Private Label
in
Sweden, Denmark and Norway
Dublin, 2009-04-22
Ms. Callette Terhaerdt
• Owner/MD - Market Link Scandinavia AB
-
Partner search (importers, distributors, agents)
Market research
Preparing/accompanying market orientation trips
Preparing trade show participation
Dublin, 2009-04-22
Sweden:
• 9 million inhabitants
• Area of 449 964 km2 (6.5 x Ireland)
• Main cities Stockholm, Gothenburg, Malmö
• Retail chains:
Coop, ICA, Axfood, Bergendahls
• Fastest growing private label market in Europe
Dublin, 2009-04-22
Current Private Label situation:
• 17% of grocery trade revenue in Sweden comes
from Private label.
• Axfood has highest share of PL versus total sales at
21% and aims to reach 25% by 2010.
• Frozen foods and household products are the main
PL categories.
• Gas-flushed breads and frozen bakery products are
gaining ground.
Dublin, 2009-04-22
Main brands:
• Coop
- Coop (high quality, good price)
- Änglamark (organic, eco-friendly)
- X-tra (fighting brand)
• Axfood
- Eldorado (fighting brand), Aware (fair trade)
- Willy’s, Hemköp, Garant (organic)
• ICA
- ICA
- Euroshopper (fighting brand)
- I Love ECO (organic)
Dublin, 2009-04-22
Future trends:
• PL sales are expected to keep growing, though at a
slower pace.
• All chains see potential for development and
increase of their PL product sales and ranges.
• Trends towards more healthy products.
• Organic, eco-friendly and fair trade products.
Dublin, 2009-04-22
Denmark:
• 5,2 million inhabitants
• Area of 43.000 km2
• Main cities Copenhagen, Århus, Odense
• Retail chains:
Coop, Dansk Supermarked, Supergros
Dublin, 2009-04-22
Current private label situation:
• 26% of products sold in Denmark are private label
• History of discounters, creating a competitive
market.
• Best selling PL categories are frozen foods,
household towels, toilet paper, pet foods, juice,
spices and coffee.
Dublin, 2009-04-22
Main brands:
• Coop
- Coop (high quality, good price)
- Änglamark (organic, eco-friendly)
- X-tra (fighting brand)
• Dansk Supermarked
- Princip (luxury products)
- Minimum (healthy products)
• Supergros
- FirstPrice
Dublin, 2009-04-22
Future trends:
• Chains see potential for development and increase
of their PL product sales and ranges.
• Danes are likely to buy more discount and PL
products in times of economic crisis – bargain
seekers
• Increase in organic products and more healthy
products.
Dublin, 2009-04-22
Norway:
• 4,7 million inhabitants
• Area of 325 000 km2 (4,5 x Ireland)
• Main cities Oslo, Trondheim, Bergen
• Retail chains:
Coop, ICA Norge, Norgesgruppen, Rema1000
Dublin, 2009-04-22
Current Private Label situation:
• Only 9% private label of total grocery sales
Preference for branded products
• Traditional and conservative consumers
• Coop has 20% private label
• Main categories are frozen vegetables, bakery
products, paper and plastics
• Regulated market for food products (no EU
member; import duties).
Dublin, 2009-04-22
Main brands:
• Coop
- Coop (high quality, good price)
- Änglamark (organic, eco-friendly)
- X-tra (fighting brand)
• Norgesgruppen
- FirstPrice (fighting brand)
- Eldorado
• ICA Norge
- ICA
- Euroshopper (fighting brand)
Dublin, 2009-04-22
Future Trends:
•
•
•
•
•
Private label is expected to grow at slow pace
Price competition is expected to increase
Focus on price, health and quality
Increase in sale of organic foods
Chains indicate the need for more clear positioning
on the market
Dublin, 2009-04-22
Country of production:
• Most PL products are produced locally.
• Fresh foods, beverages, dairy products
• Large share of production abroad for dry and
frozen foods
• DK: bakery products from Germany and the
Netherlands.
• Dairy products – local production
Dublin, 2009-04-22
Listing process:
•
•
•
•
•
Contact the PL category manager
Set up a meeting to present products
Listing process 6-12 months (DK: 8-12 months)
Margins differ depending on product group
Chains generally demand BRC and ISO 22000 and
GFSI standards.
• Coop sources PL and branded products through
Coop Trading A/S in Denmark.
Dublin, 2009-04-22
Branded opportunities:
• Organic, fair trade, eco-friendly.
• Time-saving healthy foods
• Frozen products
• In general, difficult for new brands to enter the
market.
Dublin, 2009-04-22
Dublin, 2009-04-22
Conclusions:
• Swedish, Danish and Norwegian markets still have
room for Private Label products
• All chains interested in good PL products at
competitive prices for most of their brands
• Possibilities to capitalise on organic and health
private label trends
• Frozen foods opportunities
• Products with long shelf life
Dublin, 2009-04-22