In 2015, said Hansa Borg even up the nationwide distribution agreement with Rema 1000. It confirmed ceo Lars Midtgaard opposite Fanaposten yesterday.
In 2015, we had a nice sales trend, and had 22 percent of the market through Rema 1000. In november 2015, during the negotiations for 2016 with Rema 1000, we felt that we were faced with unreasonable demands. We should pay more for the location in the stores and at the same time get less shelf space and product lines. It led to that we said up a commercial annex to the agreement with Rema 1000, which dealt with the conditions for volume, placements, and rates because the premise was changed. We wanted a binding agreement with new terms. The cancellation was made with respect to the renegotiation. We believe there must be balance between what one pays and what one gets back. Already at that time we got a wind of that Rema 1000 has its bestevennstrategi was under development, ” says Lars Midtgaard.
He admits that the very process of negotiations between suppliers and grocery store chains is quite complicated, and may not be as easy to understand for consumers.
It is consumers brands, merchandise they can find in the stores. From February, they will see the result of the negotiations between Rema 1000 and Hansa Borg Breweries, ” says Midtgaard.
Powerful reduction
the Negotiations between Hansa Borg Breweries and Rema 1000 chain has not brought forward. Yesterday morning met Hansa Borg-ceo Lars Midtgaard the press to tell what is going on.
” We have had two meetings just in the last week, and negotiations have led to that we have gone from being a domestic supplier in 2015 to become a local provider for Rema 1000-chain. From now on we shall only be represented Retail stores with five lines in Bergen and Hordaland, as well as a few items in the Vest-Agder and Østfold. In 2015 we sold 14.5 million litres of our products through Rema 1000. We estimate that after the transformation we will be down in the 1 million litres traded through Rema 1000 their business. This is a dramatic decline, and I have not witnessed in my 25 years in the dagligvarebransjen, ” says president and ceo Lars Midtgaard in Hansa Borg Breweries.
The five product lines of beer from Hansa Borg, which is to find at Rema 1000 is: Hansa Pils, Hansa Draught beer, Hansa IPA, Hansa White Ipa and Hansa Zero.
Find new friends
Midtgaard says that Hansa Borg lose 95 per cent of the volume they have sold through Rema 1000.
– Roughly 1 million gallons of around five per cent of the 15 million litres. The figures we have obtained from Nielsen, and it is the official figures, ” says Midtgaard.
Hansa Borg-the director is aware of the strategy forward.
” We will not lay us down and die. Rema 1000 accounts for 25 per cent of the dagligvarebransjen in Norway. The other grocery chains account for 75 per cent of the market. We still have the Coop, Norgesgruppen and Bunnpris. We must strengthen the cooperation with these, and now we’ll find ourselves our own best friends. We will never, says Midtgaard.
Hope to compensate
” We think this is a pity. It is a pity for consumers who have fewer choices when they shop at Rema 1000, and it is a pity for the Rema-the merchants, who are standing on and do a good job. We would like to been with and followed up, but the Rema group-management will it differently. As it is now, we apologize for the situation. We must prove that we are worth a bestevennsstempel, without that we must buy ourselves to such a position, ” says Lars Midtgaard.
What are the consequences of volumnedgangen will get for the employees of the Hansa Borg Breweries, do not know the Hansa-management yet.
We have implemented cutbacks in the workforce earlier. Now I hope the pursuit of their own best friends to compensate the loss of Rema 1000 volumes. If people continue to purchase our products through other dealers, we will see this pretty quickly on the volumes. Therefore, we choose to await the situation throughout the spring. We have an ongoing dialogue with the employee representatives in the company, ” says Midtgaard.
- hansa’s own sake
I’m irritating to me over the virkelighetsbeskrivelsen as Hansa Borg Breweries. In the entire 2016 has not Hansa Borg Breweries had some agreement about national delivery to Rema 1000. The reason for this lies in the fact that Hansa Borg Breweries said the nationwide distribution agreement in 2015. It’s no use to come now and accuse Rema 1000 for that there is a national agreement, ” says Eivind Madsen.
Similar terms
Madsen was one of several local Retail merchants which in its time pushed that the Hansa would get national distribution agreement with Rema 1000. He will not be with on that Rema 1000 sticking sticks in the wheels of the Hansa Borg Breweries. “Best friend-the strategy” is about to get better prices from grossistleddet.
I react when Hansa Borgs representative says that they do not have anything in against to compete against the small breweries as long as it is on equal terms. Rema 1000 is the smallest of the grocery chains, and we don’t have similar conditions as our competitors. It is what is the background of this whole case. Suppliers “premieres” the grocery chains where large quantities they sell. Let us say that the Rema 1000 has two similar goods of different brands, such as jam. The Rema 1000 25 per cent of the market with each of these two brands. If we remove one of an item type, and so we are investing in that we sell double of what mark we have left, is our market share to 50 per cent of the mark we have left. Then give the one the contractor us a better price on the purchase. That is what this case is all about. Rema 1000 want to get the same sales prices as competitors. Then there is competition on equal terms, ” says Eivind Madsen.
- No longer locally
Madsen can also provoke by Hansa Borgs appeal to lokalpatriotisme, and he believes that after that the ownership is no longer local, it will be wrong to play on the string.
– Hansa can no longer call himself a bergensbedrift, in my opinion. Hansa christmas beer 2016 was not a time manufactured in Bergen. The values that are generated at Kokstad, with the exception of the workplaces, sent as surplus to the parent company in southern california. Hansa and Ringnes has been just as little local. The same also applies Friele, which is owned by a Dutch company. Profits and value creation disappears away from Bergen, if one looks away from the workplace. For comparison, all Rema 1000 merchants in Bergen, locally owned companies as taxes to Bergen, ” says Eivind Madsen.
- We taxes to the county of Hordaland
Hansa Borgs managing director would like to comment on Madsen statements in this way:
– We have our head office in Kokstad. We taxes to the county of Hordaland, and we invest in production locally in order to secure the jobs of the 200 employees at Kokstad. Out of it, I do not want to comment on Eivind Madsen initiatives, ” says president and ceo Lars Midtgaard in Hansa Borg Breweries.
Despairs
Madsen understands that customers can respond to the strategiendringen as Rema 1000 has added up to, but he observes, that the resurrection was not as great as It did changes a couple of years ago.
It cut out all the eksponeringsfolkene who worked with placing goods in the shelves in the stores. There were so many people who lost their jobs. There was no one who responded to it. I am desperate and sad when people come with things that are obviously incorrect or misleading. All jam in the shelves of our that is of the Rema-the brand is produced by Lerum. We wars on to operate our stores every day, and we are portrayed as if we do not want to sell the products from Hansa Borg. It is the error. 60-70 per cent of the beer sold in my shop is Hansa beer, and we want to continue with that, ” says Eivind Madsen.
