DOCSLIB.ORG

The Impact of Globalization on Food Retailing in Latvia

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Impact of Globalization on Food Retailing in Latvia ISSN 1822-7996 Ligita MELECE TAIKOMOJI EKONOMIKA: SISTEMINIAI TYRIMAI: 2010.4/1 Ingūna GULBE Juris HĀZNERS The impact of globalization on food retailing in Latvia ćFSFDFOUEFWFMPQNFOUT DPODFOUSBUJPOBOEDPOTPMJEBUJPOQSPDFTTBOEUSFOETJOUIFGPPE HSPDFSZ SFUBJM NBSLFUJO-BUWJBBSFBOBMZ[FEćFJNQBDUPGSFUBJMTFDUPSTDIBOHFTPOEBJSZDIBJOBSFBTTFTTFE BOETPNF JTTVFTSFHBSEJOHMPXQSJDFTPGEFMJWFSFENJMLBSFEFTDSJCFE Keywords: food, grocery retail, concentration, supermarkets, dairy, Latvia. 4USBJQTOZKF BOBMJ[VPKBNJ OBVKBVTJ -BUWJKPT NBJTUP QSPEVLUʸ NBäNFOJOʐT QSFLZCPT SJOLPT QPLZʊJBJ LPO- DFOUSBDJKBJSTVTJKVOHJNPQSPDFTBJəWFSUJOBNBTNBäNFOJOʐTQSFLZCPTTFLUPSJBVTQPWFJLJTQJFOJOJʸUJOLMVJ apžvelgiamos mažos pieno supirkimo kainos. Raktiniai žodžiai:NBJTUBT NBäNFOJOʐNBJTUPQSFLZCB LPODFOUSBDJKB QSFLZCPTDFOUSBJ QJFOJOʐ -BUWJKB JEL ClassificationT--2 Introduction great impact on farming, food businesses, other retailers, trade in processed food %VSJOHUIFMBTUUXPEFDBEFTUIFSFUBJMJOH products and diets. A “supermarket revo- JOEVTUSZJTĕOEJOHJUTFMGJOBTUBUFPGDPO- MVUJPOwIBTCFFOVOEFSXBZJOEFWFMPQJOH TUBOUFWPMVUJPOBOEUSBOTGPSNBUJPO XIFSF DPVOUSJFTTJODFUIFFBSMZT4VQFSNBS- UIF HMPCBMJ[BUJPO NFSHFST BOE BDRVJTJ- kets (here referring to all modern retail, tions, and technological developments XIJDI JODMVEFT DIBJO TUPSFT PG WBSJPVT have changed the retailing landscape formats such as supermarkets, hypermar- ESBTUJDBMMZ $POTUBOUJOJEFT FU BM kets, and convenience and neighborhood ćF SBUF PG UIF TQSFBE PG TVQFSNBSLFUT TUPSFT IBWF OPX HPOF XFMM CFZPOE UIF provided by international retailers (retail- initial upper- and middle-class clientele in ing internationalization), and process of many countries to reach the mass market. grocery retail concentration in develop- 8JUIJO UIF GPPE TZTUFN OPU POMZ USBEJ- ing and transition countries is an issue of UJPOBM SFUBJMFST BSF BČFDUFE CZ UIJT USFOE topical interest because of their potentially UPVDI CVUBMTPUIFXIPMFTBMF QSPDFTTJOH -JHJUB.&-&$&o%SPFD )FBEPG%FQBSUNFOUPG-BUWJBO4UBUF*OTUJUVUFPG"HSBSJBO&DPOPNJDT -FBEJOH Researcher, e-mail: [email protected]. *OHʷOB(6-#&o%SPFD )FBEPG%FQBSUNFOUPG-BUWJBO4UBUF*OTUJUVUFPG"HSBSJBO&DPOPNJDT FNBJMJO- guna@ Leading Researcher, *OHVOB!MWBFJMv. +VSJT)Ƀ;/&34o4DJFOUJĕDBTTJTUBOUPG-BUWJBO4UBUF*OTUJUVUFPG"HSBSJBO&DPOPNJDT [email protected]. 70 Ligita MELECE, Ingūna GULBE, Juris HĀZNERS and farm sectors (Reardon, Gulati, 2008). become increasingly concentrated, the bal- 5+PTMJOH QSFEJDUFEUIBUTVQFSNBS- BODF PG QPXFS CFUXFFO QSJNBSZ QSPEVD- kets have come to dominate the retail dis- FSTBOEUIFJSDVTUPNFSTCFDPNFTTLFXFE tribution of food. 8IFUIFS UIFZ BSF XPSLJOH GPS SFUBJMFST "MBSHFOVNCFSPGBSUJDMFTXJUIUIFSF- or other intermediary traders or proces- sults of research have described the rapid sors, corporate buyers are increasingly spread of supermarkets