Following months of speculation, Co-op Wholesale and Costcutter Supermarkets Group (CSG) have announced the signing of a new supply agreement.
Co-op started supplying branded and own-label goods to Costcutter stores in 2018 under its former name Nisa. The contract was extended to 31 December 2025 when Bestway acquired the Costcutter business at the start of 2021.
With the agreement due to come to an end, reports earlier this year suggested that Bestway was looking for a new supplier for its Costcutter symbol group.
However, in a joint statement today, the companies stated that their latest deal marked the start of a new opportunity, bringing the “collaboration and strength of both businesses, to unlock greater value for independent retailers”.
Katie Secretan, Managing Director of Co-op Wholesale, commented: “I am delighted to announce this new agreement, which goes further than just a supply deal; we are jointly focused on true partnership as the key ingredient for mutual success, as we collectively support Independent Retailers to grow through our market-leading propositions.”
Dawood Pervez, Managing Director of Bestway Wholesale, added: “The continuation of our collaboration will see Costcutter stores continue to benefit from the market-leading full-service convenience model from Co-op Wholesale, including access to the iconic and best-in-class Co-op own brand products. Both businesses are committed to working together to continuously improve the offer, supporting retailer growth in an evolving market.”
The length of the new agreement has not been confirmed.
NAM Implications:
- Some reassuring continuity for independent retailers.
- Some additional pooling of Bestway and Co-op Wholesale talent and expertise.
- Better than radical change in unprecedented times…
