Belgium-based produce supplier Greenyard and leading German retailer REWE Group have said they will expand their relationship.

It will become a "long-term, vertically integrated and transparent partnership" in produce, facilitated by a dedicated operating unit, according to Greeenyard.

Greenyard says this is the next step towards its strategy of implementing tailor-made partnership models.

This partnership will optimize and share resources in the supply chain of various product categories, it adds. 

Added value services, such as ripening of fresh produce, will be provided by Greenyard. The agreement emphasizes the importance of the fruit and vegetables category for REWE Group and shortens the supply chain, it says.

Both partners are convinced that this cooperation optimally positions them for the fruit and vegetable retail market of the future.

“REWE Group and Greenyard can look back on a long and successful relationship," Managing Director Ultra Fresh (fruit and vegetables) of REWE Group, Eugenio Guidoccio says.

"With today's letter of intent, we are defining another common milestone in our fruit and vegetables business."

Meanwhile, co-CEO of Greenyard, Hein Deprez, says: “This letter of intent marks the start of the implementation in one of our largest markets of the partnership model, which has already been successfully deployed in the Netherlands, Belgium and the UK.