Accessing the Nordic Markets

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

Content Market Overview Doing Business Market Place 2015

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 2013. Ageing population (1 out of 5 Swede s are above 65, increasing to 1 out of 4). High level of single occupancy households.

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 = 0.1342 Finland Geopolitical: Norway out of the EU but in the EEA. Sweden, Denmark and Finland in the EU. * pinned to the

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 2009-2013) Sweden and Denmark are the main Nordic market for Irish food and beverage. Beef remains the key product exported

Nordic Achievements

Retail Market

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

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)

Food Service

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** 2013/2018 +6.1% * Consumer food service, source: Euromonitor ** source: Euromonitor

INDIGENOUS FOOD MANUFACTURES

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

MAIN WHOLESALERS

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

MARKET TRENDS

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)

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: www.think.withgoogle.com)

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 - 2012 Volume Share (%) Value Share (%) Switzerland 52.8 45 Spain 50.8 40.6 UK 45.3 40.8 Portugal 43.5 33.3 Germany 41.9 32.4 Belgium 40.4 28.4 Austria 39.1 28.1 France 35.7 28.3 Hungary 31.2 23.1 Denmark 30.7 24.9 Slovakia 30.1 21.1 Poland 30 21.3 The Netherlands 29.3 27.3 Finland 29.1 23.1 Czech Republic 27.2 18.4 Source: Nielsen/PLMA Norway 27 21.9 Sweden 25.9 20.2 Greece 23.7 16.6 Turkey 20.8 14.1 Italy 20 16.9

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 2020. 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 Rema1000 18 MAX OK Kariniemi Meny 19 Apoteket Hjärtat Svane Stockmann Q 20 Skellefteå Kraft Volvo Atria Sparebank 1 Food Service Retail Manufacturing

Logistics Dublin to Gothenburg, Sweden 1 palette 3-5 palettes Full load Ambient temperature 190 160 2200 Chilled 225 190 3400 Frozen 225 190 3400 Dublin to Copenhagen or other city, Denmark 1 palette 3-5 palettes Full load Ambient temperature 190 160 2200 Chilled 190 165 2800 Frozen 190 165 2800 Dublin to Oslo, Norway 1 palette 3-5 palettes Full load Ambient temperature 275 200 2850 Chilled 350 275 3800 Frozen 350 275 3800 Dublin to Helsinki, Finland 1 palette 3-5 palettes Full load Ambient temperature 315 230 3400 Chilled 430 315 4700 Transport time from Ireland is approx. 3-4 days. Daily departures are available Transport to Finland is expensive Frozen 430 315 4700

DOING BUSINESS

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.

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.

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

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

You will be judged on Service Quality as much as Product Quality. We wish you a successful Market Place 2015. Bord Bia, Nicolas Ranninger Hovslagargatan 5, 11148 Stockholm, Sweden Tel: +46 8 54 50 40 58; Email: nicolas.ranninger@bordbia.ie