and predicted its BCMFUPQBZTVQQMJFSTBUSBUFTCFMPXDPN- DPOUJOVBUJPOBOEBDDFMFSBUJPO"ęFS QFUJUJWF MFWFMT ćJT DBO CF UIF DBTF FWFO USBOTJUJPO QFSJPE XBT TUBSUFE JO $FOUSBM in ostensibly competitive retail markets. and Eastern Europe, inter alia Latvia, 4.D$PSSJTUPO BSHVFTUIBU GPS&V- XIFSF UIF SFUBJM TFDUPS XBT QSJWBUJ[FE rope, agricultural economists should give and some domestic-capital market chains more attention to imperfect competition in HSBEVBMMZ FNFSHFE *O UIF NJEEMF PG UIF the food arena, given that European food T UIF NBTTJWF JOĘPXT PG GPSFJHO EJ- marketing practices suggest the presence SFDUJOWFTUNFOUGPMMPXFEBOEMBSHFGPSNBU PG PMJHPQPMJTUJD TUSVDUVSFT BOE HSPXJOH NPEFSO SFUBJM TFDUPS XJUI TVQFSNBSLFUT NBSLFUQPXFS18%PCTPO TUBUFT BOEIZQFSNBSLFUTXBTEFWFMPQFEćFSF- UIBUSFUBJMCVZFSQPXFSNBZEJTUPSUUIFSF- structuring of retail sector is the result of tail market, and may also have immediate the three processes of horizontal integra- BOEEFUSJNFOUBMFČFDUTPODPNQFUJUJPOBU tion, vertical integration and globalization the upstream market level, particularly in (Hendrickson et al., 2001). the areas of food processing and farm pro- Many industrialized countries have duction. restructured their food chains in recent The aim of the study is to estimate de- decades, and have shifted from manufac- velopments and concentration in the gro- UVSFSBOEQSPEVDFSQPXFSUPSFUBJMQPXFS DFSZSFUBJMNBSLFUJOUIF#BMUJD4UBUFTBOE "OEFST )PMMJOHTXPSUI .VS- particularly Latvia, and its impact on dairy QIZ 8IJUFIBMM "TTPDJBUFT chain. 3FUBJMFSTBSFOPXJOBQPTJUJPOUPEJDUBUF The tasks PG UIF TUVEZ BSF UP SFWJFX UFSNT UP GPPE NBOVGBDUVSFST XIP UIFO trends and issues of retail globalization force changes back through the system to and concentration; to estimate the devel- the farm level. Perhaps 50-75 percent of PQNFOUBOEDPODFOUSBUJPOPG#BMUJD4UBUFT UIFUPUBMOFUQSPĕUGPSMBSHFSFUBJMFSTDPNFT grocery market and make comparison GSPNSFUBJMFSGFFTGSPNTMPUUJOHBMMPXBODFT CFUXFFO UIFN UP FWBMVBUF -BUWJBT GPPE display fees, presentation fees, “pay-to- retail development, concentration, struc- TUBZwGFFTBOEGBJMVSFGFFT )FOESJDLTPOFU ture and their trends; to estimate impact of BM (MPCBMMZ UIFSFJTHSPXJOHDPO- processes in grocery retail on food chain cern that the concentration of economic oFNQIBTJ[FPOEBJSZ QBSUJDVMBSMZPONJML QPXFSCZUIFJOEVTUSJFTBMPOHUIFMJOLCF- primary producers or farmers in Latvia. UXFFOQSJNBSZQSPEVDFSTBOEDPOTVNFSTo The principal materials used for the UIF USBEFST QSPDFTTPST BOE SFUBJMFST o JT TUVEJFTBSFBTGPMMPXTEJČFSFOUTPVSDFTPG BČFDUJOH UIF QSPĕUBCJMJUZ BOE MJWFMJIPPET literature, research papers and the reports PGQSJNBSZQSPEVDFSTBOEXPSLFST #VSDI of institutions, published and unpublished -BXSFODF EBUB GSPN $FOUSBM 4UBUJTUJDBM #VSFBV PG As processing and retail markets -BUWJB $4# BT XFMM BT UIF VOQVCMJTIFE THE IMPACT OF GLOBALIZATION ON FOOD RETAILING IN LATVIA 71 JOGPSNBUJPOGSPNSFUBJMĕSNTSFDFJWFECZ VOEFSUBLFOCZUSBOTOBUJPOBMSFUBJMFSTćF BVUIPST WJB QIPOF JOUFSWJFXT 