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
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Market overview
Value and growth
Wholesalers
Operators
Trends
2012-02-103
AGENDA
Business Sweden
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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
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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
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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
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Market overview
Structure
Wholesalers
Operators
Trends
2012-02-107
AGENDA
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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
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Market overview
Wholesalers
Operators
Trends
2012-02-109
AGENDA
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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 %
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Market overview
Wholesalers
Route to entry
Operators
Trends
2012-02-1011
AGENDA
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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
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Market overview
Wholesalers
Operators
Trends
2012-02-1013
AGENDA
Business Sweden
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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
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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
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Market overview
Wholesalers
Operators
Premium restaurants
Trends
2012-02-1016
AGENDA
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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)
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Market overview
Wholesalers
Operators
Premium Retail sales channels
Trends
2012-02-1018
AGENDA
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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/ -
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Market overview
Wholesalers
Operators
Trends
2012-02-1020
AGENDA
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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
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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
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