Friday, October 26, 2012

Case study: food distribution in Eastern Europe

The leading German retail company, Rewe has several brands in Eastern Europe. One of them is 'Penny Market', a discounter chain. This story is about Penny's food logistics.

About Rewe Group
"With a turnover of more than 48 billion euros and about 323,000 employees (2011), REWE Group is one of the leading trading and travel and tourism companies in Germany and Europe. Since its foundation in 1927, the cooperative Group has developed on the basis of sustainable and long-term growth."

penny market

Rewe Group has several well-known retail store brands in Europe: Billa, Rewe, Bipa, Merkur, Adeg, and last, but not least: the Penny Market. Penny is the most successful European brand of Rewe, focusing on Central- and Eastern Europe and Italy. Penny is the market leader discounter chain in the Czech Republic and Romania, and the nr.2 player in Hungary. The 1,200 European Penny stores achieved 3.4 billion euros turnover in 2011.

Karcag Industrial Park
Karcag Industrial Park is a low-cost, food industry focused business park in Eastern Hungary. The location's strong food business traditions, focused education and excellent transportation connections also supports the food logistic activities.

Penny Market, Karcag

Penny Market Distribution Center in Karcag
The Penny's Eastern Hungarian Distribution Center was launched in 2008, as the 2nd distribution center in Hungary. The company employs 150 people in the 19,000 sq.meter (~205k sq.feet) facility, where goods are not only distributed, but also received from domestic and international suppliers and get prepared for distribution.

Finally, here is a short video about Rewe's world:

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