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Reporting On...
NORDIC MARKETS
Centralized Sourcing,
Internationalization, and
Expansion as Keys to Success in
the Nordic Fruit Trade
THE MAjORITy OF THE BIG RETAIL
CHAINS IN THE NORDIC MARKET HAVE
BUNDLED AND TRANSFERRED PUR-
CHASING TO SUBSIDIARy COMPANIES.
FRANCHISEES MAINTAIN THE FREEDOM
TO PURCHASE THEIR FRESH PRODUCE
FROM OTHER SUPPLIERS, BUT SOURC-
ING FROM THE FRANCHISORS USES TO
BE THE MOST BENEFICIAL OPTION.
Operators at all levels of the
Nordic fruit trade are meeting
the stiff competition through
increased efficiency – centralizing
purchases, forming
international alliances and
expanding operations within
the Nordic/Baltic region.
As growth at home becomes
virtually impossible, mergers
and new forms of international
cooperation are the
only option to grow or at
least maintain one’s hold on
the market.
ICA Group, the Nordic region’s
leading retail chain
and 60%-owned by Royal
Ahold, sources the biggest
part of fruits and vegetables
(2009/10: about 70%)
through ICA Frukt & Grönt.
Purchases for pan-Nordic retail
group Coop Norden are
bundled in Coop Trading’s
activities; anyway, as more
than 60% of all Coop stores
are run by the different national
consumer associations
that own Coop Norden, there
are differences between countries
as to sourcing. For example,
in Sweden, where Coop
ranks second in the fruit and
vegetables retail business, in
2009, about 90 per cent of
fresh produce was supplied
by Everfresh, a Total Produce
Nordic associate. Another Total
Produce associate, Danish
Lembcke Group, is one of
Denmark’s leading importers.
In 2009, the two companies
bundled and transferred
their warehouse activities to
the Helsingborg (Sweden) –
based Nowaste Logistics A/S.
Dansk Supermarked Gruppen
has its own centralized
purchasing and importing facilities.
Supergros A/S, owned
by Dagrofa A/S, claims to
be the largest wholesaler in
the Danish grocery retail
market. It delivers everyday
commodities to several retail
chains (among them Dagrofa’s
‘Superbest’ and ‘Kiwi’)
and independent grocers.
Axfood, number three of the
Swedish fruit and vegetables
retail, sources around 85%
of the fresh produce through
Axfood Frukt & Grönt. ‘Netto
Sweden’, owned jointly by
Dansk Supermarked and ICA
Sweden, sources its fresh produce
via weekly offers from
major suppliers. The biggest
‘independent’ importer and
distributor of fruits and vegetables
on the Swedish market
is Saba Trading, since 2005
100% Dole-owned.
Lidl discount retail stores,
operating in all Nordic countries,
except for Norway, are
supplied with fruit and vegetables
via the chain’s distribution
centers in Germany.
German retailer Edeka (important
market share in Denmark)
sources its fresh produce
from Hamburg-based
Edeka Fruchtkontor.
F&H International 1 • November 2011
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