6OGPSUV- DMBTTJD EJTUJODUJPO NBEF IFSF JT CFUXFFO nately, as the scope of the information on AHMPCBMBOEANVMUJOBUJPOBMTUSBUFHJFTBOEJU GPPESFUBJMJOHQSPWJEFECZPďDJBMTUBUJTUJDT FDIPFTEJTUJODUJPONBEFCFUXFFOABHHSFT- JTSBUIFSOBSSPX FWFOGPPESFUBJMUVSOPWFS TJWFMZJOEVTUSJBMBOEAJOUFMMJHFOUMZGFEFSBM is no longer calculated), the study com- TUSBUFHJFT BOE CFUXFFO HMPCBM ADBUFHPSZ piles information gathered from various LJMMFST BOE DPSQPSBUF QBSFOUT *O CPUI sources (private consultancies, market re- DBTFT UIFGPSNFSNPEFMJTBTTPDJBUFEXJUI TFBSDI DPNQBOJFT JOEVTUSZ FYQFSUT ćF format standardization, a centralized bu- estimations of several important indica- reaucracy, export of management ideas and tors vary depending on source. cultures from the core, and the pursuit of ćF TVJUBCMF RVBMJUBUJWF BOE RVBOUJUB- economies of scale in purchasing, market- tive research methods have been used for JOHBOEMPHJTUJDTćFSFBSF 5BCMF EJČFS- various solutions in the process of study: FOUGBDUPST XIJDIDPVMEJOĘVFODFJOUFSOB- analysis and synthesis; logical and abstrac- tionalization processes of retail, inter alia tive constructional; correlation-regression GPPEćFUPQUIJSUZDPNQBOJFTBDDPVOUGPS analysis; data grouping and comparing; around one third of global grocery sales, expert and etc. and in many countries including the UK, UIFUPQĕWFTVQFSNBSLFUTBDDPVOUGPS PSNPSFPGHSPDFSZTBMFT #VSDI -BXSFODF The development and *OUIJTDBTFUIFJNQBDUTPGJODSFBT- concentration of grocery retail ing concentration, particularly at the buyer markets in the Baltic States level, are perhaps most keenly felt by small QSPEVDFST BTUIJTJTXIFSFUIFEJTQBSJUZJO ćF JOUFSOBUJPOBMJ[BUJPO PG SFUBJMJOH JT B QPXFS JT HSFBUFTU 3FUBJMFST CVZFS QPXFS much understudied element of contempo- has been strengthened further as both the SBSZ HMPCBMJ[BUJPO QSPDFTTFT $PF IJHI GSFRVFODZ PG OFX QSPEVDU MBVODIFT $IBSBDUFSJ[JOH IPX JOUFSOBUJPOBMJ[BUJPO and the international procurement strat- has been undertaken is to consider that FHJFT CZ SFUBJMFST JOUFOTJĕFT DPNQFUJUJPO the degree of management centralization among suppliers for getting access to retail Table 1 Factors influencing retail internationalization ‘Push’ factors Facilitating factors ‘Pull’ factors Perceived/imminent saturation Use of surplus capital/access to Unexploited markets in domestic markets cheaper sources of capital Spreading of risk Entrepreneurial vision )JHIFSQSPĕUQPUFOUJBM $POTPMJEBUJPOPGCVZJOHQPXFS *OEVDFNFOUTGSPNTVQQMJFSTUP $POTVNFSNBSLFUTFHNFOUTOPUZFU FOUFSOFXNBSLFUT exploited Public policy constraints Removal of barriers to entry "DDFTTUPOFXNBOBHFNFOU Economic conditions *OGPSNBUJPOBOEDPNNVOJDBUJPO Reaction to manufacturer interna- technologies tionalisation Maturity of format 'PMMPXJOHFYJTUJOHDVTUPNFSTBCSPBE Source: adapted from Coe, 2004. 72 Ligita MELECE, Ingūna GULBE, Juris HĀZNERS Table 2 Estimated market shares by largest retailers in the Baltic States, %, 2008 Estonia Latvia Lithuania 3*.