foodservice and premium retail in norway

8/12/2019 Foodservice and Premium Retail in Norway

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ConfidentialFor internal use within client company only

2012-02-10

FOOD SERVICE MARKET IN NORWAY

Oslo, January 2012

Business Sweden


2/21

Market overview

Value and growth

Wholesalers

Operators

Trends

2012-02-103

AGENDA

Business Sweden


3/21

2012-02-104

THE FOOD SERVICE SEGMENT IS AN IMPORTANT

DISTRIBUTION CHANNEL FOR FOOD PRODUCTS IN NORWAY

Norwegian consumers prioritize leisure activities

- Leisure activities such as hobbies, outdoor activities and spending time withfamily and friends are highly valued

- There is therefore a great demand for convenient, time-saving food productsthat require little preparation

Norwegian consumers have a high purchasing power

- Norwegians are impulsive consumers that value convenience and availabilityhighly

- They have a strong purchasing power and spend a greater part of theirdisposable income on food and beverages than Swedish consumers

Source: STC Analysis

Grocery stores in Norway are closed on Sundays

- Due to Norwegian legislation, only outlets with an area of up to 100 m2 arepermitted to stay open on Sundays

- The majority of grocery stores are due to this fact closed on Sundays. The food

service segment is hence the only sales channel for food and beverages

Active, sporty, impulsive,

convenient, status oriented,

eager to spend, time-efficient

Business Sweden


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2012-02-105

THE FOOD SERVICE SEGMENT IN NORWAY HAS

EXPERIENCED A GROWTH IN SALES

Sources: Euromonitor, Virke, STC Interview

The food service segment is an important sales channel for food products in Norway

- The segment has experienced a steady growth in sales and value in spite of the economic downturn in 2008

- Growth rates were lower than the year before: the industry experienced a total growth of two percent in2009

- The food service segment had a total growth of 18,8 percent during the period 2004 - 2009

Due to the economic uncertainty, a shift in consumption patterns could be identified- Full-service restaurants experienced a decline in sales in favor of less expensive take-away outlets

Norwegian households approximately spend 11 percent of their income on food and drinks

- A constantly increasing part of this is consumed in cafs and restaurants

Business Sweden


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2012-02-106

THE NORWEGIAN FOOD SERVICE MARKET HAS A TOTAL

VALUE OF NOK 32 BILLION

Sources: Virke, Euromonitor, Statistisk Sentralbyr

GROCERY RETAIL MARKET

NOK 134 billion

FOOD SERVICEMARKET

NOK 32 billionSERVICE

RETAILMARKET

NOK 15

billion

Service retail is an important distribution channel in Norway

Business Sweden


6/21

Market overview

Structure

Wholesalers

Operators

Trends

2012-02-107

AGENDA

Business Sweden


7/212012-02-108

THERE ARE OVER 12 000 FOOD SERVICE OUTLETS IN

NORWAY

Source: Euromonitor

Cafs, fast food outlets and full service restaurants represent 54 percent of total food service outlets

29%

28%

27%

7%

Outlets

5% 2% 2%

Fast food

Full-service restaurants

Cafs/Bars

Self-service cafeterias

Pizza consumer food service

100% Home delivery/take away

Street stalls/kiosks

Business Sweden


8/21

Market overview

Wholesalers

Operators

Trends

2012-02-109

AGENDA

Business Sweden


9/212012-02-1010

TWO KEY PLAYERS HOLD 94 PERCENT OF THE

WHOLESALE FOOD SERVICE MARKET

94 %Source: NHO Reiseliv, Virke, Markedsfakta.no

Nationwide wholesalers Regional wholesalers Specialist wholesalers

Asko Storhusholdning, owned

by Norgesgruppen, is theleading wholesaler towards the

food service sector in Norway

Servicegrossistene is an

organization of 22 regional

wholesalers that together stand

for 24 percent of total

distribution to the food service

sector in Norway

Positive to launching new

products when there is a first-

mover advantage

In addition to the nationwide

wholesalers, there are also

several regional operators,

generally operating on a local

scale within their county (fylke)

Among these wholesalers,

Gilberg Engros and Furuset

Engros can be mentioned as

examples

There are several niche

operators on the Norwegian

market, generally focused on

premium delicacies

A few of these companies

have their own distribution

channel, but generally they

distribute their products

through larger wholesalers Laks & Vilt centralen and Oluf

Lorentzen are well-known

suppliers of premium products

6 %

Business Sweden


10/21

Market overview

Wholesalers

Route to entry

Operators

Trends

2012-02-1011

AGENDA

Business Sweden


11/212012-02-1012

A NORWEGIAN IMPORTER IS MANDATORY WHEN

EXPORTING FOOD TO NORWAY

Source: STC Analysis

SWEDISHPRODUCER

Certifiedimporter inNorway

Agent

Distributor

Wholesaler

Premium retail

sales channels

Direct sales

Full service

restaurants

Cafs, bakeries

and lunch

restaurants

Due to custom regulations, a Norwegian importer is required for Swedish food suppliers

Business Sweden


12/21

Market overview

Wholesalers

Operators

Trends

2012-02-1013

AGENDA

Business Sweden


13/212012-02-1014

FIVE MAJOR OPERATORS STAND FOR 57,4 PERCENT OF

THE NORWEGIAN FOOD SERVICE MARKET (1/2)

Source: Euromonitor

McDonaldsNorge AS

14,3%

Umoe

Catering AS

17,2%

McDonald's is the single largest chain concept in terms of market share and brand value

