Market Brief Focus on the Swedish Market Food Products May 2011 Facts about Sweden Area: 449,964 sq.km Population: 9.4 million Capital: Stockholm. Stockholm city: 847.100 inh. Greater Stockholm: 2 mil. inh. Business language: Swedish, English Religion: Lutheran Largest cities: Stockholm city 847.100 inh. Gothenburg 513.800 inh. Malmö 298.900 inh. Uppsala 197.800 inh. Linköping 146.400 inh. Västerås 137.200 inh. Örebro 135.500 inh. Norrköping 130.100 inh. Helsingborg 129.200 inh. Jönköping 127.400 inh. Form of government: Constitutional monarchy, parliamentary democracy Some distances: Stockholm-Malmö 640 km Stockholm-Gothenburg 490 km Stockholm-Sundsvall 400 km Stockholm-Kiruna 1310 km Currency: 1 krona (SEK) = 100 öre The European Union • Austria • Belgium • Bulgaria • Cyprus • Czech Rep. • Denmark • Estonia • Finland • France • Germany • Great Britain • Greece • Hungary • Ireland • Italy • Latvia • Lithuania • Luxemburg • Malta • Netherlands • Poland • Portugal • Romania • Slovak Rep. • Slovenia • Spain • Sweden The EES/EEA area EU-countries, Iceland, Liechtenstein and Norway EFTA Iceland, Liechtenstein, Norway and Switzerland Market Brief – Food Products List of Contents Page 1 Introduction 3 2 2.1 2.2 2.3 The Swedish Food Market Market Size Market Characteristics Market Segments 2.3.1 Retail Sector 2.3.2 Foodservice Sector 2.3.3 Food Processing Industry 4 4 5 6 6 7 8 3 3.1 3.2 Imports and Exports Imports Domestic Production and Exports 9 9 10 4 4.1 4.2 4.3 4.4 4.5 4.6 Channels of Distribution Retail Groups 4.1.1 ICA Group 4.1.2 Coop Group 4.1.3 Axfood 4.1.4 Bergendahls Food Wholesalers for the Convenience Store Sector Wholesalers for the Foodservice Sector Importers of Fresh fruit and vegetables Importers of Alcoholic Beverages Importers of Raw Materials and Food Ingredients 12 13 14 15 15 16 17 17 18 19 19 5 Market Access 21 6 Market Prospects 21 Appendix 1 – Imports and Exports of Food, by Value 2008-2010 23 Appendix 2 – Import of Certain Prepared and Processed Food 24 Products, by Value 2008-2010 Appendix 3 – Retail Sales of Food, by Value 2007-2009 25 Appendix 4 – Direct Consumption of Food, by Quantity 2006-2009 26 Appendix 5 – Facts about Retail Groups 27 Appendix 6 – Useful Internet Links 28 Appendix 7 – Currency Conversion 28 1 Market Brief – Food Products Disclaimer: The information provided in this guide is believed to be accurate at the time of publishing. It is, however, passes on to the reader without any responsibility on the part of the authors and it does not release the reader from the obligation to comply with all applicable legislation. The authors or publishers make no warranty, expresses or implied, concerning the accuracy of the information presented, and will not be liable for injury claims pertaining to the use of this publication or the information contained therein. No obligation is assumed for updating or amending this publication for any reasons, be it new or contrary information or changes in legislation, regulations or jurisdiction. Copyright: Sida Author: Fox Research AB, Stockholm Published by: The Swedish Chambers of Commerce, May 2011 This document has been financed by the Swedish International Development Cooperation Agency, Sida. Sida does not necessarily share the views expressed in this material. Responsibility for its contents rests entirely with the author. 2 Market Brief – Food Products 1 Introduction Sweden has a population of approx. 9.5 million people. Since year 2000, the population has grown with 0.7 million people (+8%), of which a substantial part through immigration. Sweden is from 1995 a full member of the European Union (EU), which has 27 member countries. The EU has abolished all trade barriers between the member countries and can therefore be described as a single, unified market. Another four countries cooperate with the EU in the European Economic Area (EEA) and therefore participate in the European single market without having joined the EU. The population of the 31 EEA-countries is around 520 million people. Sweden's share of the total population is close to 2%, which means that it is one of the midsized national markets. However, the five Nordic countries (also known as Scandinavia) - Denmark, Norway, Sweden, Finland and Iceland - with about 25 million inhabitants, are more and more regarded as the “home market” for companies within the Swedish food trade and industry. Sweden has experienced a rapid growth during the last 50 years and is among the wealthiest nations in the world. Also in comparison with other European countries, the Swedish GDP per capita normally is about 20-25% higher than the EU average. Sweden and the European Market Area Pop. million Sweden Scandinavia* European Union (EU/EEA) 9.5 25.3 520.0 Share % 1.8 4.9 100.0 * Also called the Nordic Countries (Sweden, Denmark, Norway, Iceland, Finland) Source: Eurostat, Statistics Sweden GDP per capita comparison 2000-2010 Swedish volume index of Gross Domestic Product (GDP) per capita in Purchasing Power Standards (PPS) expressed in relation to the EU average, set to equal 100. European Union Sweden 2000 2008 2009 2010* 100 127 100 123 100 119 100 125 * Estimate Source: Eurostat The euro (€), the second most traded currency in the world, is the official currency of the European Union, and is currently in use in 17 of the 27 Member States. However, Sweden has for the moment decided not to participate in the Euro monetary system, and therefore still uses its national currency, the Swedish krona (code SEK), in English normally referred to as the “Swedish crown” (since krona means crown in English). For currency conversion between the Swedish krona, the euro and the US dollar, please refer to Appendix 7. 3 Market Brief – Food Products 2 The Swedish Food Market 2.1 Market Size Swedish consumers spent about 20% of their household budget on food and beverages in 2009, the same as the EU average. Other important areas of the private consumption were consumer articles (20%), housing (27%), and transports (13%,) as well as services, leisure activities and health care (21%). During 2009, consumer’s expenditure of food and beverages increased about 6% to SEK 326 billion (€31 billion). Of the total, the retail trade accounted for about 67% and the food service sector for 33%. Food Market 2009 Sector Number of outlets Sales SEK million M-share % Retail trade Foodservice • Total 6 100* 31 000 37 100 217 000 109 000 326 000 67 33 100 * Excluding small convenience outlets and specialised food stores Sources: Statistics Sweden, Delfi, Fox Research Retail sales of food and beverages amounted to SEK 217 billion (€20.5 billion) in 2009, which was 5.5% higher than the year before. The rise was due to increased volumes (2.6%) as well as increased prices (2.9%). The main product groups were dairy products and fats (16%), meat products (15%), fruit and vegetable products (15%), and bread and cereal products (12.5%). Due to high taxation, also consumption of alcoholic beverages (beer, wine, spirits) is notable when measured by value (15%). Even though retail sales of beverages, coffee, dairy products, bread, meat, and fish have increased considerably in recent years, the development of the per capita consumption is less distinct. In fact, only two product groups – bread and cereals, and “other foods” (including convenience foods, sauces and confectionery) – can show a positive progress, while some product groups have experienced a negative trend, as can be seen in the tables below and the next page. Retail Sales of Food and Beverages, By Value 2009 Product Dairy products, fats and eggs Meat products Fruit and vegetables Bread and cereal products Fish and seafood Coffee, tea and cocoa Other food products Juice, mineral water, soft drinks Beer, wine and spirits • Total Source: Statistics Sweden 4 Value SEK million 2008 2009 33 238 31 035 31 606 26 203 9 931 5 053 27 620 11 524 29 750 205 960 35 140 32 638 32 170 27 384 10 456 5 544 28 574 12 959 32 389 217 253 % Share % + 5.7 + 5.2 + 1.8 + 4.5 + 5.3 + 9.7 + 3.5 + 12.5 + 8.9 + 5.5 16.2 15.0 14.8 12.6 4.8 2.6 13.0 6.0 14.9 100.0 ± Market Brief – Food Products Per Capita Consumption 2006-2009 Product Group Fruit and vegetable products Dairy products, fats and eggs Meat products Bread and cereal products Fish and seafood* Coffee, tea and cocoa Other food products Beverages Per capita consumption in kg/litres 2006 2007 2008 2009 239 183 84 106 25 11 50 179 240 180 84 103 26 11 53 177 238 179 83 110 25 11 53 172 231 178 82 110 