Magazin: Tesco keeps looking for the ‘little stars’ of regions

Tesco organised their fourth forum for suppliers in Visegrád on 2 June, this time for farmers and SMEs from Fejér, Komárom-Esztergom and Pest counties. Béla Józsa is one of the potential suppliers who showed up. He has been manufacturing pasta for nearly 25 years, Józsa Kft. is seated in Gödöllő and their annual net sales amount to HUF 100-200 million. Józsa Kft. recently purchased new machinery and currently uses 30 percent of their production capacity. The owner feels they have a chance to appear with their products in Tesco stores, he is especially optimistic about their unique soup accompaniments. David B. Wood, Tesco Hungary’s commercial director told Trade magazin that after the first three forums nearly 60 suppliers appeared with about 250 products in Tesco stores. 61 suppliers registered for the fourth forum and we were informed that about every third negotiation results in a contract. Contracts may be signed for one or many stores, depending on the suppliers’ production capacity. On an annual level regional products (mostly wine, bakery and meat products, pickled vegetables) generate a HUF 3-billion turnover for Tesco, which they would like to increase to HUF 30 billion. Alpok-Aqua Kft.’s mineral waters and Dereszla Kft.’s Dorombor wines are just two of the success stories. An important factor in suppliers’ success is that after the cooperation started Tesco helps contractors with counselling, ranging from technology to business policy, because this is their mutual interest – emphasised David B. Wood