Chain concept Outlets Brand value Turnover NOK

Peppes pizza 45 8,1% 609 259 000

Burger King 29 4,1% 419 184 000

TGI Fridays 4 2,1% 203 719 000

Caf Opus 28 2,2% N/A

La Baguette 22 1,3% 21 995 000

Fattigmann 8 0,3% 21 995 000

Pubcompagniet 11 0,3% N/A

McDonalds 68 14,3% 197 331 000

Business Sweden


14/212012-01-2315

FIVE MAJOR OPERATORS STAND FOR 57,4 PERCENT OF

THE NORWEGIAN FOOD SERVICE MARKET (2/2)

PAM AS

7,9%

Reitangruppen

AS 5,6%

The service retail concepts Mix, Narvesen and 7Eleven have the highest number of outlets and rank high in brand value

Source: Euromonitor

Norges-

gruppen ASA12,4%

Chain concept Outlets Brand value Turnover NOK

Mix 793 6,1% 78 309 000

JaFs! 43 2,5% N/A

Deli De Luca 28 0,9% 103 336 000

Bon Appetit 25 1,1% N/A

Le Caf 13 1,3% 43 873 000

Pizza & Kina

expressen

13 0,6% N/A

Dolly Dimples 94 7,9% 83 667 000

Narvesen 476 4,6% 1 051 516 0007Eleven 289 5,1% 1 051 516 000

XY 116 1,0% 1 051 516 000

Business Sweden


15/21

Market overview

Wholesalers

Operators

Premium restaurants

Trends

2012-02-1016

AGENDA

Business Sweden


16/21

2012-02-1017

OSLO HAS A WIDE SELECTION OF RESTAURANTS

DEMANDING HIGH QUALITY PRODUCTS

Source: Aftenposten, VisitNorway,

SENTRUM/

AKER BRYGGEOnda by Pal&NessArgent Fine Dining

DinnerYlajaliOro

OSLO ST

EkebergsrestaurantenLe Benjamin

KlosteretSolsiden

Sult

Michelin restaurants in Norway

FROGNER/MAJORSTUEN

Bygdy all restaurantAlex Sushi

Palace GrillNodee

Restaurant Michelin stars

Restaurant Oscarsgate

Haga restaurant

Statholdergaarden

Feinschmecker

Bagatelle (closed 2009,

re-opened 2011)

Business Sweden


17/21

Market overview

Wholesalers

Operators

Premium Retail sales channels

Trends

2012-02-1018

AGENDA

Business Sweden


18/21

2012-02-1019

PREMIUM RETAIL CHANNELS ARE MAINLY LOCATED IN

OSLO

Sources: STC Analysis

- Jacobs p Holtet (www.jacobs.no) Norways finest selection of

premium food products. Premium grocery store in the outskirts of Oslo

owned by Norgesgruppen

- Centra/Ultra (www.centra.no/www.ultra.no) Norgesgruppens premium

grocery retail concepts with a wide selection of delicacies and premiumfood

- Mathallen(opening 2012) Planned to open in October 2012 in

Grnerlkka, Oslo. Several delicacy stores as well as restaurants are

starting up premises at this covered food market designed to offer a

unique food experience

- Various independent grocery stores with a premium selection of food

products are located in the Oslo area, e.g. Food Story, Fjelbergs fisk &

vilt, Hotel Havanna and Gutta p Haugen

Business Sweden
http://www.jacobs.no/http://www.centra.no/www.ultra.nohttp://www.centra.no/www.ultra.nohttp://www.jacobs.no/


19/21

Market overview

Wholesalers

Operators

Trends

2012-02-1020

AGENDA

Business Sweden


20/21

Dining out: part o f a fashionable lifestyle- Norwegians are expected to increase their consumption

of food and beverages outside of the home environment

- Dining out is considered as part of a trendy and urban

lifestyle, and is also seen as a status statement,

especially in the metropolitan areas

Interest in premium coffee- Coffee house concepts are

increasing in popularity in Norway

and the segment is experiencing a continuous growth

- The concepts are still mainly focused to the Oslo area, but

expansion to other large cities in Norway is expected

- Consumers are also demanding premium coffee through

specialist retail and grocery retail channels

Increased interest in healthy food- Recent studies show that Norwegians have begun to

consume healthy food to a greater extent when ordering

take-away and when dining out

- Food service outlets have therefore introduced healthy

options such as salads and fruit smoothies

- This trend is expected to continuein the future

2012-02-1021

AN INCREASE IN CONSUMPTION THROUGH FOOD SERVICE

CHANNELS IN NORWAY IS EXPECTED

TRENDS

Source: Euromonitor, STC Analysis

Custom regulations are an

implication for foreign suppliers

- There are custom duties related to import of food

products to Norway due to a protective agricultural policy- Hence, imported products generally imply a higher cost

- This can also be seen as an advantage as there are

fewer competitors on the Norwegian market than in the

EU

Business Sweden


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2012-02-1022

DRIVERS AND CONSTRAINTS

DRIVERS CONSTRAINTS

CONSUMER

+ Convenience and accessibility are highlyvalued factors in food consumption

+ Consumers with high purchasing power thatare willing to spend their income on foodconsumption

+ Increasing trend in dining out: considered to bea status statement

MARKET

+ Contiuous growth in market value and anincrease in sales is expected

+ Swedish products are well reputed andgenerally known by consumers and operators

DISTRIBUTION

+ Increasing interest in innovative, premiumproducts

CONSUMERS

Strong brand-awareness and high loyaltyto domestic brands

MARKET

Custom regulations lead to higher importcostsfor foreign products

Premium operators are still mainly located

inlarger cities such as Oslo, Stavanger, Bergen

DISTRIBUTION

- A few nationwide wholesalers hold a large partof the market

- A certified importer in Norway is required forimport of food products

Source: STC Analysis Business Sweden

foodservice and premium retail in norway

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