Professional Documents
Culture Documents
Business Sweden
2012-02-10
AGENDA
Business Sweden
3
2012-02-10
THE FOOD SERVICE SEGMENT IS AN IMPORTANT DISTRIBUTION CHANNEL FOR FOOD PRODUCTS IN NORWAY
- Due to Norwegian legislation, only outlets with an area of up to 100 m2 are permitted 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
- Leisure activities such as hobbies, outdoor activities and spending time with family and friends are highly valued - There is therefore a great demand for convenient, time-saving food products that require little preparation
- Norwegians are impulsive consumers that value convenience and availability highly - They have a strong purchasing power and spend a greater part of their disposable income on food and beverages than Swedish consumers
Source: STC Analysis
Business Sweden
4
2012-02-10
- 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 in 2009 - The food service segment had a total growth of 18,8 percent during the period 2004 - 2009
The food service segment is an important sales channel for food products in Norway
- 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
Business Sweden
5
2012-02-10
THE NORWEGIAN FOOD SERVICE MARKET HAS A TOTAL VALUE OF NOK 32 BILLION
Business Sweden
6
2012-02-10
AGENDA
Business Sweden
7
2012-02-10
5% 2% 2% 7%
Outlets
Fast food Full-service restaurants Cafs/Bars Self-service cafeterias Pizza consumer food service 100% Home delivery/take away
29%
27% 28%
Street stalls/kiosks
Cafs, fast food outlets and full service restaurants represent 54 percent of total food service outlets
Source: Euromonitor
Business Sweden
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2012-02-10
AGENDA
Business Sweden
9
2012-02-10
TWO KEY PLAYERS HOLD 94 PERCENT OF THE WHOLESALE FOOD SERVICE MARKET
Nationwide wholesalers
Asko Storhusholdning, owned by Norgesgruppen, is the leading 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 firstmover advantage
Regional wholesalers
Specialist wholesalers
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
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
94 %
6% Business Sweden
10 2012-02-10
AGENDA
Business Sweden
11
2012-02-10
Agent
Full service restaurants Cafs, bakeries and lunch restaurants Premium retail sales channels
SWEDISH PRODUCER
Distributor
Wholesaler
Direct sales
Due to custom regulations, a Norwegian importer is required for Swedish food suppliers
Source: STC Analysis
Business Sweden
12
2012-02-10
AGENDA
Business Sweden
13
2012-02-10
FIVE MAJOR OPERATORS STAND FOR 57,4 PERCENT OF THE NORWEGIAN FOOD SERVICE MARKET (1/2)
Chain concept
Peppes pizza Burger King
Umoe Catering AS 17,2%
Outlets
45 29 4 28 22 8 11 68
Brand value
8,1% 4,1% 2,1% 2,2% 1,3% 0,3% 0,3% 14,3%
Turnover NOK
609 259 000 419 184 000 203 719 000 N/A 21 995 000 21 995 000 N/A 197 331 000
McDonald's is the single largest chain concept in terms of market share and brand value
Source: Euromonitor
Business Sweden
14
2012-02-10
FIVE MAJOR OPERATORS STAND FOR 57,4 PERCENT OF THE NORWEGIAN FOOD SERVICE MARKET (2/2)
Chain concept
Mix JaFs!
Norgesgruppen ASA 12,4%
Outlets
793 43 28 25 13 13 94 476 289 116
Brand value
6,1% 2,5% 0,9% 1,1% 1,3% 0,6% 7,9% 4,6% 5,1% 1,0%
Turnover NOK
78 309 000 N/A 103 336 000 N/A 43 873 000 N/A 83 667 000 1 051 516 000 1 051 516 000 1 051 516 000
Deli De Luca Bon Appetit Le Caf Pizza & Kina expressen Dolly Dimples Narvesen 7Eleven XY
The service retail concepts Mix, Narvesen and 7Eleven have the highest number of outlets and rank high in brand value
Source: Euromonitor
Business Sweden
15
2012-01-23
AGENDA
Business Sweden
16
2012-02-10
Michelin stars
SENTRUM/ AKER BRYGGE Onda by Pal&Ness Argent Fine Dining Dinner Ylajali Oro
17
Restaurant Oscarsgate Haga restaurant Statholdergaarden Feinschmecker Bagatelle (closed 2009, re-opened 2011)
2012-02-10
Business Sweden
AGENDA
Business Sweden
18
2012-02-10
Business Sweden
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2012-02-10
AGENDA
Business Sweden
20
2012-02-10
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
TRENDS
-
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 continue in the future
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
Business Sweden
21
2012-02-10
CONSTRAINTS CONSUMERS Strong brand-awareness and high loyalty to domestic brands MARKET Custom regulations lead to higher import for foreign products costs Premium operators are still mainly located in larger cities such as Oslo, Stavanger, Bergen DISTRIBUTION - A few nationwide wholesalers hold a large part of the market - A certified importer in Norway is required for import of food products
Business Sweden
2012-02-10