25 11 54 177 ± 06-09 ± % + + 3 3 2 6 0 0 8 1 ± ± + - 8 5 2 4 0 0 4 2 ± ± + - * Based partly on trade estimations. No official figures available since 1999. Source: Swedish Board of Agriculture 2.2 Market Characteristics Swedish food consumption consists of 90% processed foods. This is internationally a very high figure. The remaining 10% is composed of non-processed products, such as fresh fruit and vegetables, fresh fish, fresh meat and eggs. Sweden counts as a mature market for groceries, which normally means that there should be a relatively slow market growth. However, during the last couple of years, the market value for foodstuffs and beverages has increased about 5 to 6 percent per year, of which price increases account for about half and real increase in volumes for the remainder. But the positive trend has been slowed down since 2009, however, and the food trade therefore estimate that food sales will show a more modest development in the coming 2 to 3 years. The food market has for a number of years been influenced by consumer awareness of health, environmental, and social issues. A major development is the introduction of certified organic (also called ecological or biodynamic) foods, as well as Fair Trade labelled products, especially within ”natural” product groups such as fresh fruit and vegetables, cereals and coffee. During 2009, about 4.0% of all foods and beverages sold within the retail trade were certified organic, when measured by value. The increase was 16%, thus substantially higher than for the overall food market, which was 5.5%. At the same time increased interest in healthy foodstuffs has expanded sales of products that are regarded as nutritious, e.g. nuts, cereal grains, and health bars. There is also a high interest for food products from other countries, especially for so called ethnic foods, such as Italian, Chinese, Indian, and Mexican style products. This has led to significant sale increases especially of ethnic products such as oils and vinegar, condiments, spicy sauces and dressings. Taking into account the relatively large number of non-European immigrants (about 5% of the total population) also foodstuffs from countries in the Middle East, Africa and South America have increased in demand. In fact, all major retail groups have during the last couple of years introduced an "ethnic" assortment consisting of several hundred different products in their supermarkets, which has been met with a relatively big success. 5 Market Brief – Food Products Several of the these trends can be seen in the following list, showing food items with the largest sales increases within the supermarket trade during the last couple of years: Exotic foods with well-defined flavours (pomegranates, goji berries, coconut beverages, coconut milk) Organic foods (especially organic chocolate and ready-to-eat dishes) Gluten-free food (popular with many consumers with allergies) Sports and energy beverages and health bars Sliced ready-to-eat dishes and items (such as pizza slices and sliced fruit) Spicy snacks (containing e.g. chilli, garlic, ginger, onion) Hot sauces and spicy condiments On the other hand, there are also several product groups that for a number of years have shown a more modest and even a negative sales development, for example foods with a high content of salt, fats (such as margarine), sugar, and spirits. 2.3 Market Segments For food exporters, the Swedish market can be divided into two main market segments: the retail and food service sectors, and the food processing industry. 2.3.1 Retail Sector The Swedish retail trade has experienced a very positive trend in recent years. In fact, sales of food and beverages have increased every year between 2000 and 2009. During 2009, sales within the total food retailing market (including also other daily commodities) reached SEK 251 billion (€23.6 billion). However, due to high price increases, the actual sales volume in 2009 was only marginally higher than the year before. Food Retail Market 2009 Food retail market includes sales of both food and other daily commodities (such as chemico-technical and household paper products, flowers, tobacco and magazines). Sales of speciality items are excluded. Sales SEK million M-share % 160 2 330 440 3 170 6 100 44 100 118 300 30 400 27 000 219 800 18 47 12 11 88 276 51 69 9 36 Other stores* -- 31 100 12 -- • Total -- 250 900 100 -- Type of Store Hypermarkets Supermarkets Discount stores Convenience stores • Total Number of Stores * Includes smaller kiosks, tobacconists, fruit and candy stores, health food stores, bakeries, meat and deli stores, fish stores, food halls, street markets, drugstores, pharmacies, etc. Sources: Fri Köpenskap, Market Magasin 6 Sales per store in SEK million Market Brief – Food Products In Sweden, most retail sales of food pass through supermarkets and other general grocery stores with a wide assortment of foodstuffs and household items such as paper products, chemical products, toiletries, flowers, newspapers and tobacco. There are approx. 6,000 grocery stores with a full line of food and other household items, of which half are larger stores, such as hypermarkets, supermarkets and discount stores, and half are smaller convenience stores. Discount stores with a limited assortment have in recent years obtained a relatively large market share, approx. 12%. There are also a large amount of bakeries, fruit stores, deli stores and other singleline stores as well as kiosks and street markets. In addition, there are state-run liquor stores, which are the only retailers that have the right to sell alcoholic beverages, such as wine, spirits and strong alcoholic beer. 2.3.2 Foodservice Sector During 2009, sales of food and beverages within the foodservice sector amounted to approx. SEK 109 billion (€10.3 billion), which indicates that this sector absorbs about a third of consumers total food expenditures. Sweden actually rank’s as one of Europe’s leading markets for out-of home meals. According to a recent study, the average Swedish consumers had meals outside their homes 168 times during 2009. For other European countries like France, Italy and Spain, the corresponding figure was only slightly over 100 per year. In total, the foodservice-sector comprises approx. 31,000 units, such as restaurants, coffee shops, fast food outlets and canteens. The restaurant sector, which account for about 70% of the sales volume, comprises over 18,000 units, of which 12,000 are restaurants, coffee shops, and hotels, and 6,000 are fast-food outlets. Most of the units in the restaurant sector are family run businesses, but there are also a few large national chains, especially within the fast food and hotel segments. A trend is the fast growing number of ethnic restaurants and fast food outlets, as well as coffee shops. The canteen sector (also called contract catering market) account for 30% of the sales volume and includes 12,000 units, of which a large share is located in schools, hospitals, day-care and old age centres. Local, regional or national authorities and agencies run the majority of these canteens. There are also a number of staff canteens in large office and industrial complexes, either run by the companies themselves or by national restaurant chains. Food Service Market 2009 Type of Outlet Number of Outlets Restaurants, Coffee shops, Fast food Canteens • Total 18 500 12 500 31 000 Sales SEK million M-share % 77 000 32 000 109 000 71 29 100 Sources: Delfi, Statistics Sweden 7 Market Brief – Food Products 2.3.3 Food Processing Industry The Swedish food processing industry counts as an important market segment for foreign suppliers of foodstuffs. Even though domestic producers and companies still supply the main part of the raw materials and food ingredients used, imports are on the increase. The food processing industry consists of about 3,100 companies with 52,000 employees. In 2010, the estimated net turnover amounted to approx. SEK 200 million (€21.0 billion), which means that food manufacturing accounted for about 10% of Sweden’s total industrial output. The most important sectors within the Swedish food industry are bakeries, meat plants, and dairies, with more than 50% of the value of output. However, domestic producers mainly supply these sectors, as well as the milling, sugar and spirits industries. Food Processing Industry 2008-2010 Industry Sector Employees 2008 2009 2010 Companies 2010 Bakery Meat Dairy Fruit & Vegetables Brewery & Soft drinks Chocolate & Confectionary Fish and Seafood Milling & Starch Spices & Condiments Ready-to-eat Spirits & Wine Oils & Fats Animal feed Coffee Sugar Other 14 400 12 000 6 100 5 100 3 900 2 900 1 900 1 600 1 500 1 000 900 1 700 700 500 500 500 14 700 10 900 6 100 4 900 3 900 2 500 1 900 1 700 1 500 1 400 1 000 1 200 700 500 500 900 13 900 10 800 6 400 4 300 3 900 2 400 1 900 1 700 1 500 1 300 1 000 800 700 600 500 1 000§ 1 331 458 134 200 81 203 204 110 53 64 48 44 91 29 5 110 • Total 55 000 54 300 52 600 3 165 Source: Statistics Sweden The branches, which depend mostly on imports, are the coffee, oils & fats, spice & condiments, chocolate & confectionary, and fish & seafood industries. Also manufacturers and canners of fruit juices, and fruit & vegetables, largely depend on imports. In recent years, also the meat industry has become a large importer. For more details about Swedish food manufacturers, see chapter 4.6. 