Please
look at this short interview in English, Juha Gröhn, CEO Atria Group
speaking. Indeed, he’s not an optimist
by nature. Despite
the gloomy CEO, the Group has tried to brighten the internal corporate image by
implementing a glamorous Atria Way of Work campaign. On their pages (in Finnish) the campaign designer says and apparently Mika Ala-Fossi, EVP Atria
Finland confirms that the campaign has been a success and all have had fun.
Atria Finland - The Interim Report
Q1-2014 finds one positive thing:
“Atria
consolidated its market position across all customer accounts compared to the
same period last year. Atria's total market share in retail trade was more than
27 per cent in terms of value.”
Good
thing is that Atria Finland has now practically consolidated its position as the market leader. Bad
thing is that profitability
has declined, apparently for a long time. Short term in mind it is evident, that during the
crucial Q2 and Q3 quarters price competition will be hard and it will specifically relate to seasonal products, that is, barbeque
products.
And new problems are ahead in the autumn. The main competitor will launch
GMO-free products. This will inevitably reduce Atria Finland’s market share in
the mid-range, and the highest-end products, which of course are most
profitable product categories.
There still another thing. Recently Atria Finland decided to make
changes to the criteria, according to which producer prices are
determined. It was broadly understood
that Atria encourages producers to reduce the living space per pig. Although apparently it was
not the goal, the damage was
already done.
Company’s Facebook pages' comments section filled with consumers’ angry
feedback. And equally importantly, current
producers’ conclusions
and reactions will become clear before
the end of the year, when the new pricing model will come into force.
Atria Scandinavia - The
Interim Report Q1-2014 gives one alarming piece of info:
“The
Swedish cold cuts market declined by about 5 per cent and the cooking sausages
market by some 2 per cent.”
Cold
cuts product group is one of Atria Scandinavia’s cornerstones. These products are used mainly as
sandwich toppings, and the use of bread is falling because low-carb (or let’s
say fairly low carb diet) is still going strong and reaches new and wider
consumer segments across the whole Group’s market area. Atria Group should
re-position this product group perhaps very soon.
Atria
Scandinavia has had
the advantage of inexpensive meat raw material, but this is by no means
reflected in the result. Why
is that?
Export
from Horsens’ plant in Denmark to China has now become possible. The company will not be able to
succeed in price competition. However, China's middle class is growing and
high-quality pork products are increasingly sought after.
Atria Russia - Not a word about the
newly launched product group, namely chilled convenience food. It's getting absolutely certain
that the launch has been a complete failure.
We will look at Atria again in late August but on Friday, May 23th, we are going to look at HKScan’s businesses. Problems, progress, profits, prosperity.
This is
Artoparto and here is my Disclaimer.
Please read it.
Disclaimer: All content provided on this site is for
entertainment purposes only. This site
does not provide any investment advice and content on this site should not be
construed as recommendation to buy or sell any financial instruments. Please consult a qualified financial adviser
before making any financial decision. I
make no representations as to the accuracy, completeness, suitability, or
validity, of any information on this site or found by following any link on
this site. I will not be liable for any
errors, omissions, or any losses, injuries, or damages arising from displaying
or using any content provided on this site.
I am not responsible for users' comments. I reserve the right to update or delete any
content on this site for any reason.
No comments:
Post a Comment