GMO is a troublesome issue to Atria Finland

Atria Finland has started blogging (in Finnish). The blog of course should be followed by all interested.  The first posting is from May, and it is written by Mika Ala-Fossi, EVP Atria Finland.  He talks about GMO.  He says that raw materials used by the company are GMO free.  However, he admits that 20% of contract farmers’ pigs get feed which contains modified soy.  Ala-Fossi’s message comes absolutely clear: genetically modified feed is okay.

It is obvious that Ala-Fossi’s attitude angers skeptical consumers whose number is growing steadily.  Atria’s hardest rivals, HKScan and Snellman, offer GMO free alternatives.  Atria Finland just doesn’t mind.

Atria Scandinavia - precious brands

When Atria Group in 2007 bought the company Sardus AB, it was not generally considered to be a particularly good deal.  However, the Group itself saw that the €124 million acquisition was a success:  they were buying precious brands and a bridgehead to Denmark.

Okay, today there’s nothing new in Denmark, but the same old 3-Stjernet.  However, it is in a good shape as are most of those precious Swedish brands with a long history, like Lönneberga, Arboga, Onsala, and Pastejköket, which all came with Sardus acquisition.  Not to forget Falbygdens Ost which truly is a good brand but was years for sale and now at last it will be sold, Arla is the likely buyer. Lätta Måltider was of course not a good product line but it's just history.

Currently, when Atria Scandinavia’s other main brands, like Sibylla and Ridderheims are looking for growth in Russia, those above-mentioned home market brands are increasingly important due to Russia’s bans.

So, Atria Scandinavia’s brands are fine but there is a marked threat, however.  Avoiding carbohydrates is already a permanent phenomenon and bread consumption is a long-term downward trend.  That’s why sandwich toppings like cold cuts and pates are problematic as the company’s core category.

We will look at Atria again later but on Friday, October 10th, we are going to look at HKScan’s businesses.  Russian melancholy is suitable for all situations.

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HKScan’s focus is on profitable growth - really?

It’s quite odd that the company, which has just sold its most profitable and rapidly growing unit (Poland), says in its interim report that the company will concentrate even more on profitable growth.

Hannu Kottonen CEO HKScan, tells this in the company’s Q2 Interim Report:

The strategic review completed in June highlighted the need to fine-tune the strategic must-win battles and to increase our focus on profitable growth in the coming years.

Okay, let's wait and see what it might mean. I have already speculated that HKScan will expand through acquisitions in Lithuania.

We will follow the Group in all of its market areas. Finnish market, however, is right now the most interesting. The company has a significant product launch in the autumn, namely GMO-free rapeseed pork meat products. I have been thinking that they would be game-changer. HKScan Finland has significantly lost market share to the largest competitor, but now a good campaign could change the situation in many consumer groups and especially in the important away-from-home business unit.

Of course, the fear is that the campaign is similar to Scan’s campaign in UK. Meatball likes evidently have not gone spot-on.  Although fast-food and fitness go well together, at least they rhyme quite nicely.

Now there is a Danish leader in Rose Poultry, truly positive news. But what does it mean that large companies together launched the "Danish Kylling" brand.  One should have thought that the Danes never even think of eating foreign meat. 

The situation may be severe.  Probably a lot of cheap meat is flowing to all HKScan's market areas. What will happen to the Group's renewed Flodins brand which is committed to using only meat from the company's own market area.

We will discuss HKScan later but on Friday, September 26^th, we are going to look at Atria’s businesses.  HKScan might increase its presence in the Baltics. Here is one memorable departure to Estonia.

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.