Accessing the Nordic Markets

Transcription

1 Accessing the Nordic Markets Presented by Nicolas Ranninger 13/11/14 AIDAN COTTER Growing the success of Irish 28 JANUARY food & horticulture 2009 CHIEF EXECUTIVE BORD BIA

2 Content Market Overview Doing Business Market Place 2015

3 Market Overview 2013 GDP: 1.3 trillion. (12 th largest economy in the world) Population: 25 million. Economic resilience. Food spend represents 11 to 14% depending on country. 6 th largest export market for Irish food and drinks: 275m in Ageing population (1 out of 5 Swede s are above 65, increasing to 1 out of 4). High level of single occupancy households.

4 Market Overview: Similarities with Differences but Cultural and language similarities: Norway, Sweden, Denmark. Interlinked business: ICA, COOP, Scan, Arla, Lantmännen. High social welfare system associated with high taxes. Different currencies: Norway: NOK 8.2 = 1 / NOK 1 = 0.12 Sweden: SEK 9.13 = 1 / SEK = 0.10 Denmark* : DKK 7.45 = 1 / DKK 1 = Finland Geopolitical: Norway out of the EU but in the EEA. Sweden, Denmark and Finland in the EU. * pinned to the

5 Market Overview: Irish Exports Irish Exports to the Nordics, 2013 (est) FI 4% NO 4% Seafood 6% Irish Exports to the Nordics, 2013 (est) Poultry 1% Pig Meat 12% Sheep Meat 9% Dairy 6% DK 39% SE 53% Beverages 12% Beef 48% Prepared Foods 6% Total : 275 million Source: CSO Total : 275 million Source: CSO Irish exports to the Nordics have been outperforming the general Irish export average. (+52 % between ) Sweden and Denmark are the main Nordic market for Irish food and beverage. Beef remains the key product exported

6 Nordic Achievements

7 Retail Market

8 Coop Sverige 19% Bergendahls 4% 0% Lidl Netto 4% Marknad 2% Axfood 21% MAJOR RETAIL BUYING GROUPS Grocery Market Share 2013 Reitangruppen 2% ICA 48% Sweden (1) Rema 1000 Danmark 7% Dagrofa 15% Aldi 3% Lidl 3% Dansk Supermarked 34% Coop Danmark 38% Denmark Grocery retail market*: 30.9 bn Source: Euromonitor Grocery retail market*: 18.6 bn Source: Euromonitor Reitangruppen 22% 0% ICA 12% Coop Norge 23% Norgesgruppen 43% Norway (1) Suomen Lähikauppa 7% 0% Kesko 37% Lidl 6% S-group 50% Finland (1) Grocery retail market: 23.3 bn Source: Euromonitor (1) Alcohol retail monopoly sales aren t included in the pie chart Grocery retail market*: 17.2 bn Source: Euromonitor

9 PL purchasing groups in the Nordics AMS Nordic Members : Dansk Supermarked Gruppen (DK, SE,), ICA (NO, SE), Kesko (FI) Coop Trading Nordic Members : COOP (DK, NO,SE) S group (FI) United Nordic Nordic Members : Norges Gruppen (NO)Dagrofa (DK), Axfood (SE) Tuko Logistics, Suomen Lähikauppa (FI)

10 Food Service

11 Total foodservice market estimated at 23.6 bn (excluding social catering) Sweden Value*: 10.8 bn Key players: Mc Donald s, Max burgers Trend: Fast food channels dominate sales Forecast ** 2013/2018: +8.5% Denmark Value*: 3.8 bn Key players: Mc Donald, s 7 -Eleven, Jensens Bøfhus Trend: Health and coffee Forecast** 2013/2018: +5.8% Norway Value*: 4.1 bn Key players: Umoe Catering (Pepps pizza,, Cafe Opus), Mc Donald s, Norgesgruppen. Trend: Fast food Forecast** 2012/2017: +10.6% Finland Value*: 4.9bn Key players: Burger In Oy, McDonalds, S group Trend: health and exotic, fast food. Forecast** 2013/ % * Consumer food service, source: Euromonitor ** source: Euromonitor

12 INDIGENOUS FOOD MANUFACTURES

13 Company Activity/Sector HQ T/O Employees Brands Dairy Viby, Denmark 9.8bn 5,475 Meat Randers, Denmark 7.8 bn 22,500 Beverages Copenhagen, Denmark 4.3 bn 40,000 Dairy Helsinki, Finland 2bn 4,600 Meat Turku, Finland 2bn 7,700 Seafood Bergen, Norway 1.7bn 6,000 Seafood Bergen, Norway 1.2bn 1,900 Bakery Copenhagen, Denmark 804mn 3,700 Consumer Foods Eslöv, Sweden 528mn 1,500 Meat Källby, Sweden 240 mn N/A Frozen Food Bjuv, Sweden 80 mn 6,000

14 MAIN WHOLESALERS

15 Company Country Cash & Carry T/O MartinServera Owned by Axfood Sweden y 1.3 bn Menigo Owned by Brake Svensk Cater Owned by Eurogroup Sweden Sweden 550 m 290 m Snabbgross Owned by Axfood Dansk Catering Owned by Eurogroup Sweden y 250 m Denmark y > 40 % Market Share Dagrofa Owned by NorgesGruppen & A/S KFI Holding Horkam Owned by German company Citti Kespro Owned by K group Denmark Denmark Finland > 12.5 % Market share 8.5 % market share 670 m Meira Nova Owned by S group Finland 315 m Metro Owned by Wihuri Finland y 1.5 bn ASKO NorgesGruppen Norway y 5.6 bn Service Grossistene Norway 400 m