* 22 21 8 VP Market 6 23 44 *,*$PPQFSOJD -820 Aibe - 5 5 ETK 25 - - Selver 18 - - Prisma 6 - - &-7* -7- *FQJSLVNVHSVQB -4- /PSGB --12 Source: adapted from Strategic VANTAGE Consulting, 2009. TIFMGTQBDF $BQSJDF 7PO4DIMJQQFOCBDI BNCJUJPOT UP EFWFMPQ UIF #BMUJD GPPE SF- 2008). UBJMNBSLFUXJUIGPDVTPOEJTDPVOUTUPSFT Grocery or food retail markets in all *OJUJBMMZ QMBOOFE TUPSF PQFOJOHT XFSF #BMUJD 4UBUFT IBWF CFFO HSPXJOH VOUJM SF- CBDLFE CZ UIF BDRVJTJUJPO PG OVNFSPVT cently. Estimated market shares by largest TJUFTJOBMMUISFF#BMUJD4UBUFT-JEMIBEBMTP SFUBJMFSTJOUIF#BMUJD4UBUFTTIPXTPNFTJN- IJSFETPNFTUBČJOCPUI&TUPOJBJO-BUWJB JMBSJUJFTBOETPNFEJČFSFODFT 5BCMF )PXFWFS OPDPOTUSVDUJPOXBTBQQBSFOUMZ ćF BOOVBM SBUF PG NBSLFU FYQBOTJPO TUBSUFEBOZXIFSF*O-JEMBOOPVODFE JO-JUIVBOJBBUJTTPNFXIBUTMPXFS UIBU FOUSZ FČPSUT UP DFBTF EVF UP TFWFSBM UIBO JO -BUWJB BOE &TUPOJB
Load more

Recommended publications
  • Finnish Grocery Trade 2019 Contents
    FINNISH GROCERY TRADE 2019 CONTENTS Regulation should support competition ................................................ 3 The competitive strength of the food supply chain can be improved through cooperation .................................................. 4 Grocery trade is an important part of society ................................... 5 Foodservice wholesale trade in Finland ................................................ 6 Statistics ............................................................................................................... 7 The Finnish Grocery Trade Association .............................................14 Member Companies ......................................................................................15 TEXTS Finnish Grocery Trade Association Translation: Delingua Oy PHOTOS P. 3 SOK, p. 9 Nielsen, other photos FGTA and image banks LAYOUT Tiina Aaltonen, gra & grappo PRINTING Erweko Oy 2019 2 www.pty.fi REGULATION should support competition In 2018, the economy and employment was a long-waited beginning. The rationalisa- in Finland showed a positive trend and tion of regulation should be continued, and we consumer confidence remained strong. The should move towards self- and co-regulation. year was favourable also for the daily con- sumer goods trade as the value of sales grew THE RENEWALS AND REFORMS CAN BE by 3.4% in comparison to 2017. Meanwhile, the REALISED IN A RESPONSIBLE MANNER volume trend of the daily consumer goods market stayed at +0.3%. Like elsewhere in Eu- The daily consumer goods trade has proven to ARTTU LAINE rope, the increase in sales was largely based act responsibly also in the changing regulato- President of the on the rising prices. In Finland, the increased ry environment. Commerce has taken action Finnish Grocery alcohol and tobacco taxes contributed to the to promote the objectives of circular economy, Trade Association trend as well. including collection of packaging, reducing The economic performance is expected to food waste and use of plastic bags, and sav- weaken in the future.
