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.

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