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France: Aldi signs tri-partite contracts for its drinking milk

Discount Retail Chain Aldi France (privately owned) announced, for the first time in its history, the signing of tripartite contracts with Laiterie de Saint-Denis-de-Hôtel and Sodiaal. For the moment, only the dairy sector is concerned, but eggs and meat could be next. Aldi discount format is dominated by own private label brands, signed a tripartite contract today with Laiterie de Saint-Denis-de-Hôtel (LSADH) and the Association des Producteurs du lait du Bassin Center (APLBC). This will be followed, in mid-April, by a similar engagement with Candia (Sodiaal). These agreements will relate to a milk price of 370 euros / 1,000 liters and 385 euros / 1,000 liters, all premiums combined, for a period of 3 years. Thus, 6 of the brand's 7 drinking milk reference SKUs, or 85% of the Aldi private label brand offer, will be affected (105 million liters). The last product, organic milk, could be included in the process later.

Cattle and eggs could follow In addition, Aldi also works with a dairy located on the German border Aolait, whose collector is German. A tripartite partnership should also be signed with the two actors in the coming weeks. These commitments, which are part of the Egalim law and follow on from the recommendations of the Serge Papin report, could be extended to other sectors. “We are going to do this with the most suffering sectors such as cattle and eggs. Our goal is to offer an Aldi point of sale 15 minutes from every French household. A density of stores and volumes distributed, which will allow us to play a preponderant role in the structuring of the sectors ", confides Jean-Marie Malbranke, Vice-CEO of Aldi France.

While the dairy sector expects progress from distributors on the upgrading of private label products, the announcement of Aldi, which achieves 95% of its turnover with private labels, could resonate with other brands.

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