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Dennree: 5% sales plus in 2017 to 974 million euros
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The headquarter and warehouse of Germany´s biggest distributor Dennree in Töpen. Photo Dennree
The German Dennree group closed the financial year 2017 with sales of 974 million euros. As specifically forecast, the company was able to increase its sales by a further 5 percent compared with the previous year.
According to its own information, Dennree as a wholesaler supplies more than 1,400 partners in the specialist trade. However, the company is consistently working on expanding its own sales network through their own stores called denn’s Biomarkt. Following the opening of 32 denn's-branches, Dennree now operates more than 280 branches in Germany and Austria and employs a total of more than 5,500 people.
Franchise concept for private specialist retailers
Since November 2017, Dennree has also been working with a franchise concept and two new partners with the aim of countering the fierce competition in the industry as well as location requirements with flexible business models: denn's Grünkern in Ahrensburg and Biomarkt Fischer-Mühle, which acquired the denn’s Biomarkt in Backnang at the end of the year.
In addition, the group is also expanding its branch network by providing services for private specialist retailers and wholesale customers. Dennree participated in the opening of new stores, relocations, informing the specialist traders on the subject of business transfer and overtaking responsibility for the markets of some wholesale customers. In Dresden alone, the organic food market acquired two independent natural food markets last year. Due to the growing number of chain stores in the organic sector, but also due to the growing range of organic products offered by conventional retailers, it is increasingly difficult for private specialist retailers to achieve sufficiently high sales.
Investments in a growing distribution network
In 2017, Dennree has expanded its sales network, denn's Biomärkte, by 32 new branches. According to the company, it continues to invest in the modernisation of existing stores and the development of its product range. Thomas Greim, founder and owner of Dennree, explains: “We are very pleased that last year too, numerous products of our dennree brand were rated by consumer magazines as good or very good.” In addition to the further development of its own brand, the group relies on an offer that is not limited to regional goods. The aim is to enable customers to choose between regional and international products, for example in the fruit and vegetables sector.
Strengthening organic farming
In 2015, Thomas Greim took over Hofgut Eichigt in the Vogtland, Saxony. The farm estate cultivates its approx. 4,000 hectares of arable land and grassland according to organic farming guidelines and has been a certified member of the Bioland Association since 2017. An important step for the company was the relocation of the cattle, including around 1,500 dairy cattle, to the newly built stables. Following the philosophy of the farm, the calves have not been dehorned since August 2017. Furthermore, the calves are to be raised by ammunition cows in the future.
Organic agriculture is also the focus of the Zukunftstiftung BioMarkt (Engl.: Future Foundation OrganicMarket), a joint initiative of private specialist retailers and the Dennree group. The foundation supports forward-looking projects and initiatives in the fields of agriculture, education and research. In 2017, the initiative's annual donation of 55,000 euros was donated to the Seed Fund of the Zukunftsstiftung Landwirtschaft (Future Foundation Agriculture). Further funds were given to other selected institutions.