8 Market Brief – Food Products 3 Imports and Exports Sweden has traditionally been more or less self-sufficient in basic foods like meat, dairy products and cereals. However, during the last two decades, especially since joining the EU in 1995, imports have shown a steady yearly increase, also regarding the basic "domestic" products. The total degree of self-sufficiency is at present estimated to be about 65-70%, and thus 30-35% is imported. At the same time, also exports have shown a large increase, which means that the domestic food industry is a growing importer of raw food materials and food ingredients. Sweden imports almost twice as much food products as it exports. Imports in 2010 amounted to SEK 95 billion (equivalent of €9.9 billion), an increase by 3% compared to the previous year, when measured by local currency. Exports amounted to SEK 54 billion (€5.6 billion), an increase by 9% in local currency. The net trade gap between imports and exports thus decreased in 2010, and now amounted to 43%, compared to 46% two years earlier. The Swedish Food Distribution Products traditionally supplied domestically • Dairy products • Meat products (fresh meat recently imported) • Cereals (mainly wheat, rye) Products not produced within Sweden • Most fruit items (except temperate fruit) • Green coffee, tea and cocoa • Spices and herbs • Wine 3.1 Products produced only part of the year • Fresh vegetables • Temperate fruit (apples, berries, etc.) Products imported in large quantities • All kinds of fish & seafood products • Fresh meat products • Sauces, dressings, vinegar and oils • Ready-to-eat and other convenience foods • Frozen, canned and dried food products • Animal feed Imports Imports of food and beverages have shown a steady increase during the last couple of years. Between 2006 and 2010, the import value has grown by 30%, when measured by local currency. During 2010, imports amounted to SEK 94,900 million (€ 9.9 billion), an increase of 2.7% compared to the preceding year. The primary food import consists of food, which is not at all produced within Sweden such as citrus fruit, nuts, green coffee, tea, cocoa, spices and wine, and also of products, which are only produced during a part of the year, for example fresh vegetables and most fresh fruit, such as apples. Other notable import items are fish & seafood products (including re-exports of farmed fish), sauces and dressings, ready-to-eat meals, certain canned, frozen and dried foods, as well as animal feed. And as said earlier, also an increasing degree of meat, dairy and cereal products are imported. Even if imports comprise a large number of items, twelve food products accounted for almost 70% of the total food imports during 2010, see table on the following pages. 9 Market Brief – Food Products Ranked by product groups, the two largest categories are fish and seafood products (25%) and fruit & vegetables (18%), whether fresh or processed. Other important product groups are meat products and beverages, as well as cheese, chocolate and confectionery, green coffee, oils & fats, and animal feed. Even though the market for meat products mainly is supplied by domestic production, it has in just a few years become the third largest import product group. Processed food items account for over 60% of all food imports. The five most important categories are oils & fats, wine, cheese, filets of fish, and cuts of beef. See also Appendix 1 and 2 for further data. Food items showing the largest growth in imports during the last three years are cocoa paste, powder and butter (81%), fresh and frozen fish and seafood (35%), coffee (33%), charcuterie and delicatessen (33%), spices (27%), prepared and processed seafood (25%), fish fillets (24%), and dairy products (22%), see also Appendix 1 and 2. About 70% of all food imports are normally imported from the European continent, of which other EU-countries account for the dominant part. However, it should be noted that some imports from the EU in the statistics actually have their origin in countries outside of the EU. A typical example is fruit from Latin America that is delivered to Sweden via ports in Germany, Belgium or the Netherlands. This means that EU imports are somewhat overestimated in the data. In addition, Sweden imports a lot of farmed fish from Norway, which to a large extent is reexported to other countries. Four countries account for about half of the total import value: Denmark, the Netherlands, Norway, and Germany. OECD countries have during the last couple of years accounted for 90% of total imports, which means that non-OECD countries have had a share of just 10%. Of the non-OECD countries, the largest exporters to the Swedish market are Brazil and Colombia (mostly coffee), Costa Rica, Guatemala and Panama (bananas and coffee), as well as Kenya (coffee) and Thailand (mostly exotic fruits, both canned and frozen items). Other notable exporters are China, India, Vietnam, the Philippines, Indonesia, Malaysia, Chile, Egypt, Israel, Lebanon, Morocco, and South Africa. 3.2 Domestic Production and Exports Traditionally, the Swedish food industry has been geared towards the domestic market and only 10-15% has been exported. But since joining the EU in 1995, exports have seen a steady increase year by year. During 2010, the export value amounted to SEK 53,800 million (€5.6 billion), 9% more than the preceding year. The main export item is fish and seafood products, which accounts for about 1/3 of all food exports (which as stated earlier, includes re-exports of farmed Norwegian fish). Other important export items are spirits, refined oils and fats, and basic cereal products (mostly rye and wheat). About 2/3 of food exports are highly processed foodstuffs, which have seen a steady increase during the last few years. The largest Swedish export item is vodka, with the Absolut brand as the leading item, distributed to over 100 countries. 10 Market Brief – Food Products Other important export items are bakery products (mainly rye crisp bread, biscuits and other sweet bakery goods, frozen bread, and rusk), canned fish and seafood products, chocolate and confectionary, liquid fats and butter fat mixtures, filets of fish, roasted coffee, and milk powder. It should be noted that several of largest export items, especially roasted coffee, chocolate bars, processed fish and seafood products, and refined oils and fats, fully or to a large extent are made from imported raw materials. The most important export markets for the domestic food industry are other EUcountries (especially Denmark, Finland, Germany and France), accounting for over 70% of the total export value. Other large markets were Norway and the USA (vodka, roasted coffee, and cereals). See also table Appendix 1, Imports and Exports of Food. Imports and Exports of Foodstuffs By Value 2010 Product Value SEK million Imports Exports Net import Gap % 2008 2010 Live Animal Meat products Dairy products and Eggs Fish & Seafood products Cereal & Bakery products Fruit and vegetables Sugar and sugar confectionery Coffee, tea, chocolate, spices Animal feed Other food products Beverages Tobacco Oil seeds & oils and fats 304 9 842 7 046 23 487* 4 501 16 533 2 179 7 687 3 055 6 040 8 329 1 287 4 577 167 2 060 3 591 19 069* 6 089 2 830 1 244 3 526 1 195 5 646 6 263 567 1 575 + - 137 7 782 3 455 4 418 1 588 13 703 935 4 161 1 860 394 2 066 720 3 002 + - 29 76 44 31 38 85 32 65 75 33 12 64 68 45 79 49 19 35 83 43 54 61 7 25 56 66 • Total 94 867 53 822 - 41 045 - 46 43 Difference * Including re-exports of farmed Norwegian fish