16 MARKET TRENDS

17 Market trends Nordic: High food prices NO +186%, DK +143 %, SE +124%, FI +119% above EU average prices. Norway: Highest frozen pizza consumption (5 kg per capita per year) in the world. (Source: Euromonitor) Finland: Highest Ice Cream consumption (13 litters per capita) consumer (Source: Euromonitor). Highest coffee consumption in the world 11.9 kg per capita. (Source: International coffee organisation). Denmark: second highest western European sugar/confectionary purchases 69/capita. (Source: Euromonitor)

18 Market trends Finland: Second world highest multivitamin sales per person in the world. (Source: Euromonitor) Denmark: World's highest organic share at retail, 7.6 % valued at 778 million.(source: OrganicDataNetwork survey 2013) Sweden: Highest retail Tex Mex shelf space allocation in Europe. (source: ICA trade contact) Nordic: Pulled meat is trendy, ex: pulled pork, beef, chicken and turkey. Nordic: Top 10 countries in the world for smart phone usage. Norway 5 th, Sweden 7 th and Denmark 10th (source:

19 Market trends Low level of PL despite high retail concentration. PL share is growing rapidly as it is a key priority for the retail multiples. General segmentation: Price fighter, Standard, Premium, Premium plus, Private Label Market Share by Country Volume Share (%) Value Share (%) Switzerland Spain UK Portugal Germany Belgium Austria France Hungary Denmark Slovakia Poland The Netherlands Finland Czech Republic Source: Nielsen/PLMA Norway Sweden Greece Turkey Italy

20 Sustainability SUSTAINABLE BRAND INSIGHT RANK SE DK FI NO 1 Lantmännen SuperBrugsen Valio Stormberg 2 Saltå Kvarm IKEA Oululainen Tine Nordic food companies rank highly in the Sustainable brand index. Sweden has the highest percentage of renewable energy in the EU (over 47%). Denmark has 28% wind power in their electricity system. Denmark has a target of reaching 30% renewable energy by June 2010, The climate certificate label was developed, for which over 50 Swedish companies have registered. 3 Coop Sygeforsikringen Danmark Fazer 4 IKEA Irma Prisma Kiwi 5 ICA Arla Vaasan IKEA Nordic Choice Hotels 6 Arla Dagli Brugsen S-market Vinmonopolet 7 GodEl Carlsberg K-kauppa Quality Hotels 8 Volvo Rema1000 Sokos Hotels Clarion Hotels 9 The Body Shop Tryg Paulig Coop 10 Apoteket Jysk Saarioinen Clarion Hotels 11 Systembolaget Tuborg K-Citymarket Rica Hotels 12 Naturkompaniet H&M Ingman Comfort Hotels 13 Bilprovningen Volkswagen Snellman Toyota 14 Skånemejerier Føtex Pirkka Gilde 15 SJ Fakta Arla Gjensidige 16 Norrmejerier Bilka Sokos Thon Hotels 17 Wasabröd Netto S-Pankki Rema MAX OK Kariniemi Meny 19 Apoteket Hjärtat Svane Stockmann Q 20 Skellefteå Kraft Volvo Atria Sparebank 1 Food Service Retail Manufacturing

21 Logistics Dublin to Gothenburg, Sweden 1 palette 3-5 palettes Full load Ambient temperature Chilled Frozen Dublin to Copenhagen or other city, Denmark 1 palette 3-5 palettes Full load Ambient temperature Chilled Frozen Dublin to Oslo, Norway 1 palette 3-5 palettes Full load Ambient temperature Chilled Frozen Dublin to Helsinki, Finland 1 palette 3-5 palettes Full load Ambient temperature Chilled Transport time from Ireland is approx. 3-4 days. Daily departures are available Transport to Finland is expensive Frozen

22 DOING BUSINESS

23 Critical Success Factors Market choice: The Nordic frozen food market is one that has the closest similarity with Ireland (flavour profile, eating habits and product offering) and therefore requires the least product modifications. Liam Hyland, Export Manager Green Isle Foods. Entry strategy: Identify the right distributer, who s committed, believes in your product, will represent you daily, has attention to detail and is fully backed by you, the supplier Denis Kelly, Commercial Manager Rib world. Nordic Consumers : Nordic consumers and in particular Swedes are extremely knowledgeable about food and pay particular attention to food ingredients. 10% of all cookbooks published around the world, are produced in Sweden! - Gareth Gallagher, MD Atlanfish.

24 Critical Success Factors Business Culture : I have found selling into Swedish retail to be very straightforward and less demanding than supplying to UK retail. The process is open and transparent. 4 things to note are: The lead in time can be quite long i.e. 9 to 12 months from agreement to listing. Open book costing is common. Clarity of communication is very important. When something is agreed, it's agreed. Punctuality is important. Jason Coyle, Director Mr Crumb.

25 Why work with the Nordics markets English Widely Spoken Currency Healthy Economy Healthy State Budget Business Loyalty

26 Market Place 2015 Nordic MP2015 Buyers Alcohol: 1 Dairy Ingredients: 2 Seafood :2 Frozen : 2 Confectionary : 1 Grocery : 2 Bakery : 3 Information available CFD guide/directory for all 4 Nordics countries Meat guide/directory DK & SE Logistic reports PL guide directory Nordics Organic guide/directory DK Fortnightly Nordic Agribusiness Review

27 You will be judged on Service Quality as much as Product Quality. We wish you a successful Market Place Bord Bia, Nicolas Ranninger Hovslagargatan 5, Stockholm, Sweden Tel: ; nicolas.ranninger@bordbia.ie