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Sustainability Report


5. A year of advances. Generating wealth and well-being
A driving force for economic and cultural development

We wish to be acknowledged as key performers in the environment in which we work and live, and we therefore work towards promoting the localities in which we are present, economically, socially and culturally.

We will keep on improving... endeavouring to assume the social and cultural realities of our environment, becoming a multicultural organisation that respects and encourages local differences while generating wealth and contributing to social well-being.

A driving force for growth

Collaborating with local economic development

Our work to bring about the economic and social development of the community is patent in our creation of direct employment. We provide jobs at our centres, together with indirect employment deriving from our relationship with our suppliers and subcontracted companies, whom we pay in accordance with the terms agreed on by contract. In 2004, 67.39% of our income was spent on acquiring products and services, amounting to 3,952 million euros.

Eroski does not only generate wealth for its owners. Our activity throughout the whole of Spain makes us a major promoter of economic activity, as a result of the employment we generate and the economic activity established around us.

The presence of our centres is a stimulus for the socio-economic development of the community of which we directly form part, through the multiplying effect of the emergence of sub-structures for providing our network of shops with complementary services. It is therefore our policy to give back to society 10% of the wealth it has helped us generate.

The 5,866 million euros of gross income obtained by the Eroski Group in the financial year 2004 was distributed as follows:

  • 67.39 % was used to pay the suppliers for the goods and services acquired for sale.
  • 7.84% was for the external goods and services consumed in order to carry out the activity.
  • 8.83% was allocated to the Administration for taxes, including 8.27% VAT.
  • 9.68% went to pay the wages of our team of people, and 3.22% for production equipment, more specifically for amortization.
  • The capital remuneration contributed by the shareholding members and the borrowed resources used represented 1.09%.
  • Allocation of Profit to the company accounted for 1.22% (percentage of net profit of interest and tax on gross sales), 10% of which was earmarked for charity.
Proximity and integration

Promoting local culture and tradition

We work towards becoming fully integrated in the places where we work, identifying with their culture and customs, and we have become a multicultural entity, helping to integrate the different communities where our work centres are located.

Our support of cultural promotion and integration includes the use of the different co-official regional languages at our points of sale, on all the computer supports, on the internet, in printed publications, on Eroski brand product labels and in advertising and promotional leaflets.

To encourage economic and cultural development we promote the ongoing sale of artisanal products. This began in 1997 when we opened our first Regional Shop in Cáceres, and 48 Eroski hypermarkets are now involved in the scheme. These spaces contain a fullscale reproduction of the decorative elements typical of each region and a total of 9,789 different local products are on offer.

We also promote regional production by conducting yearly campaigns in all our centres, where the typical products of a region's cuisine are promoted outside the geographical area in which they are usually consumed. These individual campaigns are presented on specially dedicated stands or in promotional spaces at the shops, and they include regional varieties with special emphasis on one type of product.

Regional campaign
Murcia: Goat's cheese
Extremadura: Soft cheese
Castilla-La Mancha: Castilla Designation of Origin wine
Andalucía: Virgin olive oil
Asturias: Cabrales cheese
Cantabria: Orujo cream liqueur
Galicia: Rías Bajas Designation of Origin wine
Aragón: Somontano Designation of Origin wine
Castilla y León: Cured meat
Cataluña: Virgin olive oil
La Rioja: Rioja Designation of Origin wine
Navarre: Patxaran liqueur
Basque Country: Txakoli wine with designation of origin

We also hold a yearly competition for regional products. These are judged by the laboratory and by a jury of consumers, and the supplier obtaining the highest marks is able to include their product in our general product range, meaning it will be sold in our entire network of shops, with the consequent boost in trade.

Each of our establishments helps define our function as economic promoters of the surrounding environment, and for the fifth consecutive year we have therefore maintained our commitment to collaborating with small artisanal producers.

In order to collaborate towards local and regional development, we enter into fixed agreements with primary sector suppliers (suppliers of meat, fruit and vegetables). This affects around a hundred producers, with whom we agree on a series of purchase specifications regarding prices, estimated production, product data sheet, quality control mechanisms, etc. We also provide them with technical and assistential help in optimising their results.

On a more general level, we also sign collaboration agreements for the promotion of regional products with administrations and institutions representing community interests. Some such agreements made in 2004 were as follows:

Ministry of Agriculture, Fisheries and Food: Agreement for the promotion of local SME-produced agro-food products, worker training programmes, setting of quality criteria and crisis action.

Fund for the Regulation and Organisation of the Fishery Products and Marine Fish Farming Market (FROM): Agreement with this Autonomous Body attached to the Ministry of Agriculture, Fisheries and Food, for refusal to sell immature fish.

Malaga Provincial Government: Agreement for the promotion of local products in the three hypermarkets in Malaga province, with more than 100 m2 in each establishment being given over to the display and sale of their products, plus 5 m2 for the direct promotion of Malaga Provincial Government.

Landaluz: A campaign for the promotion of Andalusian products, in conjunction with other companies belonging to the Agro-Food Quality Business Association (LANDALUZ).

Oviaragón: Aragón's main "ternasco" lamb production cooperative, with whom a collaboration agreement has been reached.

Corderex: Agreement with the specific Extremadura lamb designation Control Board, with whom we are collaborating as regards the control, promotion and defence of the quality and specific characteristics of lamb.

Galician beef producers: Collaboration agreement with the Control Board for the Protected Geographical Indication of GALICIAN BEEF, for promotion and production and marketing protection.

Ojiblanca and Cordoriva: An agreement made with 25,000 cooperative member and oil-producing families, with whom we have undertaken to market an amount of produce roughly equivalent to 15 % of their annual production.



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4. A different way of doing things 5. A year of advances. Generating wealth and well-being

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