Source: Statistics Sweden Food Imports by Product Groups By Value 2009-2010 Product Value SEK million 2009 2010 Change % ± 09-10 Share % 2010 Live Animal Meat products Dairy products and Eggs Fish & Seafood products Cereal & Bakery products Fruit and Vegetables Sugar and sugar confectionary Coffee, tea, chocolate, spices Animal feed Other food products Beverages Tobacco Oil seeds & Oils and fats 386 9 750 7 010 19 991 4 838 16 790 2 299 6 802 3 429 6 371 8 845 1 333 4 548 304 9 842 7 046 23 487 4 501 16 533 2 179 7 687 3 055 6 040 8 329 1 287 4 577 + + + + + 21 1 1 17 7 2 5 13 11 5 6 3 1 0 10 8 25 5 18 2 8 3 6 9 1 5 • Total 92 392 94 867 + 3 100 Source: Statistics Sweden 11 Market Brief – Food Products 4 Channels of Distribution Four trade groups, ICA, Coop, Axfood and Bergendahls, with both retail and wholesale activities, dominate the Swedish distribution of food and beverages to the retail sector. All four groups have also built up their own buying and import departments. These trade groups import some of their general food supplies by themselves, especially items bought in high volumes, and some through independent wholesalers acting as importers or agents. There are also wholesalers for different segments of the food sector. Thus, the convenience store segment is mainly supplied by specialised wholesalers, of which the leading ones are Axfood Närlivs, Menigo and Privab. The foodservice sector (hotels, restaurants and catering establishments) is supplied by several wholesalers, of which four dominate the market, Servera, Menigo. Svensk Cater and Martin Olsson. Besides these groups, imports are also conducted by importing wholesalers specialised in certain food items such as fresh fruit & vegetables, cheese & egg, fish, meat products, health foods, confectionary or alcoholic beverages. Specialised wholesalers may distribute their goods either via the large retail groups, catering or convenience store wholesalers, or directly to independent chains, large food stores, or catering chains and large units. There are also some importers specialised in selling to the food industry, including bakeries. However, large food manufacturers often conduct their own buying. Food Importers/Wholesalers A selection of the largest importers and wholesalers within the Swedish food wholesale trade. Retail Groups with integrated retailing and wholesaling activities • ICA Group • Coop Group • Axfood (Axel Johnson) • Bergendahls Food Convenience Store Wholesalers • Axfood Närlivs • Menigo (Brakes Group) • Privab Foodservice Wholesalers • Servera (Axel Johnson) • Menigo (Brakes Group) • Svensk Cater (Euro Cater) • Martin Olsson Fresh Fruit & Vegetables Wholesalers • Saba Trading (Dole) • Everfresh (Total/Fyffes) • ICA Frukt & Grönt (ICA) • Ewerman Bakery Ingredients Wholesalers • KåKå (Orkla Group) • Kobia 12 Market Brief – Food Products 4.1 Retail Groups As mentioned above, the Swedish food-retailing sector is highly concentrated. Four trade groups, with both integrated retail and wholesale activities, dominate the market: ICA - Sweden’s largest food retailer, has 1,350 stores and a market share of about 38%. Coop Group - has 720 stores and approx. 16% of the whole food market. Axfood - has about 340 general grocery stores and approx. 700 convenience stores. The market share is around 16%. Bergendahls Food - has 180 stores and a market share of 5%. These four groups account for about 75% of the total retail market for foodstuffs and other everyday commodities. However, if only sales of ordinary grocery stores are counted (excluding small convenience stores and speciality food stores) their combined market share is even higher, about 95%. All these groups are also cooperating with retailing groups in other Scandinavian or European countries, especially regarding imports. In recent years, two foreign-based discount chains have been established in Sweden, Lidl of Germany and Netto of Denmark. Even though these chains have built up their own supply system in Sweden, all imports are coordinated with their headquarters in Germany and Denmark respectively. Their combined market share is still rather insignificant, about 4%, but it is expected to rise substantially within the next few years. Another large food retailer is Reitan Servicehandel (with headquarters in Norway) which runs 7-Eleven and other convenience stores. In addition there are several petrol store chains as well as smaller independent stores and so called ethnic food stores (usually run by immigrants). These stores are generally supplied by specialised convenience store wholesalers, see Section 4.2 below. Food Retailing Statistics 2009 Sales of groceries and other daily commodities. Other products excluded. Group Food sales SEK million ± % ICA Group Coop Group Axfood Bergendahls Food • Sum Lidl Netto Reitan Convenience stores Other grocery stores • Sum 96 700 39 500 39 400 11 300 186 900 5 400 3 600 4 300 11 100 8 600 219 800 + + + + + + + + + 5.1 4.0 2.0 13.8 4.2 7.4 16.7 25.0 4.5 1.1 4.1 Speciality food stores • Total 31 100 250 900 + + 5.7 4.3 Number of food stores 1 350 720 1 030 180 3 280 140 110 520 1 290 760 6 100 Market share % 38 16 16 5 75 2 1.5 1.5 4.5 3.5 88 12 100 Sources: Company information, Fox Research 13 Market Brief – Food Products About 12% of the food retailing market consist of speciality food stores such as pastry shops and bakeries, meat and deli stores, fish stores, health food stores, fruit & candy stores, kiosks, street markets, and non-food retailers (such as drugstores, pharmacies, tobacconists, and florists). Depending on line of business, these stores are either customers of specialised wholesalers or buy their supplies from cash and carry-units. 4.1.1 ICA Group The ICA Group, with headquarters in Stockholm, has retail subsidiaries in Sweden (ICA Sverige), Norway (ICA Norge) and in the Baltic countries (Rimi Baltic). With 2,200 stores and a combined turnover of SEK 93 million (€9.8 billion), the ICA Group and its affiliated stores form together the second largest retailer within the Scandinavian grocery sector. The ICA group is the clear market leader in Sweden (38% market share) and number four in Norway, and one of the top three retailers in the Baltic countries. All Swedish ICA stores are owned by independent retailers, who are members of the ICA Association, which in turn controls half of the ownership of ICA AB, the parent company. Royal Ahold, based in the Netherlands, controls the remaining part. The Royal Ahold Group is one of the world’s largest retail chains, with activities in several European countries as well as in the USA. The Swedish retail business is handled by the subsidiary ICA Sverige and consists of approx. 1,340 different types of ICA food stores, from small neighbourhood stores to large superstores and hypermarkets. ICA Sverige coordinates questions of common interest to all Swedish ICA operations. It also function as the ICA retailers company for marketing, logistics, distribution, accounts, retail development, training and financing/administration. The buying department, which is organised within the parent company ICA AB in Stockholm, has been established to coordinate all buying activities of both ICA in Sweden and Norway. A special unit located in Helsingborg in south Sweden, ICA Frukt & Grönt, handles imports of fruit and vegetables. During the last couple years, ICA have also been coordinating buying and trademarks with Ahold in the Netherlands. ICA is since many years also engaged in import and buying cooperation with the Kesko Group, Finland’s second largest food retailer. ICA Sweden Retail Statistics 2010 Sales include both food and non-food articles. Profile ICA Maxi ICA Kvantum ICA Supermarket ICA Nära • Total Source: ICA 14 Type of store hypermarket large superstore supermarket minimarket Number of stores 72 116 443 716 1 349 Total sales SEK million 26 204 21 836 29 903 14 327 92 970 Sales per unit SEKm 364 188 68 20 69 Market Brief – Food Products 4.1.2 Coop Group The co-operative KF group and its affiliated regional cooperative societies is the second largest food retail group in Sweden, with approx. 16% of the market. The co-operatives are owned by approx. 