German retailer Rewe Group has begun to sell bananas under its own label, in a highly significant move which will be of grave concern to the country's major banana importers.
Low prices, tight margins, a notable decrease in demand and large volumes of fruit have all conspired over the past year to remove much of the value from the banana business in Germany, the result being a hugely challenging commercial environment and a sharp downturn in the profitability of major import and category management programmes.
According to industry weekly Fruchthandel, the poor market situation is not expected to improve in the near future and the country's importers are understood to be watching developments at Rewe with interest.
Rewe operates around 3,000 supermarkets in Germany, as well as some 1,000 stores in Austria under its Billa banner.
The group also has 300 Extra supermarket outlets in Germany, with 3,000 Penny discount stores spread across Germany, Austria, Italy, Romania, Hungary and the Czech Republic.
