The Nordics Market Overview November 13th, Nicolas

Accessing the Nordic Markets
Presented by Nicolas Ranninger
Growing the success of Irish food & horticulture
AIDAN COTTER
CHIEF
EXECUTIVE
Growing
the success
BORD BIA
28 JANUARY
2009
of Irish
food & horticulture
13/11/14
Content
Market Overview
Doing Business
Market Place 2015
Growing the success of Irish food & horticulture
Market Overview
2013 GDP: €1.3 trillion. (12th largest economy in the
world)
Population: 25 million.
Economic resilience.
Food spend represents 11 to 14%
depending on country.
6th 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.
Growing the success of Irish food & horticulture
Market Overview: Similarities with Differences
Cultural and language similarities: Norway,
Sweden, Denmark.
Interlinked business: ICA, COOP, Scan, Arla,
Lantmännen.
High social welfare system associated with high
taxes.
but
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 €
Growing the success of Irish food & horticulture
Market Overview: Irish Exports
Irish Exports to the Nordics, 2013
(est)
Irish Exports to the Nordics, 2013
(est)
Poultry
1%
FI
4%
DK
39%
NO
4%
Seafood
6%
Sheep Meat
9%
Pig Meat
12%
Dairy
6%
Beverages
12%
SE
53%
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
Growing the success of Irish food & horticulture
Nordic Achievements
Growing the success of Irish food & horticulture
Retail Market
Growing the success of Irish food & horticulture
MAJOR RETAIL BUYING GROUPS
Grocery Market Share 2013
Bergendahls
4%
0%
Lidl Netto
4% Marknad
2%
Reitangruppen
2%
Sweden (1)
Rema 1000
Danmark
7%
Dagrofa
15%
ICA
48%
Coop
Sverige
19%
Coop
Danmark
38%
Dansk
Supermarked
34%
Axfood
21%
Grocery retail market*: € 30.9 bn
Source: Euromonitor
Grocery retail market*:€18.6 bn
Norway (1)
Suomen
Lähikauppa
7%
0%
0%
Reitangruppen
22%
Denmark
Aldi Lidl
3% 3%
ICA
12%
Norgesgruppen
43%
Finland (1)
Lidl
6%
S-group
50%
Kesko
37%
Coop Norge
23%
Grocery retail market: € 23.3 bn
Source: Euromonitor
Source: Euromonitor
Grocery retail market*: € 17.2 bn
(1) Alcohol retail monopoly sales aren’t included in the pie chart
Growing the success of Irish food & horticulture
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)
Growing the success of Irish food & horticulture
Food Service
Growing the success of Irish food & horticulture
Total foodservice market estimated at €23.6 bn (excluding social catering)
Sweden
Denmark
Value*: €3.8 bn
Value*: €10.8 bn
Key players: Mc Donald,’s 7 -Eleven,
Jensens Bøfhus
Key players: Mc Donald’s, Max burgers
Trend: Fast food channels dominate sales
Trend: Health and coffee
Forecast ** 2013/2018: +8.5%
Norway
Forecast** 2013/2018: +5.8%
Finland
Value*: €4.1 bn
Value*: €4.9bn
Key players: Umoe Catering (Pepps pizza,,
Cafe Opus), Mc Donald’s, Norgesgruppen.
Key players: Burger In Oy, McDonalds, S
group
Trend: Fast food
Trend: health and exotic, fast food.
Forecast** 2012/2017: +10.6%
Forecast** 2013/2018 +6.1%
* Consumer food service, source: Euromonitor ** source: Euromonitor
Growing the success of Irish food & horticulture
INDIGENOUS FOOD
MANUFACTURES
Growing the success of Irish food & horticulture
Company
Activity/Sector
HQ
T/O
Employees
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
Growing the success of Irish food & horticulture
Brands
MAIN WHOLESALERS
Growing the success of Irish food & horticulture
Company
Country
Cash & Carry
T/O
€
MartinServera
Owned by Axfood
Sweden
y
€ 1.3 bn
Menigo
Owned by Brake
Sweden
€ 550 m
Svensk Cater
Owned by Eurogroup
Sweden
€290 m
Snabbgross
Owned by Axfood
Sweden
y
€ 250 m
Dansk Catering
Owned by Eurogroup
Denmark
y
> 40 % Market Share
Dagrofa
Owned by NorgesGruppen & A/S KFI
Holding
Denmark
> 12.5 % Market
share
Horkam
Owned by German company Citti
Denmark
8.5 % market share
Kespro
Owned by K group
Finland
€ 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
Growing the success of Irish food & horticulture
€ 400 m
MARKET TRENDS
Growing the success of Irish food & horticulture
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)
Growing the success of Irish food & horticulture
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 5th , Sweden 7th and Denmark 10th (source:
www.think.withgoogle.com)
Growing the success of Irish food & horticulture
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
Norway
27
21.9
Sweden
25.9
20.2
Greece
23.7
16.6
Turkey
20.8
14.1
Italy
20
16.9
Source: Nielsen/PLMA
Growing the success of Irish food & horticulture
Sustainability
SUSTAINABLE BRAND INSIGHT
RANK
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.
SE
DK
FI
NO
1
Lantmännen
SuperBrugsen
Valio
Stormberg
2
Saltå Kvarm
IKEA
Oululainen
Tine
3
Coop
Sygeforsikringen
Danmark
Fazer
Nordic Choice
Hotels
4
IKEA
Irma
Prisma
Kiwi
5
ICA
Arla
Vaasan
IKEA
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
Growing the success of Irish food & horticulture
Retail
Manufacturing
Logistics
Dublin to Gothenburg,
Sweden
Ambient temperature
1 palette
3-5 palettes
Full load
€ 190
€ 160
€ 2200
Chilled
€ 225
€ 190
€ 3400
Frozen
€ 225
€ 190
€ 3400
Dublin to Copenhagen or
other city, Denmark
Ambient temperature
1 palette
3-5 palettes
Full load
€ 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
Frozen
€ 430
€ 315
€ 4700
Growing the success of Irish food & horticulture
Transport time from
Ireland is approx. 34 days.
Daily departures
are available
Transport to Finland
is expensive
DOING BUSINESS
Growing the success of Irish food & horticulture
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.
Growing the success of Irish food & horticulture
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.
Growing the success of Irish food & horticulture
Why work with the Nordics markets
English Widely Spoken
Currency
Healthy Economy
Healthy State Budget
Business Loyalty
Growing the success of Irish food & horticulture
Market Place 2015
Nordic MP2015 Buyers
• Alcohol: 1
• Dairy Ingredients: 2
• Seafood :2
• Frozen : 2
• Confectionary : 1
• Grocery : 2
• Bakery : 3
Growing the success of Irish food & horticulture
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
Growing the success of Irish food & horticulture