3.2 million individual members, which mean that about 60% of all Swedish households are owners of the Coop Group. KF and the affiliated co-operative societies operate over 700 retail stores nationwide, such as hypermarkets, supermarkets and minimarkets. The Coop stores have introduced Sweden’s largest assortment of organic and environmental friendly products, as well as an assortment of ethnic foodstuffs. Wholesaling, importing and distribution of food is managed by Cilab AB, a newly formed company. Another company, Coop Trading A/S, based in Copenhagen, Denmark, handles part of the group’s international purchases of branded and private label products. Coop Trading is owned jointly by the consumer cooperative organisations in Scandinavia - Coop Sweden, Coop Danmark, Coop Norway and the S-Group/SOK (Finland). The stores belonging to these four groups account for about 30% of the total food retail market in Scandinavia. It should be noted, that imports of fresh fruit and vegetables are handled by Everfresh, an independent importer (see Section 4.4 below). Coop Retail Statistics 2009 Sales include both food and non-food articles. Profile Coop Forum Coop Konsum* • Total Type of store hypermarket supermarket Number of stores Total sales SEK million Sales per unit SEKm 65 660 725 17 550 28 950 46 500 270 44 64 * Including Coop Nära minimarkets and Coop Extra superstores. Source: Market Vem-är-vem 4.1.3 Axfood Axfood is a trading, marketing and distribution company, with primary operations within the retail and wholesale trade in Sweden. The company, which is listed on the Stockholm stock exchange, is part owned by the Axel Johnson Group (45%). Axfood, which has about 1,000 stores around the country has a market share of about 16%. At the end of 2009, also the independent supermarket chain Vi, which has a strong market presence in Stockholm, became part of the Axfood group, which increased the market share with 2 percentage points. The retail activities include supermarkets and discount stores, of which the majority are wholly owned, as well as convenience stores, which are run by independent retailers. Both own and independent stores normally purchase all their goods through the central buying department of Axfood, called Axfood Products & Purchasing (APP). APP purchase about 20,000 food and other consumer goods items from more than 2,000 suppliers. 15 Market Brief – Food Products APP handles all imports (except fresh fruit and vegetables, which is conducted by Saba Trading, see Section 4.4). APP is also responsible for the development of private labels. Axfood works closely with United Nordic, a part-owned company that import items together with wholesalers in Denmark (Dagrofa/Supergros), Norway (NorgesGruppen/Unil) and Finland (Tuko Logistics). The retail groups behind United Nordic account for about 20% of the total Scandinavian food retail market. Wholesale activities include Dagab, a logistics company for the retail operations, and Axfood Närlivs wholesaler for the convenience store sector. The Axel Johnson Group, which is Axfood’s largest owner, also owns Servera, a wholesaler for the foodservice sector. In addition, Axel Johnson runs Åhléns, Sweden’s only nationwide department store chain. Axfood Retail Statistics 2009 Sales include both food and non-food articles. Profile Type of store Willys* Hemköp Tempo & Handlarn • Total Discount store Supermarket Convenience Vi-chain** Supermarket Number of stores Total sales SEK million Sales per unit SEKm 150 150 660 970 20 900 10 500 4 100 35 500 139 70 6 37 60 4 800 80 * Including Prisextra discount stores ** Part of Axfood from the end of 2009 Source: Market Vem-är-vem 4.1.4 Bergendahls Food Bergendahls Food, a retailer and wholesaler based in south Sweden, has approx. 180 own and affiliated stores. The overall market share is 5%, but in south Sweden the share is substantially higher, over 20%. The main retail activity comprises the CityGross chain, large discount superstores at present mostly situated in the south and middle part of the country. Bergendahls Food has embarked on a massive expansion for the CityGross chain, which has resulted in over 30 new superstores all over the country in just a few years. This has increased the group's market share substantially. Bergendahls Food is also the main supplier to several independent supermarkets. During the end of 2009, Bergendahls formed a new national retail group, Matrebellerna (the Food Rebels), consisting of both of its own CityGross stores and independent food stores around the country. Bergendahls Food, which supplies own and affiliated stores as well as independent stores, handles import and wholesaling activities. However, the importation of fresh fruit and vegetables is handled by Everfresh, see Section 4.4. There is also a unit for cash & carry, Bergendahl Snabbgross, which caters to convenience stores and restaurants. 16 Market Brief – Food Products Bergendahls Food Retail Statistics 2009 Sales include both food and non-food articles. Type of store Profile CityGross Matrebellerna* • Total Number of stores Total sales SEK million Sales per unit SEKm 26 159 185 7 500 4 800 12 300 288 30 66 Hypermarket Supermarket * Part of Bergendahls Food from the end of 2009. Source: Market Vem-är-vem 4.2 Wholesalers for the Convenience Store Sector There are about 2,500 food stores with a full line of food and grocery items, which do not belong to one of leading retail groups. Most of these stores are convenience stores, small neighbourhood stores, or food departments in petrol stations. Their combined market share is about 10% of the total food retail market. As a rule, convenience stores are supplied by specialised convenience wholesalers, of which the two largest are Axfood Närlivs (Axfood Group) and Menigo (Brakes Group). Another nationwide supplier is Privab, consisting of 7 independent wholesaling companies, cooperating under one umbrella. Axfood Närlivs, Sweden’s largest wholesaler for the convenience store sector, has about 600 convenience stores as customers, as well as numerous kiosks and singleline shops. Convenience Wholesaling Groups Statistics 2010 Sales SEK million 2010 2009 Group Axfood Närlivs Menigo Foodservice* Privab Grossisterna 5 248 4 466 805 5 063 4 568 668 Number of Local branches Employees 8 6 9 435 806 131 * Menigo is also a wholesaler for the foodservice sector Sources: Company information, Fox Research 4.3 Wholesalers for the Foodservice Sector A few large and specialised catering wholesalers dominate the distribution of food products to hotels, restaurants and catering establishments. The seven largest wholesaling groups control about 65% of total sales, while direct deliveries from local establishments such as bakeries, dairies, butcheries and delikitchens, account for most of the remaining part. The most important wholesalers are Servera and Martin Olsson (which have announced plans to merger in 2012), Menigo Foodservice (Brakes Group, Europe’s largest foodservice wholesaler), and Svensk Cater (part of EuroCater, with headquarters in Denmark). All of them have built up their own import departments. There are also several locally strong wholesalers, especially in Stockholm and other large metropolitan areas. In addition, there are many small and medium-sized wholesalers, often specialised in certain product groups or market segments. 17 Market Brief – Food Products The most important of these companies are Dafgård (frozen foods), Arno Holm (Asian foods), Trinity (delicatessen), and KåKå and Kobia (raw materials and ingredients for bakeries, coffee houses and pastry shops). Food Service Wholesaling Groups Statistics 2010 Sales SEK million 2010 2009 Group Servera Menigo Foodservice* Svensk Cater Martin Olsson Dafgård** KåKå Kobia ML Mårdskog & Lindkvist Trinity Arno Holm Stiab 7 072 4 466 2 611 2 184 1 934 914 474 426 151 136 46 Number of Local branches Employees 6 743 4 568 2 535 1 875 1 989 904 437 416 106 138 59 14 6 20 11 1 3 3 2 1 2 1 1 590 806 480 515 951 120 88 87 28 33 14 * Menigo includes wholesaling also to the convenience store sector ** Dafgård also includes manufacturing of frozen foods Sources: Company information, Fox Research Food Service Wholesaling Groups: Market Shares 2010 Company Servera Menigo Svensk Cater Martin Olsson Other Wholesalers • Total Market share % 28 12 12 10 38 100 Sources: Servera, Fox Research 4.4 Importers of Fresh Fruit and Vegetables Three groups, ICA Frukt & Grönt, Everfresh and Saba Trading, dominate imports and distribution of fresh fruit and vegetables. All three companies are headquartered in Helsingborg, in south Sweden. ICA Frukt & Grönt, with an estimated 30% market share, is the buying division within the ICA Group for all fresh fruit and vegetables. It also supplies independent stores and restaurants. Everfresh, subsidiary of Total Produce/Fyffes, with headquarters in Ireland, has in recent years taken a large share of the Swedish market for fresh produce. New customers include both Coop Sweden and the Bergendahls Group. Saba Trading is one the leading Scandinavian importer and distributor of fruit, vegetables and houseplants. The group is the main supplier of fresh produce to all food stores within the Axfood group as well as to several leading convenience store chains and large restaurant chains. Saba Trading is a subsidiary of Dole, the world's largest producer and marketer of fresh produce, and also one of the largest import companies within the European market. 