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The planned Tegut sale by Migros not only impacts branches, customers and employees, but also regional suppliers. What's next for her?
Region – Whether home-made blood sausage from Flieden, beer specialties from Hünfeld, bread from Haimbacher grain, coffee roasted in Fulda or castle caraway from Schlitz: all of this is currently on the shelves of the Tegut branches. But for how much longer? With the Announcement by Migros that it will sell the Fulda grocerthe uncertainties have begun.
“It was a hard blow for us when we found out about the sale,” says Christoph Jestädt, founder of the Wiesenkiez company from Niederrode, whose products such as wine and berry spritzers are sold at Tegut. The grocer was a partner from the very beginning: “They were the first to give us the chance to freely present our range.” Companies such as Edeka, Rewe and Denns are now also trading partners. Jestädt hopes that Wiesenkiez will continue to be found in the markets that are being taken over: “We performed well there and regionality is important to customers.”
Tegut sales: This is how things continue for regional suppliers
Heiko Reinholz from the Fulda coffee roasting company of the same name also speaks of being “greatly affected”. For years, Tegut has been more than just a sales channel: “a partner who has actively promoted regional quality, sustainable products and responsible business practices”. The presence in the food retail sector is a central component for the small manufacturer, which makes it possible to make coffee accessible to a wide range of customers and at the same time to build long-term customer relationships.
The upcoming restructuring is a challenge, but also an opportunity to “further develop existing partnerships and open up new avenues in trade,” says Reinholz. He looks forward with confidence.
The situation is similar at the Robert Müller butcher shop in Flieden: “We are of course sorry that Tegut, a medium-sized company, is disappearing from the market,” says managing director Peter Schmitt. Tegut was “a good customer”; The aim is now to deliver the products to Edeka and Rewe. We are currently in discussions with both companies. Schmitt is optimistic: “We are confident that our good products will continue to be popular in stores.”
In other areas, however, the concerns are likely to be greater. Because products from farmers in the region are also sold in the Tegut branches, especially meat via the so-called LandPrimus quality program. This played an important role for participating companies, explains Stefan Schneider, chairman of the Fulda-Hünfeld district farmers' association. LandPrimus strengthened regional products and offered reliable marketing structures. And the farmers made targeted investments in order to meet the high requirements of the program. The current development is “unfortunate and associated with uncertainty,” says Schneider.
The companies would have to adapt their existing marketing structures and open up new sales markets, and that would require “a certain amount of organizational and economic adjustment,” said the association chairman. However, recently only relatively few companies have taken part in the LandPrimus program. Many had already been terminated before the planned sale became public. Schneider also assumes that farmers will find alternative marketing channels and new market partners: “In the long term, the companies should be able to continue to successfully place their products on the market.”
The end of “LandPrimus” only affects a few companies
One of the farmers affected is Hermann Bockmühl from Bronnzell, whose pork is marketed at Tegut. Migros had already scaled back the LandPrimus program at the end of last year – “probably because they were still trying to counteract the deficits at Tegut”. Bockmühl says they worked closely with Tegut for 20 to 25 years and met a high standard in accordance with the requirements. And now? “We are in the discovery phase and are seeing what can develop.” Edeka could possibly become a new partner in the future.
Hunfelt Braeu looks at the changes in a comparatively calm manner. Christian Kiel, one of the three managing directors, sees opportunities alongside regrets. “Of course it's a shame when branches close. We could have imagined even more, especially in Hünfeld,” he says. At the same time, the beer brewers hope that Edeka or Rewe will take over many locations. We already have experience with both, reports Kiel: Hünfeld products are already excellently placed in individual Rewe stores, such as in Eiterfeld.
The fact that Hunfelt Braeu is primarily represented in larger Tegut markets – such as the Hünfeld Haunecenter or the Fulda Kaiserwiesen – gives him additional confidence. “These branches are more likely to be taken over than closed.” The company is also broadly positioned. “We have a lot of catering customers, that takes up a lot,” says Kiel. But it is also clear: new discussions are pending with Edeka and Rewe. For him, an example from Petersberg shows that there are alternatives: After the Tegut tents were demolished, Hunfelt Braeu has now moved to nearby Rewe. “There are other supermarkets – and we are ready. Now let's see how everything develops.”
