Sweden: Organic sales increased by 18 %

In Sweden, the sales figures for organics are still increasing significantly. In 2009, organic sales gained 18 % in retail, restaurants, schools and hospitals. This was revealed in a market survey that was presented at a recent seminar by the Swedish independent marketing organisation and website Ekoweb. The share of organics in total food sales in Sweden was 3.1 % (+ 0.4 % compared with 2008). 80 % of organic food sales took place in conventional retail, that is dominated by the three big chains Coop, Ica and Axfood. Swedish consumers are continuing to buy organics despite the crisis, and we see fairly even development over all the categories. Some categories like dairy products could have gained even more, but there has been a shortage of organic milk throughout the year, says Cecilia Ryegård, who is responsible for the market report. She is the editor of the Ekoweb website.

Dairy products account for more than a third of total organic sales, and milk with 1.5 % fat has a share of 80 % of all organic dairy sales. This product also has the highest organic share - almost 10 % of the table milk with 1.5 % fat sold in Sweden is organic. The value of organic sales has increased by over 100 million euros to 700 million euros, with each Swedish consumer spending 61 euros on organic food in the retail business in 2009. More than a half of organic consumption in Sweden came from imported food. The organic share financed by the state – for example, schools and hospitals - is nearly 10 %, and the goal is 25 % by the end of 2010. Ekoweb’s forecast for 2010 is that organic sales will continue rising by 8 % to 12 % and that the Swedish organic market will exceed one billion euros in 2013. Consumer interest will continue to grow. According to Ms Ryegård (picture), a shortage of products is still a problem, especially in the organic milk sector, and this will prevent the organic dairy sector expanding by more than 10 % in 2010.
 

Hermans Ekohandel (picture) that opened one and a half years ago, it is the most recent organic supermarket in Sweden (see our former report). The first organic supermarket in the whole of Sweden (Ekostore) opened in Göteborg in March 2007, and in April of the same year the vegan and vegetarian organic supermarket Astrid och Aporna (Astrid and the Apes) opened in Malmö (see our earlier reports). So far, no new openings have been reported. There are several smaller health food stores, however, as well as restaurants and cafés which offer a range of organic products.
 

Biova operates as a wholesaler and importer. The company receives its products from Grell Naturkost in Kaltenkirchen, a town in Northern Germany. The whole assortment of Grell Naturkost, except frozen food, is available for the Swedish market. The range shipped to Sweden consists of about 2,200 articles and can be regarded as a full range, with bakery products, dairy products, vegetarian fresh products like tofu, fruit and vegetables, and meat from Bioverde, as well as non-food items like toothbrushes and nappies. The company decided to supply only the specialist health food trade in order to support this type of retail. About 30 stores all over Sweden receive Biova's products once or twice a week. Delivery time is 24 to 48 hours. Also, restaurants and producers receive goods from Biova.
 

Customers regard the availability of fresh, high quality items, especially natural products which cannot be produced in Sweden, as very important.  So root vegetables play a relatively minor role. Tropical fruits, as well as apples from Germany, are in great demand. Cheese is also important, especially mozzarella, which is now supplied with a Scandinavian label. Also, Vivani chocolate is very popular. According to Klaus Fossgreen from  Biova, it is important to keep on supplying the specialised retail trade to support it and to confirm the role of Biova as a reliable supplier with an ever-increasing range of products. New products are to be added to the company's range, like household detergents from Sodasan. In the past year alone, Biova has become a regular supplier for four more stores. The company gladly assists new stores during their start-up period with valuable advice. Biova is also considering the launch of a private label brand for the specialised retail trade.
 

One of the major manufacturers ist Oatly. The company was founded 15 years ago, just in time for Sweden’s entry into the European Union. This has enabled the company to reach a large market. It produces a range of oat drinks and Oatly Organic (Oat Drink, Vanilla, Chocolate, Drink Plus, and Oatly Cuisine Organic, which can be used for cooking to replace cream). A non-organic range of products is sold to Scandinavian supermarkets and to the UK, and the company also offers an organic range, accounting for about 50 % of its total turnover. In the last five years, the company’s organic products have achieved a healthy growth rate, and in the past two years the growth rate for their conventional products has increased massively. (Photo: Oats are one of the major agricultural products in Sweden) 
 

Oatly AB, whose headquarters are located in Landskrona, focuses on research and development, and its R & D operations have strong links with Lund University. About 95 % of production takes place in Landskrona, with the rest in Trensum and at Sia Glass, where a small amount of pancake mix and some ice-cream, both for the Swedish market, are manufactured. Oatly AB currently employs 45 staff. The company's turnover for 2009 was 18 million euros, Mr Bengt Anker told Organic-Market.Info. Estimates indicate that an annual growth of more than 30 % is possible over the next few years. The Swedish market is currently responsible for around 60 % of the company's total turnover.
 