18 Market Brief – Food Products There are also a large amount of medium and small importers/wholesalers of fresh fruit and vegetables. However, as a rule these importers only buy their products from other Scandinavian or European sources. 4.5 Importers of Alcoholic Beverages The selling of alcoholic beverages (wine, spirits and strong alcoholic beer) is subjected to special rules in Sweden. A state monopoly, Systembolaget, has the sole rights of over-the-counter retail sales. However, alcoholic beverages are also sold through licensed restaurants. Since a few years, import, production and wholesaling of alcoholic beverages is open to all companies that have acquired a special alcoholic license. Imports are now handled by some 700 licensed manufacturers, agents, importers, wholesalers and breweries. Licensed Importers of Alcoholic Beverages Selected list of some large licensed importers of alcoholic beverages Company Company Food Service Wholesalers Servera Menigo Svensk Cater Martin Olsson Axfood Närlivs Importers Systembolaget Altia (Finland) Fondberg & Co Chris Wine & Spirits Vin Trädgårdh Stellan Kramer Nigab (Hans Just, Denmark) Philipson Söderberg Maxxium Primewine Breweries Carlsberg Spendrups Åbro Source: Fox Research Distribution to both Systembolaget's liquor stores and the restaurant sector is carried out partly by Lagena (a subsidiary to Systembolaget) and partly by licensed distributors. 4.6 Importers of Raw Materials and Food Ingredients Imports of raw materials and food ingredients to food manufacturers is conducted either by importers and agents specialised in selling to this sector, or in the case of large manufacturers, by the companies themselves. Considering the many different kind of food materials and ingredients involved, there are a large number of importers and agents involved in this field. Some of the largest specialised importers of food ingredients are Norfoods, Boden & Lindeberg, B. Engelhardt, and Smith & Son. Regarding bakery ingredients, also KåKå and Kobia are important. Several of the large manufacturers are also among the largest importers of raw materials. This is especially the case for manufacturers of oils and fats (Aarhus Karlshamn), animal feed (Lantmännen), spirits (V&S), juices (Arla Foods, Skånemejerier, Milko), fish and seafood (Abba Seafood, Findus), frozen vegetables (Findus, Procordia Food), coffee (Kraft, Nestlé, Löfbergs, Arvid Nordquist), chocolate (Kraft, Cloetta), and herbs, spices and ethnic foods (Santa Maria). 19 Market Brief – Food Products The manufacturing sector is characterized by a high degree of concentration to a few large companies. Farmer cooperatives, whether Swedish or co-owned with farmers in other Scandinavian countries, account for a large part of the Swedish food processing industry. The farmer cooperatives are thus dominant within the meat, dairy, cereal, starch and animal feed sectors. About 30% of the total food production in Sweden is carried out by foreign owned companies. The Norwegian group Orkla is the owner of three leading Swedish food companies: Procordia Food (canned, dried and frozen foods), Abba Seafood and Kåkå (bakery ingredients importer and wholesaler). There are also several multinational food companies with production units in Sweden: Unilever (convenience foods), Kraft Foods (chocolate and coffee), Barilla (Wasa crispbread), Carlsberg (beer, soft drinks and water), Pernod Ricard (Absolut vodka), Hilton Food, Nordzucker (Nordic Sugar) and Findus (canned and frozen foods). Other large food manufacturers include the Scandinavian groups Aarhus Karlshamn (refined oils and fats), Fazer (chocolate and bread) and Paulig (Santa Maria spices and condiments). Large Swedish Food Manufacturers Turnover and sales are for 2010 or latest available figures. Rank Company Sector 1 2 3 4 5 Arla Foods Sweden* Scan Sweden (HK Scan) Lantmännen (Sweden) V&S (Pernod) AarhusKarlshamn Sweden Dairy products and juices Meat, ready-to-eat products Cereal, feed and poultry products Vodka, spirits Oils and fats 6 7 8 9 10 Findus Sweden Procordia Food (Orkla) Skånemejerier Carlsberg Sweden Coca Cola Sweden 11 12 13 14 15 16 17 18 19 20 Turnover SEK million Employees Number 13 053 9 512 4 900 4 804 4 419 3 200 2 860 2 000 440 578 Frozen & canned products Convenience foods Dairy products and juices Beer, soft drinks, mineral water Soft drinks and mineral water 3 805 3 337 3 305 3 194 2 823 845 993 746 1 107 765 Spendrups Nordic Sugar (Nordzucker) Pågen Milko Hilton Food Group Beer, soft drinks, mineral water, wine Sugar and molasses Bakery and cereal products Dairy products and juices Specialist (private label) meat packer 2 836 2 708 2 509 2 259 2 070 1 117 467 1 304 641 400 Santa Maria (Paulig) Gunnar Dafgård Atria Scandinavia Abba Seafood (Orkla) Fazer Bageri Spices, ethnic foods Frozen meat and ready-to-eat prds Meat products Fish and seafood Bakery products 1 959 1 934 1 917 1 291 1 273 498 951 942 423 744 3 793 3 497 2 391 399 422 278 Multinational food companies Incl sales of both manufactured and imported products 1 2 3 Unilever Sweden Kraft Foods Sweden Nestlé Sweden Margarine, oils, sauces, ice-cream Coffee, chocolate, snacks Convenience foods *Arla Foods Sweden is part of Arla Foods, with headquarters in Denmark. Source: Company annual reports 20 Market Brief – Food Products 5 Market Access As a full member of the European Union (EU), Sweden is also a part of the EU customs union. This means that there are no trade barriers between Sweden and other EU-countries. All imports from countries outside the EU are subject to import tariffs, which vary from 0 to 25%. Furthermore, some of these imports have to be delivered to the EU on a quota basis. However, developing countries enjoy preferential treatment under the Generalized System of Preferences (GSP), which grants tariff reductions. Furthermore, countries that are beneficiaries of the special incentive arrangement for sustainable development and good governance (GSP+) enjoy duty free access for all products. In addition, imports from the Least Developed Countries (LDCs) enjoy duty and quota free access for most agricultural products, under the Everything But Arms (EBA) arrangement. EU regulations regarding food labelling, nutritional information, additives and food control are now in effect in Sweden. However, under a transitional period, some Swedish regulations will still be applicable. More information about the EU customs duties, regulations and other market requirements can be obtained from the EU Export Helpdesk for Developing Countries as well as from other EU sites, see box below. See also Appendix 6, for more links to other national and European agencies. Internet sites about EU customs duties and regulations EU Export Helpdesk for Developing Countries EU Bilateral Trade Relations EU General Systems of Preferences (GSP) 6 http://exporthelp.europa.eu/ http://ec.europa.eu/trade/creating-opportunities/bilateral-relations http://ec.europa.eu/trade/issues/global/gsp/index_en.htm Market Prospects Imports of food products have increased considerably since Sweden joined the EU and imports now account for over one third of total food consumption. A substantial part of imports, about 40%, consists of products that are not (or cannot be) produced within the country, such as juice, coffee, wine, tea, cocoa, and certain vegetables and fruits, as well as fresh fish and seafood products. But an increasing part of imports constitute of products that are competing with domestically produced items. EU and OECD countries supply the largest part of imports. In fact, only 10% are imported from developing countries. The main imported items from developing countries consist of fresh produce (e.g. citrus fruit, bananas and other tropical fruit, as well as vegetables), bulk items that are mixed and repacked in consumer packages by domestic packers (e.g. juice, nuts and spices), and raw materials for domestic manufacturers, such as green coffee, oils and fats, and animal feed ingredients. 