European Retail Alliances Survey for DG Competition: Results

The surveyed companies N=39 Agreement covers: 82 % only Brands 2% only PL 16% NA in % of all questionnaires

Agreement covers In % of answers per questions

Buying groups – Retail alliances? Negotiate rebates for services (B.3) ? Buy products (B.4)? Ranging from 92% to 74% per alliance in % of all mentions across alliances

Buy Products In % of answers per questions

Alliances negotiate rebates for services for members? In % of answers per questions

Do alliances provide marketing services for their members? Ranging from 86% to 50% per alliance in % of all mentions across alliances

Marketing services provided for their members? In % of answers per questions

Services provided: Business continuity « Failure to engage with the alliance has led to punitive action in the form of delisting and cancelled promotions at member, national level » Ranging from 93% to 89% per alliance «Reaching an agreement with the alliance is granting business continuity rather than a pre condition to start selling » in % of all mentions across alliances

Services provided: Business continuity In % of answers per questions

Services signed for … in % of all mentions across alliances

Reaching an agreement with alliance a condition to sell products to its individual members Ranging from 83% to 41% per alliance « if there isn’t a global contract there is no local negotiation and no contract » « local negotiations are frozen until an agreement is reached with the alliance. Innovations and promotions are boycotted » in % of all mentions across alliances

Reaching an agreement with alliance a condition to sell products to its individual members In % of answers per questions

Have you been subject to delisting or threat of delisting by one or several members of alliances? Ranging from 78% to 35% per alliance Pressure exercised regardless of size of companies 74% of companies have been exposed at least once by one alliance

Subject to delisting or threat of delisting In % of answers per questions

Have Alliances shared the respective terms and conditions negotiated individually with your company in the different countries Ranging from 35% to 15% per alliance 42% of companies have been exposed at least once by one alliance in % of all mentions across alliances

Shared their respective terms and conditions In % of answers per questions

Have Alliances shared… …their Retail sales price in different channels/ countries? …each other’s price build up/margin? Ranging from 29% to 21% per alliance Ranging from 24% to 16% per alliance in % of all mentions across alliances

Shared their Retail sales price? In % of answers per questions

Shared each other’s price build up/margin? In % of answers per questions

Have Alliances made other attempt to disrupt business to gain an advantage… Ranging from 70% to 37% per alliance 61% of companies have been exposed at least once by one alliance in % of all mentions across alliances

Other attempt to disrupt business to gain advantage In % of answers per questions

Have Alliances requested … Payment for services not delivered? Non-service related payment request? Ranging from 73% to 29% per alliance Ranging from 63% to 17% per alliance, 76% of companies have been exposed at least once by one alliance 55% of companies have been exposed at least once by one alliance in % of all mentions across alliances

Payment for services not delivered? In % of answers per questions

Non-service related payment request? In % of answers per questions

When are rebates paid? Others w/settlement next year end of semester after services delivered per installments in % of all mentions across alliances

When are rebates paid? In % of answers per questions

Of the total rebates, what % correspond to measurable counterparts in 2010? Ranging from an average of 36% to 80% per alliance in % of all mentions across alliances

Value to your business of the services provided in % of all mentions across alliances and all services

Value to your business of the services provided In % of answers per questions