Some of its products are also available abroad. As mentioned above, there is a conventional range of products available for the market in the UK. In other countries, the company's organic products are mainly sold in health food stores. Its important export countries are all located in Europe, although a small volume of exports is shipped to Hong Kong, Singapore and Taiwan. (Photo: Vegan dessert made of oat milk)
 

The company is planning to enter new markets in the future. Oatly will stay with oats as the raw material, even though customers would like the company to produce other drinks made of soy and rice, for example. The conditions for growing oats in central Sweden are excellent, and oats are one of the country’s most important cereals. Thus Oatly has specialists who know precisely which types of oats are to be grown and where to get the highest quality possible. 

Green n Lean is a Swedish company producing and selling organic vegetarian products since 2005. Currently the range consists of falafel bites, carrot bites, broccoli rolls, beetroot bites and gourmet burgers as alternatives to meat or fish. All ingredients are organically grown: spelt wheat (dinkel), naked oats and yellow peas. Various seasonings create a wide variety of tastes. All raw materials are sourced in Sweden, except sea salt and peppers. Products are also processed and packaged using Swedish sources. They contain no soya or lactose, and they are egg-free too. The products are not breaded - they are simply quickly pre-fried in palm seed oil, so that they stay raw on the inside, and are frozen immediately. Products are shipped and stored frozen and consumers need only to heat them to the desired temperature. Green n Lean products are slow carbohydrates (low GI), rich in fibres.
 

What makes these products so unique is the processing, according to Curt Hermelin from Green n Lean. The company uses germinated seed for their products, because un-germinated seeds and grains contain “anti-nutrients" such as enzyme inhibitors and phytic acid, which prevent proper digestion. The result is poor absorption of nutrients and incomplete digestion of proteins, which can irritate the intestines, often resulting in inflammation and allergic reactions. When seeds germinate, the changes are profound. They undergo a complete metamorphosis, creating an entirely new bio-available food source. Phytic acid and enzyme inhibitors are reduced, resulting in increased bio-availability. Enzymes can increase by as much as 800 %, resulting in increased bio-availability and nutrient absorption. Co-factors and co-enzymes are created to absorb and utilize the essential fatty acids such as Omega 3 more effectively. Vitamins and antioxidants are increased by as much as 1000 %. The ratio of soluble to insoluble fibres is also increased.
 

These products have evolved during more than twelve years of intensive product analysis and development. The idea of launching this type of product came from Pierre Hanell (picture), whose children suffered from food intolerances. After switching their diets, the children were free of their symptoms after only a few weeks. In 2005, the company officially introduced their products to the market, and they were first served in public institutions like schools. In 2008, the first sales took place to the Coop supermarket chain, as well as to many health food stores, restaurants and canteens. Also, some of the products are exported to Denmark. The company is currently negotiating with a company in South Africa for distribution of their products there and also for export to Australia and New Zealand. Great Britain will soon be able to enjoy the products as well, and the company is looking for distribution partners in other European countries. In addition, they are planning to expand the range this year. Ready meals will be added, plus a range of frozen soups. 
 

The Swedish company Sjölunda Gård has achieved great success. It was named after the farm Sjölunda (Gård is Swedish for farm), where Erika Hillergren and her partner Charlotte André started their organic business in 2008, after turning the stables into offices and a warehouse. They offer a selection of confectionery, with a range that currently consists of six products – liquorice, wine gums (two sorts), jelly babies, a cookie bar and a gift box containing raspberry flavour organic jelly hearts. As Erika Hillergren told Organic-Market.Info, she is completely committed to organics. The decision to produce confectionery was taken because the company found there was a need for a healthier alternative to conventional confectionery, calling it a ”green gap” that should be filled. Erika also regards supporting organic farmers as very important. (Photo: products from Sjölunda Gård)
 

The company started to offer their products in September 2008 and was able to withstand the recession. An important factor in this is price – while a bag of similar conventional confectionery is sold for about 16 or 17 krona (about 1.70 euros), the ”organic version” is available for about 25 krona (about 2.60 euros). With this low premium, the company was able to enter a large supermarket chain immediately and offer their products in 750 stores. Sjölunda Gård's customers are retailers – all three large supermarket chains carry their products, as well as health food stores, some cafés and even an airline. So far, production has taken place in Germany and in the Netherlands, since in Sweden no facility could be found that was organically certified. They are planning to add further products in the future, and these too will be sold in large supermarkets. She and her partner are looking for more products, for example at Biofach. Further goals are stocking vending machines with their confectionery products and exporting to other Nordic countries. (Picture: Erika Hillergren on the right, with her business partner Charlotte André).