A shopper walks out of a Woolworths store in Sydney, Australia, May 12, 2016. Reuters/David Gray

Woolworths has expanded its private label by joining the European Marketing Distribution alliance. The new partnership would help the giant supermarket to achieve its goal in providing access to quality food and non-food products across Australia.

The giant supermarket's director, Steve Greentree, said that they were delighted to partner with EMD. He said that the collaboration would increase their access to great quality private label products, especially for those that were not available locally. He said that the company primarily aimed to source Australian products to provide customers more product choices. The agreement would allow Woolworths' suppliers to maximise investment and growth opportunities with European retailers.

The deal would help Woolworths find potential suppliers for its private label products through the help of EMD. The private label brands of the giant supermarket are Essentials, Woolworths, Gold and Macro. Baxter's Dog Food is also included in the list.

Woolies committed to selling its products to the Australian market despite the fact that it has been selling hundreds of products to China. The supermarket giant uses Tmall Global for more than a year, providing an increased sale to the company. Woolies sells products including Lucas' Papaw Ointment, baby formula, Weet-Bix, Australian almonds, UHT milk and diet powder. Tmall Global is operated by Alibaba.

EMD Managing Director Philippe Gruyters said that the procurement integration would bring considerable benefits for both the trading and the manufacturing sector. He said that they were committed to reinforcing the importance of EMD in Australia and New Zealand. He added that their commitment extended in setting a new standard in relation to the dynamic commercialisation of all products in the Fast Moving Consumer goods ranges.

According to EMD's statement, before Woolworths joined EMD, the European purchasing organisation has a combined revenue of €178 billion(AU$249 billion). The organisation was joined by several trade companies from different countries, including the United Kingdom and Germany. Wal-Mart subsidiary Asda and Globus joined the EMD Group along with the Kaufland Group's stores located in Czech Republic, Slovakia, Poland, Croatia, Romania and Bulgaria.

The European purchasing organisation is currently operating in 20 European countries. It now includes Australia and New Zealand in its list. EMD is the leading buying group representing about 400 trading companies and over 155,000 point of sales mainly in grocery retail. Its heaquarters is located in Pfaffikon, Switzerland, with Gruyters as the managing director. Gruyters primary duties are coordinating the renowned retail companies to common benefit and to pool the companies’ interests.