*4.8. Food Wholesale*

The trading company's products are sold through a variety of sales channels. The products are sold either via the company's own online store directly to the end consumers or via various retail companies. The most important retail customers are drugstores, organic food retailers, and food retailers. These stores purchase their products through food wholesalers, such as Company H. Company H mainly supplies stores close to the company's headquarters and defines itself by high sustainability standards. The company works with many small producers in the region but also large industrial companies. The interview was conducted with the purchasing manager [IP9] and the quality and sustainability manager [IP10].

As the basis of its business relationship, Company H relies on contracts that define, for example, delivery formalities. The purchasing manager describes how the business relationships are coordinated more formally, especially with large or international companies: "[ . . . ] the exchange exists on a formal level [ . . . ]" (IP9). Further, certificates and standards play an important role for Company H when managing transactions and selecting new partners. The EU organic logo is a basic requirement for any cooperation with Company H. In addition to the EU organic logo, other social and environmental sustainability certificates are requested of the suppliers. The wholesaler does not conduct audits at its suppliers, as sustainability standards are guaranteed by certifications and are verified by the certificate issuer.

In the cooperation with producers, Company H compensates for cultivation risks and crop failures: "[ . . . ] if there should be crop failures in the fruit and vegetable sector with our regional suppliers, [ . . . we] compensate for this by means of prices, which are then calculated differently [ . . . ]" (IP10). In cases of overproduction, Company H tries to sell additional quantities so that no economic damage occurs for the companies involved. In its cooperation with customers, the organic wholesaler strives to promote investments in sustainable technologies. For example, a joint investment was made in a new refrigeration system for an organic market by providing a one-time payment and a loan from Company H.

The organic wholesaler complements the formal arrangements with close and trusting partnerships, especially with regional suppliers and customers: "[this kind of] partnership cooperation is quite strong. So we have intensive contacts here, we have regular meetings [ . . . ]" (IP9). Site-visits and the trust gained from the close contacts replace audits: "You know the region here, so there's really no need for an in-depth audit [ . . . ]." (IP10).
