Atria Finland and Heinon Tukku - practical cooperation

Recently, Atria has reported on success in the Food Service segment, at least in terms of net sales. Now it seems that one reason for this success is revealed in company's Success Stories column.  According to it, a year ago, collaboration with a wholesaler Heinon Tukku was taken to a new level, from a customer to a partner.

 

“The key idea of the partnership agreement is that Atria will ensure the flexibility of the deliveries made by Heinon Tukku and the availability of goods” and “Heinon Tukku, in turn, will help Atria to reach restaurant-sector customers in greater Helsinki.”

Cooperation has expanded this autumn. The column tells, that the companies started a new type of service counter for the meat sector: 

“Heinon Tukku has previously provided whole fillets and carcass parts, but now we can also cut meat into desired pieces and steaks of a specific weight.”

What does it mean? Overall, it means that the biggest rival HKScan is challenged in its home ground.  Without a doubt, this simple step may have brought a significant increase in Atria Foodservice sales. Heinon Tukku is a major wholesaler, sales of more than EUR 200 million and its range covers all from food to tableware.  Pre-cut meat for its part further facilitates the everyday life of a pro kitchen.  All in one cargo.

But what about the other half of the agreement?  How does Atria ”ensure the flexibility of the deliveries made by Heinon Tukku”?  And what might it mean?  Well, I don’t know, but this cooperation surely will increase Atria's net sales and may be also profitable in the near future.  Especially demand for most valuable parts of the carcass will hopefully increase.  Moreover, one could think that for instance Ridderheims’ products could be included in the range of Heinon Tukku as well.

We will look at Atria again later but on Friday, January 2^nd we are going to look at HKScan’s businesses.  Slow food is slow food but fast food is fast food.

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A few remarks about HKScan’s poultry business

But at first shortly about meat export.  In a recent issue of Kauppapolitiikka, it’s Trade Policy, published by the ministry concerned, there is, under the title “Blue and white food tours” (in Finnish), an interesting article about HKScan and the main message is that reputation of cleanness and safeness boosts Finnish food export.  As an example of Finnish quality, Hanny Kottonen, CEO HKscan, mentions that in Japan, Finnish pork is served raw in local sushi.  This is something that even Sweden has failed to do, Kottonen notes.  By-products, those parts of carcass, which do not sell in Finland, are perhaps another key to success. Still one key, mentioned by Kottonen, is that HKScan should also export - in addition to raw meat - also consumer products with strong brands.  Now we can only hope that the new Flodins brand does the job. However, the article tells, export is not easy business, even close neighbors, like Russia and Norway, have proven to be challenging.  

And now shortly about poultry. Of all Group’s units only HKScan Denmark, is unprofitable.  For reason or another, this is now explicitly stated in a Danish newspaper. Chicken do not sell and prices are low.  Group’s problem child is the term used. It just came into my mind that Rose Poultry could be for sale.  After the fire, the factory has of course been renovated and it might interest possible buyers.  The Group after all, has invested heavily on poultry in Estonia and plans to invest in Finland, as already noted on this blog earlier. One additional fact is that Denmark is more vulnerable to avian influenza. Perhaps the group does not even think of selling Rose Poultry but I think that there’s some idea to go through this case more closely in the near future. 

Talking about chicken, the valuable Finnish brand ”Kariniemen”, is in fact not that valuable.  On the Finnish list of most prestigious brands, it holds rank number 121 of all 1043 examined brands.  Considering that “Kariniemen” is an old brand and its awareness is high, ranking outside top 100 is terribly bad.

Now Kariniemen is campaigning ethical farming.  Ordinary people, picked by the company, were allowed to videotape freely in a henhouse and make questions freely, company’s Youtube Channel tells.  Well, think about this: they were free to ask anything they wanted.  Superb! Okay, I don’t think that this kind of theatre has any positive impact.  Factory farming is factory farming and that’s it.  Personally I would have liked to see chicken catcher in operation and I would have liked to ask about tetracycline use.

We will discuss HKScan later but on Friday, December 19^th, we are going to look at Atria’s businesses. Chicken rocks!

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.