21 Market Brief – Food Products In recent years, imports from developing countries have also constituted a reasonably large amount of processed food and beverage products, such as canned fruit, canned seafood, frozen vegetables, sauces, and wine. A market characteristic is that health, environmental and social issues have started to play a significant role in the food trade. Organic and Fair Trade labelled products have therefore achieved a relatively large share in a short period. At the same time products that are seen as healthy and nutritious have shown significant sales increases in recent years. Another trend is the interest for ethnic food with an authentic exotic taste. Several ethnic food items have therefore been among the fastest growing product categories within the retail trade. The positive trend for organic, fair trade, nutritious, or ethnic products is expected to maintain over the next few years, which means that new suppliers are needed, including suppliers in developing countries. The prospects for exporters in developing countries wishing to enter the Swedish market depend on the type of product in question. Obviously, there will be a continued demand for products, which either are not at all produced within the EU, or only produced within the EU during part of the year. On the other hand, exporters that have to compete with suppliers within the EU can only expect a successful entry into the Swedish market if superior quality and/or favourable prices can be offered. In conclusion, interesting prospects exist for exporters in developing countries who can supply quality products at competitive prices. 22 Market Brief – Food Products Appendix 1 Imports and Exports of Food, by Value 2008-2010 Product Meat products Import Value in SEK Million 2008 2009 2010 ± 08-10% Export Value in SEK Mill. 2009 2010 9 748 7 415 2 333 9 750 7 735 2 015 9 842 7 730 2 112 + + - 1.0 4.2 9.5 1 935 895 1 040 2 060 1 037 1 023 6 245 3 418 2 827 7 010 3 609 3 401 7 046 3 606 3 440 + 12.8 + 5.5 + 21.7 3 136 700 2 436 3 591 561 3 030 17 783 15 684 2 099 19 991 17 779 2 212 23 487 21 179 2 308 + 32.1 + 35.0 + 9.1 15 393 14 342 1 051 19 069 17 863 1 206 4 796 554 519 133 2 104 780 706 4 838 482 515 144 2 132 822 743 4 501 501 523 119 1 990 773 587 6.2 9.6 + 0.8 - 10.5 5.4 0.9 - 16.9 5 887 1 451 10 91 3 389 142 804 6 089 1 644 39 52 3 459 146 749 16 708 4 571 2 554 6 377 1 745 1 462 16 790 4 599 2 819 6 167 1 945 1 260 16 533 4 915 2 531 6 250 1 739 1 085 1.0 + 7.5 0.9 2.0 0.3 - 25.8 2 811 680 592 852 532 156 2 830 703 650 653 663 179 14 507 805 3 652 3 034 364 339 336 567 5 410 15 472 827 3 850 3 210 413 378 423 535 5 836 15 906 852 3 566 4 048 660 317 425 463 5 575 + + + + + + 9.6 5.8 2.4 33.4 81.3 6.5 26.5 18.3 3.0 10 397 919 2 494 1 037 17 103 142 1 608 4 077 10 416 720 2 665 1 081 22 116 164 1 669 3 979 - soft drinks and mineral waters - alcoholic beverages 7 917 1 125 6 792 8 845 1 160 7 685 8 329 1 164 7 165 + + + 5.2 3.5 5.5 6 527 354 6 173 6 263 469 5 798 Oil seeds Oils & Fats Animal feed Live Animal Tobacco 772 4 506 3 064 342 1 192 538 4 010 3 429 386 1 333 682 3 895 3 055 304 1 287 - 11.7 - 13.6 0.3 - 11.1 + 8.0 121 1 594 1 027 186 528 192 1 383 1 195 167 567 87 319 92 392 94 867 49 542 53 822 - fresh and frozen meat - processed products Dairy products & Eggs - cheese - other dairy products & eggs Fish & Seafood products - fresh and frozen - processed products Cereal & Bakery products - cereals (wheat, rye, etc.) - rice - flour, grains and starch - bakery products - pasta products - other (cornflakes, müsli, etc.) Fruit & Vegetables - vegetables, fresh, frozen or dried - vegetables, prepared or preserved - fruits and nuts, fresh or dried - fruit and nuts, prepared or preserved - fruit and vegetable juice Other food products - sugar, molasses and honey - chocolate and sugar confectionery - coffee, raw and roasted - cocoa, paste, powder and butter - tea - spices - margarine and cooking oils - other food products Beverages • Total + 8.6 Source: Statistics Sweden 23 Market Brief – Food Products Appendix 2 Imports of Certain Prepared and Processed Food Products, by Value 2008-2010 Product Meat products - Dried and salted meat products - Charcuterie and delicatessen Value in SEK Million 2008 2009 2010 ± 08-10 % 324 562 365 614 359 749 + + 11 33 Dairy products - Cheese 3 413 3 609 3 606 + 6 Fish and Seafood products - Fish fillets - Dried, salted or smoked fish - Prepared and prepared fish products - Prepared and processed seafood products 3 056 2 640 1 180 919 3 679 1 998 1 187 1 025 3 786 2 430 1 155 1 153 + + 24 8 2 25 Cereal based products - Bakery products - Pasta products - Cornflakes, popped popcorn (maize) 2 104 780 753 2 132 822 720 1 990 773 675 - 5 1 10 Fruit and Vegetable products - Prepared and processed vegetables, frozen - Prepared and processed vegetables, canned or dried - Jams and marmalade - Prepared and processed fruit and nuts - Fruit and vegetable juice 526 1 848 295 879 1 462 558 2 078 288 974 1 260 552 1 813 259 863 1 085 + - 5 2 12 2 26 Other food products - Sugar - Chocolate and sugar confectionery - Roasted and instant coffee - Tea - Cocoa paste, powder and butter - Sauces - Vegetable oils and fats 424 3 652 340 324 363 1 215 640 397 3 850 417 360 413 1 376 530 463 3 566 492 300 660 1 347 576 + + + + - 9 2 45 7 82 11 10 Beverages - Beer and cider - Wine - Spirits 821 4 461 1 332 879 4 990 1 601 802 4 678 1 528 + + 2 5 15 Source: Statistics Sweden 24 Market Brief – Food Products Appendix 3 Retail Sales of Food, by Value 2007-2009 Product Group Dairy Products, Eggs & Fats Milk, cream, yoghurt, eggs Cheese Margarine and butter Cooking and salad oils Meat Products Fresh and frozen meat Cured meats and provisions Ready-to-eat prds (incl. frozen items) Fish & Crustacean Products Fresh and frozen fish and crustaceans Processed fish and crustacean products Fruit & Vegetables Fresh fruit and berries, incl frozen Dried fruit Canned fruit products Fresh vegetables & potatoes, incl frozen Dried vegetables Canned vegetable products Processed potato products Bakery and Cereal Products Bread, pastries Flour, grains, müsli, etc. Pasta Rice Coffee, Tea, Cocoa mixes Coffee Tea Cocoa and chocolate mixes Other food products Chocolate, sweets and ice cream Marmalades and fruit preserves Sugar and syrup Sauces, condiments, dressings Salt and spices Other food products Beverages Fruit and vegetable juices Soft drinks & mineral water Beer Wine Spirits • Total Retail sales in SEK Million 2007 2008 2009 ± 07-09% Share % 2009 25 975 12 599 13 376 3 337 793 28 651 13 507 15 144 3 731 857 30 442 14 264 16 178 3 796 902 + + + + + 17 13 21 14 14 16.2 29 954 12 438 13 852 3 664 31 035 12 533 14 551 3 951 32 638 13 938 14 626 4 075 + + + + 9 12 6 11 15.0 9 879 4 681 5 198 9 931 4 514 5 417 10 466 4 626 5 830 + + 6 1 12 4.8 29 837 10 776 1 539 361 11 639 197 2 540 2 795 31 606 11 171 1 807 432 12 506 226 2 557 2 906 32 170 11 053 2 071 299 12 272 252 3 187 3 036 + + + + + + + 8 3 35 17 5 28 25 9 14.8 24 660 18 381 3 607 1 967 705 26 203 19 261 3 900 2 188 855 27 384 20 037 4 113 2 349 884 + + + + + 11 9 14 19 25 12.6 5 050 4 017 696 337 5 053 4 054 727 272 5 544 4 444 761 340 + + + + 10 11 9 1 2.6 25 582 16 176 1 274 815 4 645 162 2 510 27 620 17 299 1 338 793 5 045 170 2 976 28 574 18 084 1 391 823 5 092 180 3 004 + + + + + + + 12 12 9 1 10 11 20 13.1 39 805 4 972 6 536 7 819 13 886 6 593 41 274 5 129 6 395 8 661 14 605 6 484 45 348 5 977 6 982 9 399 16 024 6 966 + + + + + + 14 20 7 20 15 6 23.4 194 873 205 960 217 253 + 11 100.0 Source: Statistics Sweden 25 Market Brief – Food Products Appendix 4 Direct Consumption of Food, by Quantity 2006-2009 Product Group Per capita consumption kg 2006 2007 2008 2009 Total Consumption, tonnes 2008 2009 Dairy Products, Eggs & Fats 183.2 179.8 179.3 178.1 1 652 300 1 655 900 Milk, cream, yoghurt, milk powder Cheese Eggs Margarine and butter Cooking and salad oils 142.5 17.8 10.0 10.9 2.0 139.1 17.7 9.6 11.6 1.8 138.8 17.8 10.0 11.2 1.5 137.1 18.0 10.1 11.6 1.3 1 279 300 163 800 92 300 103 200 13 700 1 274 500 167 300 94 000 107 600 12 500 Meat Products 83.5 83.5 82.8 81.9 764 400 761 600 Fresh and frozen meat Cured meats and provisions Ready-to-eat products (incl. frozen items) 42.5 24.1 16.9 43.8 23.3 16.4 46.1 23.8 12.9 46.5 23.3 12.1 425 400 219 800 119 