European Retail Alliances: who are they?

In the bustling aisles of Europe’s supermarkets, behind the scenes essential organizations called retail alliances are working to protect consumers from rising prices and shrinking choices. Often misunderstood, these alliances are in fact a vital counterbalance to the immense market power of global suppliers. As EU policymakers grapple with rising costs, supply chain disruptions, and the fragmentation of the single EU market, retail alliances offer a pragmatic, competition-compliant solution that delivers tangible benefits to consumers, retailers, and even suppliers.

The power imbalance between supermarkets and processed food, unlike perishables

Retailers operate in one of the most competitive and low-margin sectors of the economy. Unlike the global giants that dominate the supply of everyday products (think Anheuser-Busch, Mars, Mondelez or Unilever) retailers must fight tooth and nail for every customer. Their margins are razor-thin, and consumer loyalty is fleeting. In many key product categories, a handful of multinational suppliers control the majority of A-brands. These are the must-have products that consumers expect to find on shelves. Without them, retailers risk losing footfall. But negotiating with these suppliers, it is often a “David versus Goliath” scenario with global manufactured bands. They often operate in over 180 countries while even the largest EU retailers are active in just a few, unlike the fresh produce sector.

Retail alliances to rebalance the playing field with the multinationals

Retail alliances are voluntary cooperation agreements between retailers and wholesalers across different EU countries. They do not negotiate with farmers or SMEs but focus on large multinational suppliers of consumer-packaged goods. Their focus Is with large volumes of products, as they need sufficient products to serve each retailers’ stores. Their goal is to negotiate better terms (pricing, logistics, services, and innovation support) so that retailers can offer better prices and more choice to consumers.

These alliances operate within the strict boundaries of EU competition law. In fact, the European Commission has repeatedly confirmed that such alliances have pro-competitive effects. They help reduce consumer prices by as much as 12%, according to a study conducted by the French business school INSEAD in 2025. Souces: Eurocommerce, INSEAD. Pictures: Eurocommerce.

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