The Eroski and DIA groups have announced a new tie-up that will result in a new company focused on the joint purchasing of own label products.
The new 50:50 joint venture, Red Libra Trading Services, will be “responsible for trading private labels with suppliers and the purchase of other materials and supplies they need in order to carry out their activity”.
The two sides said the JV aims to improve the own label offer of both groups, helping boost efficiency and the consumer offer. The JV will not handle purchasing of perishable fresh goods, oil, milk, and eggs. The groups also said their sales and marketing policies will remain independent of each other.
Red Libra will be based in Madrid, will initially employ more than 50 staff, and will become functional as of 24 April 2017. Susana Pagés, currently the Commercial Director of own label at DIA, has been named as its General Director; Beatriz Santos, Commercial Director of Eroski, has been named as non-executive Chairwoman.