New figures from Statistics Norway show that food prices rose extraordinarily in April. Prices of food and non-alcoholic beverages rose 10.5 percent last year.
But the so-called Producer price index for the food industry, which shows that purchasing costs for grocery chains, increased from April 2022 to April 2023 by up to 19.3 percent. Thus there is a clear mismatch in price and development cost.
– If our costs go up, we have to pass them on to customers one way or another. The question is how, Banpress owner Christian Leke tells Netavien.
Luck knows that sooner or later something has to happen.
Read also
The price of healthy food has skyrocketed
Simple math
– This is relatively simple mathematics. If we don’t set prices or take other actions at one point or another, we are “out of work.” We have to adapt, either by raising prices, getting poor offers, or shorter hours.
Experts expect a stronger price increase in the future. Twice this year, Kiwi surprised its rivals by not raising prices.
– It is the kiwi who decides, everyone is looking forward to the kiwi how it should be, says Likee.
Norway’s largest grocery chains are owned by some of Norway’s richest people, such as the Johansson family (Norgesgruppen) and Rytan. As for happiness, Kapital magazine rated it last fall His real wealth is 1.3 billion Norwegian kroner. It also includes the property values of IK Lykke AS. Christian Leake is the son of Bonpris founder Trond Leake.
– None of you from families of merchants donate money over time?
No, we’re not trying to make money.
—but it hasn’t been that hard in our industry, at least not for a really long time, Lykke admits. Then we talk about the period after the Second World War.
Read also
Food prices will rise: These figures make a dismal prediction
It became more difficult
– What does Bunnpris do to succeed in the competition?
– It’s becoming more and more difficult for us to keep up, so we have to make better offers. Offers make up a larger portion of sales than before. It’s gotten a little heavier, but we’re surviving.
Offers are thinner than before. Small bulk cargo is not reduced to NOK 9.90 per hectare, but to NOK 5.90 per hectare. The trader replies that it is difficult for us to offer the same goods as our competitors, then we will not go beyond the noise in the market.
– Are you losing money at today’s prices?
– No, it’s tough competition, but we’re trying to stay on the right side of the line.
Read also
Rimma and the kiwi warn: – We are watching closely
You will earn 117 million in 2022
Bonpris received NOK 117 million before tax through owner company IK Lykke AS last year, down from NOK 139 million in 2021.
Historically, agricultural products have given poor prices to merchants, Lake says. Meat in particular has had a very low profit, and the chains have yet to raise milk prices.
Tyne was clear that dairy farmers should be prioritized in this year’s agricultural settlement, which was completed on Tuesday.
– But milk consumption dropped dramatically. The number of cows has dropped from over 300,000 to just over 200,000. The average Norwegian dairy farm is one-sixth of a corresponding Danish farm, so it’s not easy. We make quite a bit of money from milk, Laiki says, but milk was probably a more important commodity in the “good old days.”
Read also
Warning: What’s happening in Kiwi stores right now is bad news
Grandiosa’s pizza is important
He says it’s important to be good at things that occupy people, like mincemeat and diapers. For a group of people, a dramatic life change occurs when they become parents.
– Another product that has a lot of competition is Pizza Grandiosa. Earnings here are very low, Lykke claims.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”
