eurofruit published an exclusive interview with David Markowski, CEO of Dutch supplier The Greenery, in which he suggested there would be a dramatic consolidation among fresh produce suppliers in the Benelux.

The Greenery continues to explore the possibility of a strategic partnership with Belgian group BelOrta to supply customers together.