In the face of intensifying competition, leading supermarket companies are striving to differentiate themselves in a crowded market. Some are prioritising local and regional products, recognising that these contracts hold substantial growth potential for small and medium-sized enterprises (SMEs) if strategically grouped together. Here is an explanation and analysis from the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions.
In France, supermarket chains are prioritising the promotion and display of regional products with the aim of attracting and retaining consumers. This approach is evident in the dedicated shelf space allocated to regional products; a strategy adopted by various chains. A notable example is the Carrefour supermarket in Évreux, which in 2023 created a 40 m2 space dedicated to products from Normandy, showcasing over 150 different references. The same year, Intermarché Pleurtuit (Ille-et-Vilaine) developed a 200 m2 corner exclusively for local products.
The price factor
In the aftermath of the covid health crisis, French consumers have shown an increased awareness of the sourcing of products. According to an Appinio study conducted for Le Collectif en Vérité, 86% of French people consider the origin of products to be important, particularly in terms of supporting local producers, guaranteeing quality and responding to ethical and environmental concerns. Nevertheless, price remains the number one criterion when making a purchasing decision. In this context, regional brands in supermarkets have a modest market share of 2.7% of supermarket food products, although there are significant variations. Brittany is the leader in purchasing local produce, with regional products accounting for 7.3% of the supermarket market in Finistère, 6.4% in Côtes-d’Armor and 6.1% in Morbihan.
Setbacks
Local SMEs are increasingly collaborating to enhance their negotiating position with major retailers, though not all initiatives meet with success. In 2006, the Occitanie region established the Sud de France brand to promote the region’s food, wine and craft products in France and internationally. The brand encompasses a catalogue of 15,000 products, with a significant proportion dedicated to the region’s wines. The Sud de France initiative unites over 2,000 companies, with the objective of providing a unified platform to enhance their visibility and market share. However, since the beginning of 2025, the region’s winegrowers have been prohibited from using the ‘Sud de France’ trademark on their wine labels, by decision of the Ministry of Agriculture. The reason for this is that ‘the Sud de France label does not correspond to an administrative area, a group of localities or a wine-growing sub-region. Mention of the brand may create ambiguity about the content of the specifications or the geographical limits of an appellation’, the Ministry explained in detail.
An exception for Brittany
In this David versus Goliath scenario, one market player stands out: the Produit en Bretagne cooperative, which has 500 members and more than 4,000 product references. This cooperative is helping to raise the profile of SMEs in opposition to the major agri-food brands, and this initiative, which is not supported by any local authority, has enabled many SMEs to emerge. A notable success story is that of the Les 4 saisons jam brand, which is now being stocked in numerous Coopérative U supermarkets.
Our experts at your service
By joining forces within a regional cooperative, businesses can effectively boost sales and strengthen their presence in mass distribution. AURIS Finance’s sector-specialised experts are available to support growth and optimisation strategies.
