Rewe, the Cologne-based retail group, has consolidated its position as the third largest retail operator in Europe with the acquisition of Curti & Co, the Swiss group which owns the Bon appétit chain. Switzerland will be the thirteenth European market in which Rewe operates.
Rewe now owns 100 per cent of Curti & Co, which in turn owns 53 per cent of Bon appétit. Rewe paid SF78.70 (€51.2) per Bon Appétit group share for its stake, and has said it will seek to buy up the rest of Bon Appétit's shares, offering SF60.80 per share.
"Switzerland is a very interesting market. Bringing Bon appétit into our group allows us to bridge the gap from Germany to Italy or from France to Austria in our country portfolio," said Rewe CEO Hans Reischl.
Bon appétit is Switzerland's number three supplier of food products to the foodservice and retail sector under the Usego (wholesaler), Prodega CC (cash & carry wholesale supplies), Howeg (catering supplies in Switzerland) and Aldis (catering supplies in France) brands. It also has a number of retail operations: Pick Pay (discount stores) and Primo/Visavis (franchise corner stores). Total group sales were SF3.17 billion (€2.1bn) in 2002.
Like Bon appétit, Rewe operates in both the retail and wholesale sectors, with supermarkets (Rewe, HL, miniMAL), discounters (Penny) and hypermarkets (toom, Globus). It also has a number of non-food retailing operations.
Rewe said that it would retain Bon appétit's various store brands, but that it would refit many of the outlets in a bid to develop the businesses further.
Among the plans for Bon appétit's business is an extension of the wholesale business to include independent store owners, as well as adding further customers in the restaurant and catering sectors.
"Rewe is a perfect fit for the Bon appétit group," said Beat Curti, spokesperson for Curti & Co. "In the competitive Swiss food retail market, Bon appétit partnership with a financially strong owner with proven knowledge in the same business sectors will increase the pace of the group's new strategy and restructuring efforts at the same time as strengthening the independent retailing environment in Switzerland."
As a result of the acquisition of the Swiss group, Rewe's foreign sales will increase to over €10 billion, accounting for 32 per cent of total group food sales.
Rewe's entry into the Swiss market is a further step in its drive to internationalise its business, a strategy which has thus far worked very well. "In principle, we gear our business to our customers, i.e. to country-specific conditions," said Reischl. In the case of Switzerland and France, this strategy focuses on independent retailers and wholesale caterers in their local areas of business.