    [Show full text]
  • President and CEO Matti Halmesmäki's Answers to Questions at Kesko's Q1/2012 Media and Analyst Briefing on 26 April 2012
    President and CEO Matti Halmesmäki's answers to questions at Kesko's Q1/2012 media and analyst briefing on 26 April 2012 Heino Ylisipola of Kaleva, Turun Seudun Sanomat and Väli-Suomen Media: Was Kesko interested in acquiring the R-Kiosk chain before it was sold to Norway about a month ago? Matti Halmesmäki: Of course, the chain is interesting as a well-known and significant brand. But we did not participate in the final bidding because we decided to concentrate on our own concepts. The eventual price was quite low, but we don't regret it, even if R-kioski is a well managed business. However, there are certain risks associated with the declining sales of magazines, which will reduce customer flow. In addition, games are going online, opening hours have weakened R-kioskis' competitive advantage, and logistics are so expensive that price competitiveness is difficult to maintain. As for us, we are strongly developing K-citymarket's information and service concept. For example, we will introduce Smartpost automatic parcel points in all K-citymarkets to be operated in connection with the information & customer service desks. Customers can order products online for delivery to the parcel point at any of the over 70 K-citymarkets, plus some of our K-supermarkets. We are aware that with this service, we will support competitors' online trade. But we see customer service as the main thing, and at the same time, the service will help K-citymarkets to increase their own online sales, as it will enable special product sizes or models to be ordered for customers.
    [Show full text]
  • Here Practices Will Be Intimately Connected with Knowledge, and Knowledge Will Create Practices
    mega-trends in Nordic-Baltic food systems MEGATREND 1 Technology will penetrate all areas of social life #1 Technology will penetrate all areas of social life We’re living in the fourth industrial revolution — Industry 4.0 — where practices will be intimately connected with knowledge, and knowledge will create practices. New technologies combined with digital innovations will make it possible to engage with longstanding societal, environmental and economic issues. Furthermore, our personal access to technology, as well as any limits to its access, will continue to influence our relationship with food. In a context in which data is the new gold, collected from satellites, drones, equipment and machines such as those used by the primary sector and the food industry, nature-based solutions will provide a counter-balance to the “tech-can-fix-it” paradigm. MEGATREND 2 Food systems will be redesigned with a new set of goals #2 Food systems will be redesigned with a new set of goals The 21st century is creating further turmoil in food systems. The present challenges associated with food security, new dietary patterns and the increasing perception of food as a lifestyle commodity will result in growing numbers of conflicting ideas regarding how to produce, distribute, sell and consume food. Climate change, loss of biodiversity and environmental degradation will become even larger threats to the Nordic-Baltic region and the world. The agri-food industry will become a key player in reversing many environmental issues. The major challenge will be ensuring diets that support human and planetary health, while striking a balance between promoting international trade in food and agriculture and protecting local food systems.
