Norgesgruppen and agri coops

NorgesGruppen sees a role for the agri coops

24.02.10 15:03
The chairman of NorgesGruppen, Knut Hartvig Johannson believes it is better to help making Gilde and Prior more effective than for the grocery chains to produce more private label products, writes Aftenposten. Johannson may be the most powerful man in the Norwegian grocery business. He is chairman of NorgesGruppen which controls 40 percent of the grocery stores in Norway.

The chairman argues that Norwegian agriculture has to become more effective and that NorgesGruppen will help out. – We have a functional division of labour today. And I can not believe that we have such a high opinion about ourselves that we can think that we can develop products like Orkla with its expertise, or the agricultural coops with their production businesses and marketing skills, says Johannson. Knut Hartvig Johannson makes the comment after Odd Reitan, of Rema 1000, said he wanted to produce more private labels to by-pass the ineffectiveness of the Norwegian agriculture. - We are so large than we can not make it without the help of the agricultural cooperatives, says the CEO of NorgesGruppen, Sverre Leiro. For chains like Rema 1000 it is easier to manage without doing business with the coops, because they are smaller. - My answer is no. We will not do that (follow the example of Rema 1000). I think we should have more respect the different roles in production, refining and the sale of groceries, says Johannson. Although NorgesGruppen all ready has a considerable range of private labels. - It was Odd Reitan that started this debate. Reitan knows whats best for him. It is a simple as that, says Johannson.

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