– I am happy because the chains now have said that I will have access to the information necessary to find out where the money goes in this value chain. This has been part of the problem earlier, said Agriculture and Food Sylvi Listhaug (FRP) to Aftenposten.
Inn on the carpet
Friday she called the country’s largest grocery chains on the carpet for the news that food prices rose by 3.2 per cent from June to July – the biggest increase in one month since 1982.
the past 12 months, food prices rose 3.4 percent. Most of the annual rise occurred ie from June to July.
Pointer to vendors
The chains themselves believe the price increase is mainly due to higher prices of our suppliers. The Minister has therefore requested a list of vendors that have increased the prices most.
– I am very pleased that they are willing to give me information about which suppliers should be convened, because some of them has increased prices quite powerful, says Listhaug.
She warns that she will have a meeting with selected providers already coming week.
Disappointed Ica
The meeting Friday came about after several days of fairly heated debate about Norwegian food prices and the reasons for them. Norway Group, Rema 1000, Coop and Bunnpris attended all the meeting.
Ica, which has a market share of almost 11 percent in Norway, however, chose to skip the meeting with the Minister. Aftenposten claimed that they had not time to prioritize it.
– I think it is a shame that the ICA does not show up here, and that they did not find time to be expressing what they mean in such an important debate, says Listhaug.
“Constructive”
Representatives of chains who attended the meeting, described it as “constructive”. The notified transparency in pricing and reasons for the price increase in the summer.
– We are pleased that the minister will go through the entire value chain. It’s very good. The discussion has often stopped at our stores. We should ask what we can and be open about how we calculate the products and prices, says managing director of Rema 1000 Norway, Tom Kristiansen.
Farmers
Listhaug received strong criticism of agricultural organizations and some in opposition in connection with the spring farming settlement.
Minister denies, however, that she takes the opportunity to go for grocery chains to sweeten Norwegian farmers.
– No, the two things have nothing to do with each. The important thing for me is Norwegian consumers. When the price increases more than it has done in one month since 1982, it is not convenient, but absolutely necessary for me to engage me in this.
– So you do not use the price rise to a mark additional opposite chains
– No, I think it is my job to pursue this further. It is difficult to see where the money goes, and so it is important that I now get more information, says Listhaug.
Record year
The three groups that control most of the Norwegian grocery, last year had a profit before tax of over 5.2 billion.
This corresponds to a profit of 14 million every day.
Reitangruppen
For Reitan Group, with Rema 1000 was a record year in 2013, with a profit before tax of 2.6 billion.
This corresponded to an increase in sales of 7.9 percent, and overall was 2013- result is the best Reitan group ever. Rema 1000 has an estimated market share of 23.2 percent.
Norway Group
Also competition in Norway group had a good last year.
The country’s biggest retail player has with the 1700 grocery market share of almost 40 percent. They own chains Ultra, Spar, Kiwi, Joker and Menu.
Last year’s figures show a profit before tax of 2.4 billion. The figures apply to the entire group, and thus includes also money from kiosks (Mix-chain) restaurants (including Dolly Dimple’s) and cafes Kaffebrenneriet.
Coop
Coop in Norway delivered a profit before tax of NOK 222 million in 2013, which includes all co-operative societies.
Rejects monetary motive
Aftenposten has asked the heads of the major chains on price rise and List Haugs initiative.
Tom Kristiansen, Rema 1000
Have you increased the prices in order to improve their own margins?
No, our entire price increase is the increased purchase prices. We will demonstrate for Listhaug.
Do you experience that Listhaug share their worldview?
We are probably not quite agree, but this was a fine meeting and we are probably now a little closer to a common understanding of reality.
Svein Morten Skaldehaug, Coop
Have you increased the prices in order to improve their own margins?
No, we have not increased earnings.
Do you experience that Listhaug share their worldview?
Yes, Listhaug listened and followed up with questions. I think we have a good mutual understanding.
Øyvind Andersen, Norway Group
Have you increased the prices in order to improve their own margins?
No, Norway Group has not increased prices to improve our own margin.
Do you experience that Listhaug share their worldview?
We do not accept in that picture she describes. But she builds knowledge and factual and we find that very constructive.
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