    [Show full text]
  • Strong Earnings Improvements for Apotek Hjärtat and Rimi Baltic
    Second quarter 2021 Strong earnings improvements for Apotek Hjärtat and Rimi Baltic • Apotek Hjärtat – strong earnings improvement and higher market share • Rimi Baltic – significantly stronger earnings and higher market share • ICA Sweden – stable quarter, higher online costs • ICA Bank – acquisition of Forex's customer portfolios completed • Group earnings and margin on same level as previous year • Covid-19 effects approximately SEK +30 million net (-60) Events after the end of the quarter • No significant events have taken place after the end of the quarter Key data Second quarter Jan-jun 12 months Full year 2021 2020 % 2021 2020 % Jul 2020 - 2020 Group, SEKm Jun 2021 Net sales 32,401 31,924 1.5 63,004 62,290 1.1 126,997 126,283 Operating profit before depreciation/amortisation (EBITDA) 2,836 2,774 2.2 5,467 5,399 1.3 11,209 11,141 Operating profit excluding items affecting comparability 1,446 1,452 -0.4 2,710 2,762 -1.9 5,779 5,831 Operating profit 1,466 1,454 0.8 2,756 2,763 -0.3 5,767 5,774 Operating margin excluding items affecting comparability, % 4.5 4.5 — 4.3 4.4 — 4.6 4.6 Profit before tax 1,365 1,338 2.0 2,557 2,521 1.4 5,344 5,308 Profit for the period 1,139 976 16.7 2,123 1,952 8.8 4,344 4,173 Cash flow from operating activities excluding ICA Bank 3,181 2,911 9.3 4,957 4,920 0.8 10,480 10,444 Return on capital employed, % — — — 9.2 9.0 — 9.2 9.2 Return on equity, % — — — 12.2 11.8 — 12.2 11.7 Earnings per share, SEK 5.64 4.83 16.8 10.49 9.66 8.6 21.48 20.65 ICA GRUPPEN INTERIM REPORT APRIL – JUNE 2021 Page 2 of 39 CEO's comments We had a good performance during the second quarter, where the strongly improved earnings for Apotek Hjärtat and Rimi Baltic are especially gratifying.
    [Show full text]
  • Rail Baltica Global Project Cost- Benefit Analysis Final Report
    Rail Baltica Global Project Cost- Benefit Analysis Final Report 30 April 2017 x Date Table of contents Table of contents ........................................................................................................................ 2 Version ...................................................................................................................................... 2 1. Terms and Abbreviations ...................................................................................................... 3 2. Introduction ........................................................................................................................ 5 2.1 EY work context ................................................................................................................ 5 2.2 Context of the CBA ............................................................................................................ 5 2.3 Key constraints and considerations of the analysis ................................................................ 6 3. Background and information about the project ....................................................................... 8 3.1 Project background and timeline ......................................................................................... 8 3.2 Brief description of the project ........................................................................................... 9 4. Methodology ....................................................................................................................