200 432 300 216 800 112 500 Fish & Seafood Products* 25.3* 26.4* 25.2 25.4 238 000 245 000 Fresh, chilled or frozen fish and seafood* Prepared or preserved fish Prepared and preserved seafood 13.0* 10.4 1.9 14.0* 9.3 2.1 Fruit & Vegetable Products 13.6* 10.8 2.0 13.7* 9.5 2.0 138 800* 86 900 19 300 2 205 200 2 147 000 Fresh fruit and berries Frozen fruit Canned and dried fruit Marmalades and fruit preserves Fruit juices and nectars (litres) Nuts and almonds Fresh vegetables (excl. potatoes) Frozen and dried vegetables Canned vegetables Fresh potatoes Frozen and canned potato products Potato mixes (incl. starch) Potato chips Soups, made from fruit and vegetables 64.4 0.7 5.5 7.8 21.8 2.3 54.9 6.0 14.9 45.9 8.6 0.7 1.4 3.8 65.3 0.8 5.5 7.4 23.6 2.5 52.9 6.2 15.3 44.9 9.0 0.6 1.6 4.6 64.1 0.8 5.5 7.5 22.0 2.6 53.0 6.2 16.3 44.5 9.0 0.6 1.7 4.5 57.4 1.1 4.8 7.3 22.0 2.7 53.9 6.1 15.9 44.7 8.9 0.6 1.8 4.0 597 500 7 800 51 300 68 700 202 800 24 300 489 100 57 100 149 800 410 700 83 200 5 900 15 800 41 200 533 200 10 000 44 800 67 600 202 800 25 300 501 200 56 400 147 900 415 400 82 900 5 400 17 100 37 000 Bakery Products 75.2 72.3 76.5 77.6 705 000 722 000 Soft bread & pastries Crisp bread, rusks Biscuits 66.3 3.8 5.1 63.8 3.5 5.0 68.4 3.5 4.6 69.5 3.6 4.5 630 300 32 700 42 100 646 800 33 200 41 800 Cereal Products 30.8 30.2 33.3 32.2 307 100 301 300 7.7 2.9 1.3 4.1 9.5 5.4 7.4 3.4 1.3 3.7 8.8 5.6 10.1 3.0 1.3 4.0 9.0 5.9 10.1 2.8 1.2 3.5 9.4 5.2 92 700 28 100 11 800 37 300 83 100 54 100 94 200 26 700 11 300 32 900 87 800 48 400 10.8 11.2 11.2 11.3 103 200 105 700 8.5 0.2 2.1 8.4 0.4 2.4 8.3 0.4 2.5 8.2 0.4 2.7 76 700 3 700 22 800 76 700 3 800 25 200 Other food products 49.5 52.5 52.6 53.8 485 900 501 500 Confectionery (chocolate and sweets) Sugar and syrup Honey Sauces and dressings Mustard, spices and salt Ice cream 15.1 6.9 0.7 11.7 2.9 12.2 15.6 6.7 0.7 14.7 3.0 11.8 15.7 6.7 0.6 15.9 2.7 11.0 15.1 6.9 0.6 18.0 2.8 10.4 145 200 61 500 5 300 147 000 25 500 101 400 140 800 64 400 5 800 167 500 26 500 96 500 Beverages (litres) 178.5 176.7 172.4 177.0 1 589 300 1 646 400 Soft drinks & mineral water (litres) Beer (litres) Wine and spirits (litres) 101.2 54.1 23.2 881 600 481 100 226 600 912 500 492 500 241 400 Flour (mostly wheat and rye) Oat grains, incl. other cereal grains Mixes Müsli, cornflakes, popcorn Pasta Rice Coffee, Tea, Cocoa Coffee Tea Cocoa and chocolate mixes * Figures from 2000 are based on estimated data. Source: Swedish Board of Agriculture 26 238.7 240.2 238.3 231.2 132 400* 87 300 18 300 98.6 53.6 24.5 95.6 52.2 24.6 98.1 53.0 25.9 Market Brief – Food Products Appendix 5 Facts about Retail Groups ICA Group Parent Company Ownership Turnover Headquarters ICA AB ICA AB is owned by Hakon Invest AB (40 percent) and the Netherlands-based Royal Ahold N.V. (60 percent). Due to shareholders' agreement, neither party has control of ICA AB, and both share equal voting power. Hakon Invest is majority owned (67%) by the ICA Association, which in turn is owned by the ICA-retailers in Sweden. Royal Ahold is a holding company that conducts retail operations, primarily in Europe and the US. SEK 93,860 million (2010), including Norway and the Baltic countries Stockholm Retail Sweden Parent company Total retail sales Headquarters Internet site ICA Sverige AB SEK 92,970 million (2010), including privately owned ICA-stores Stockholm www.ica.se KF Group (Coop Sverige) Parent Company Turnover Headquarters Kooperativa Förbundet (KF), the Swedish Co-operative Union SEK 36,660 million (2010) Stockholm, Sweden Food Retailing Division Turnover Total retail sales Headquarters Internet site KF Grocery Retail Group SEK 32,540 million (2010) SEK 46,500 million (2009), including affiliated regional cooperatives Stockholm www.coop.se Axfood Parent Company Ownership Turnover Total retail sales Internet Axfood AB Axel Johnson AB (46%), Others (54%) SEK 34,260 million (2010) SEK 40,300 million (2009), including affiliated stores www.axfood.se Axel Johnson Group Parent Company Axel Johnson AB Headquarters Stockholm Internet site www.axeljohnson.se Bergendahls Food Parent Company Group Turnover Bergendahl & Son AB SEK 9,999 million (Sep 2009/Aug 2010) Bergendahls Food Turnover Total retail sales Headquarters Internet site SEK 9,099 million (Sep 2009/Aug 2010) SEK 12,300 million (2009), including affiliated stores Hässleholm (South Sweden) www.bergendahls.se 27 Market Brief – Food Products Appendix 6 Useful Internet Links Information about the EU EU Export Helpdesk Information about duty rates, import regulations and trade data EU Trade Relations EU official website EU Statistics – Eurostat EU Food Safety CBI Centre for Promotions http://exporthelp.europa.eu http://ec.europa.eu/trade http://europa.eu/index_en.htm http://epp.eurostat.ec.europa.eu http://ec.europa.eu/food/index_en.htm www.cbi.eu Information about Sweden Sweden’s official website Open Trade Gate Sweden Trade rules and requirements National Food Administration Food safety and regulations Board of Agriculture Statistics Sweden Swedish Trade Federation Swedish Chambers of Commerce Business contacts, market information National Board of Trade Swedish Associations of Agents Network for agents and brokers Swedish Food Federation Other useful links eMarket Services Online business directory FAO - Food and Agriculture Org. www.sweden.se www.opentradegate.se www.slv.se/en-gb www.sjv.se www.scb.se www.svenskhandel.se (enter English) www.swedishchambers.se www.kommers.se www.agenturforetagen.se www.li.se www.emarketservices.com www.fao.org Appendix 7 Currency Conversion Average exchange rate of the Swedish currency SEK Average rate in SEK 2005 2006 2007 1 Euro € 1 US Dollar $ 9.28 7.35 9.26 7.48 * Average rate for January – April 2011 Source: Swedish Central Bank (Riksbanken) 28 9.25 6.76 2008 2009 2010 2011* 9.61 6.58 10.62 7.65 9.54 7.20 8.89 6.42 The Nordic Market There are many similarities among the Nordic countries with regard to culture, language, political and social systems etc. Also when it comes to consumer behaviour and product preferences you find many similarities. When entering one of the Nordic markets it therefore might be relevant to consider the possibilities in the other countries as well. Three of the Nordic countries work with trade and import promotion aktivities. Below you will find contact details of the import promotion organisations in Finland, Norway and Sweden. Population: Denmark Finland Norway Sweden 5.5 million 5.4 million 4.9 million 9.4 million Norway Denmark Sweden Finland Denmark Norway As from January 2010, Denmark has no trade promotion programme. The earlier programme (DIPP), which was financed by Danida (the Danish International Development Assistance), ended on 31 December 2009. Department of international trade cooperation (DITC) is established according to an agreement between NORAD (Norwegian Agency for Development Cooperation) and HSH (Federation of Norwegian Commercial and Service Enterprises). DITC promotes imports from developing countries. Contact details: HSH – Department of International Trade Cooperation (DITC) P.O. Box 2900 Solli, NO-0230 Oslo, Norway Phone: +47-2254 1700 E-mail: [email protected] Internet: www.hsh-org.no Finland Sweden The Finnish business partnership programme, Finnpartnership, provides advisory services for business activities of Finnish companies in developing countries and financial support in the planning, development and implementation phases of a project. The programme is carried out in cooperation with Sida (Swedish International Development Cooperation Agency). It focuses on business contacts, market information, training and extended contacts in order to promote export from developing countries. Contact details: Contact details: Finnpartnership - Finnish Business Partnership Programme c/o Finnfund P.O. Box 391 FI-00121 Helsinki, Finland Phone. +358-9-3484 3314 Fax +358-9-3484 3346 Internet: www.finnpartnership.fi Swedish Chambers of Commerce Trade Promotion P.O. Box 16050 SE-103 21 Stockholm, Sweden Phone: +46-8-555 100 00 Fax: +48-8-566 316 30 E-mail: [email protected] Internet: www.swedishchambers.se January 2010 Swedish Chambers of Commerce Trade promotion PO Box 160 50 SE-103 21 Stockholm, Sweden Phone: +46 (0)8 555 100 000 www.swedishchambers.se www.chambertrade.com [email protected] The production and distribution of this report is funded by Sida (Swedish International Development Cooperation Agency).
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