City trading group signs food and beverage deals

Procurement contracts between the city's leading food and beverage retailers and multinational brands were signed at the China International Import Expo on Friday.

The Large Retail Purchaser Alliance of the Shanghai Trading Group reached 56 preliminary purchasing deals as of Thursday covering personal care and beauty, food and drink and daily groceries.

Purchase intent worth 3.7 billion yuan (US$521 million) was reached between members of the alliance and overseas brands, according to the trading group, and about two dozen contracts were signed on Friday morning.

Shanghai Vice Mayor Hua Yuan said at the signing ceremony that local retailers will fully leverage the influence of the expo to push consumption upgrade and build up a long-term mechanism to establish trade ties with leading overseas brands.

He said the purchaser alliance would also continue to introduce high quality overseas products for shoppers not only in Shanghai but in the Yangtze River Delta region.

Since 2018, the retail purchase alliance has doubled from its original 20 members including supermarket chains and home item retailers such as Red Star Macalline, Metro Commerce Group, Olé Supermarket, Shanghai Yuyaun Tourist Mart Group Co and Shanghai Greenland Business Group Co.

Bailian Group said it is seeking closer ties with beauty and personal-care groups such as L'Oréal, Shiseido and Estée Lauder while snack food company Lyfen eyes more product development opportunities with Turkish food suppliers and cocoa producers in Southeast Asia.

Zhong Xiaobing, general manger of the local Lianhua supermarket chain, aims to raise the proportion of imported goods from the current 5 percent to 10 percent, to include more niche categories such as cooking materials and home hygiene products.

Representatives from the alliance say sales of imported goods have been gradually recovering and see even greater potential in the coming year as demand picks up in categories such as condiments, seasonal food and beverage, and daily groceries.

Freshippo's deal with Chilean fruit suppliers Garces Fruit reached during the CIIE will expand offerings of cherries, plums, and prunes to local shoppers.

A direct fruit import base has been set up in Chile to allow easier sourcing of fresh fruit, cutting the overall supply chain cost by about 5 percent.

Purchasers from local on-demand delivery site Dingdong have been seeking beef, fruit and wine suppliers during the CIIE.

Sourcing intent worth more than 100 million yuan has been reached with suppliers from Australia, New Zealand, Chile, covering dairy products, wine and fruit.