    [Show full text]
  • Growing a Strong Stable Operation in the Baltics Capital Markets Day, ICA Gruppen 10 December 2014
    Growing a strong stable operation in the Baltics Capital Markets Day, ICA Gruppen 10 December 2014 Edgar Sesemann, CEO Rimi Baltic SIA Rimi Baltic at a glance • Total regional market share: 15% (Nielsen: above 22%) • Number of stores: 243 (235 end 2013) Key figures 2013 Net sales 1,200 MEUR EBIT 35 MEUR Employees 8,200 (FTE) Market Position Stores Estonia #2 84 Latvia #1 113 Lithuania #4 46 ICA Gruppen CMD 141210 2 Strong profit and sales development Net sales EBIT1) & margin 1 400 40 4,0% MEUR MEUR +3.5% 35 3,5% 1 200 +2.9% +3.3% -6.4% 30 3,0% +6.8% 1 000 25 2,5% 20 2,0% 800 15 1,5% 600 10 1,0% 400 5 0,5% 0 0,0% 200 -5 -0,5% 0 -10 -1,0% 2009 2010 2011 2012 2013 2013 2014 2009 2010 2011 2012 2013 2013 2014 Jan-Sep Jan-Sep 1)EBIT & margin excluding non-recurring items ICA Gruppen CMD 141210 3 Strong sales growth in 2014 Rimi Baltic Group ICA Gruppen CMD 141210 4 Inflation is down to EU levels… Total inflation Inflation rate: food and alcoholic beverages % change y/y % change y/y 6 25 5 20 4 15 3 10 2 5 1 0 0 -1 -5 2011 2012 2012 2013 2014 2011 2012 2012 2013 2014 Estonia Latvia Lithuania Source: Nielsen ICA Gruppen CMD 141210 5 ..and GDP growth is stronger than EU average (% at constant prices) 12 9,9 10 9,3 8,3 7,6 6,7 6,9 8 6,5 6,6 5,9 5,7 5,9 5,7 5,2 5,2 6 4,8 5 4,8 5,1 4,4 4,4 4,6 3,9 4,1 3,8 3,8 3,6 3,6 3,4 3,5 3,7 3,5 3,6 3,3 3,1 3 3,1 4 2,8 2,8 2,5 2,2 2,1 2,2 2,2 1,3 2 0,9 0,8 1 0,7 0,3 0 -0,9 -2 -1,4 -4 -3 -4 -6 -6,2 -8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2* 2010 2011 2012 2013 2014 Estonia Latvia Lithuania * First
    [Show full text]
  • Retail of Food Products in the Baltic States
    RETAIL OF FOOD PRODUCTS IN THE BALTIC STATES FLANDERS INVESTMENT & TRADE MARKET SURVEY Retail of food products in the Baltic States December 2019 Flanders Investment & Trade Vilnius Retail of Food Products in the Baltic States| December 2019 1 Content Executive summary ................................................................................................................................. 3 Overview of the consumption market Baltic States ................................................................................ 4 Economic forecasts for the Baltic States ............................................................................................. 4 Lithuania .......................................................................................................................................... 4 Latvia ............................................................................................................................................... 5 Estonia ............................................................................................................................................. 6 Structure of distribution and market entry in the Baltic States ............................................................ 13 Structure ............................................................................................................................................ 13 Market entry ..................................................................................................................................... 14 Key
    [Show full text]
  • S Group and Responsibility 2014
    S Group ...................................................................................................................................................... 1 CEO's Review ........................................................................................................................................ 1 Review by the CEO – Unparalleled benefits and convenience from your own store ...................... 1 S Group in brief ..................................................................................................................................... 2 Regional co-operatives .................................................................................................................... 2 S Group’s business model .............................................................................................................. 3 Values, vision and strategy .............................................................................................................. 4 S Group's key figures in 2014 ......................................................................................................... 6 Business Operations ............................................................................................................................ 6 Supermarket trade ........................................................................................................................... 7 Case: Kotimaista product line ....................................................................................................... 10 Department
    [Show full text]
  • Tropical and Off-Season Fruits in Finland
    Tropical and off-season fruits in Finland Finnpartnership 2018 Image: Diet Doctor TROPICAL & OFF-SEASON FRUITS Finland is a relatively small European Union market for tropical and off-season fruits. However, Finnish consumers have a large interest in increasing variety of available products. Increased global mobility and internet make it possible for Finnish people to travel to the countries of origin of tropical fruits and learn about new products. Besides, the food retail market in Finland is highly concentrated. Almost all fresh fruit and vegetables are sold through the supermarkets, hypermarkets, and other stores that belong to one of the few retail chain groups. Finnish retail is vertically integrated with sourcing (wholesale) and distribution companies. In this fact-sheet, specifications for the fresh tropical and off-season fruits in the Finnish market are provided. Contents A. Product description 2 1. HS code and language for popular fruit imported into Finland (in Finnish) ........................................ 2 2. Fruit product description .............................................................................................................................. 3 2.1. Weight classes per portion 3 2.2. Labeling 4 2.3. Packing 4 B. Finnish fruit market 5 1. Fruits produced and cultivated in Finland ................................................................................................. 5 2. Wholesalers ...................................................................................................................................................
