Retail Food Sector Report for Sweden and Finland
Report Highlights:
The consolidation and restructuring of the Nordic retail food sector offers interesting opportunities for U.S. suppliers in terms of volume and variety of products in demand. Best prospects include tree nuts, dried fruits, processed fruits and vegetables, organic food and products appealing to the health conscious. A major impediment to increased U.S. sales is retailers concerns about the possibility of negative consumer reactions to products containing genetically modified (GMO) ingredients.
SWEDEN AND FINLAND
Food retail sales did not perform up to expectations in 2011, largely due to household uncertainty.Swedish food retail sales rose by 1 percent to US$ 39 billion and Finnish food retail sales were up by 4 percent to US$ 19 billion.
The food retail sector in these markets is predominantly integrated and concentrated. In both Sweden and Finland, the three largest import/wholesale groups supply over 80 percent of the market.
Restructuring of the Nordic retail food sector continues as pan-Nordic mergers and cooperative agreements seek to achieve greater efficiencies and economies of scale to fend off other European competitors. Swedish and Finnish retail chains are meeting the stiff competition through increased
efficiency -- centralizing purchases, forming international alliances and expanding operations within the Nordic/Baltic region. In these concentrated markets where retailers have such large market share, growth at home becomes virtually impossible. Looking abroad, in the form of mergers and cooperation at the international level, has become the only possible path to growth.