    [Show full text]
  • Retail Focus | the Baltics
    The international marketing magazine for fresh produce buyers in Europe By Steven Maxwell Friday 5th February 2010, 8:36 GMT Retail Focus | The Baltics Fruitnet.com takes an in-depth look at the rapid development of the retail market in Estonia, Latvia and Lithuania he three Baltic states that sit in the country, giving it a share of over 36 Figures provided by Planet Retail show T between Russia and Belarus to per cent in the Lithuanian grocery retail that total grocery retail sales in the country the east and Poland to the south market. A similar picture is repeated in dropped to €4.6m last year, from €5.4m in have experienced some two decades of nearby Latvia, where Maxima has 128 stores 2008. rapid development since their with a 10.6 per cent market share, and independence from the former Soviet Estonia where the retailer operates 74 A similar pattern could be seen, albeit to a Union, emerging with modern grocery outlets with a 16 per cent share of the lesser extent in the neighbouring Baltic retail sectors. The growth of the sectors in market. republics of Estonia and Latvia, where 2009 the Baltics has been clearly influenced by grocery retail sales totalled €2.3m and €2.8m the countries’ cultural ties, and But, while Lithuania has by far the most respectively, from €2.6m and €3.4m a year geographical vicinity, to Scandinavia, developed economy in the region, it has before. although Lithuanian retail group Maxima been no less affected by the global The affects of the downturn could be has established itself as the market leader economic recession.
    [Show full text]
  • Nielsen Press Release Template
    Press Release Grocery Shop Directory 2015 CONTACTS: Sanna Kotakorpi, Market Leader E-mail: [email protected] Tel. +358 9 4300 3239, +358 50 363 1068 INTENSE PRICE COMPETITION IN FINNISH GROCERY TRADE IN 2015 Year 2015 can be characterized as one of intense price competition within the grocery trade in Finland. Grocery sales declined for the first time since 1995 when Finland joined the European Union and the grocery prices dropped considerably. The value sales developed by -0.7% versus previous year, and the grocery sales amounted to EUR 16.6 billion. The information is based on Nielsen's annual Grocery Shop Directory. The drop in prices generated some small positive development in the sales volume which has for long been developing poorly. The sales volume increased by 0.4% versus 2014 whereas the volume development of the three previous years was practically non-existent, very close to zero. Even so, the volume development continues to lag significantly behind the average volume growth of the Finnish grocery market in the 21st century which has been on average 1.4% a year. The price competition attracted more shoppers to big stores and hypermarkets returned to growth trajectory after the small drop of the previous year. By contrast, the grocery sales of small stores under 400 sqm sank to their all-time low market share in the 38 years of the history of the Grocery Shop Directory; they represented 20% of the Finnish grocery sales. This was partly influenced by store closures; 102 stores below 400 sqm were closed in 2015.
    [Show full text]
  • S Group and Responsibility 2016 Owned by You – S Group and Responsibility 2016
    Owned by you – S GROUP AND RESPONSIBILITY 2016 OWNED BY YOU – S GROUP AND RESPONSIBILITY 2016 2 CONTENTS Contents ...............................................................................................................................................................................5 From the management .......................................................................................................................................................5 Benefits and convenience for co-op members’ daily life..................................................................................................5 Let’s make Finland the Best Place to Live .......................................................................................................................6 S Group in brief ..................................................................................................................................................................7 Business areas .................................................................................................................................................................11 Supermarket trade .......................................................................................................................................................11 Department stores and speciality stores .......................................................................................................................13 Service station store and fuel sales ...............................................................................................................................15
    [Show full text]