Sweden: Sales of organics increase by 11 %

The organic sector in Sweden is developing very well. Sales of organics increased by 11 % from 2009 to 2010, and the first numbers available for 2011 are very encouraging. According to the latest data from the independent marketing organisation Ekoweb, the share of organics in the entire food market in Sweden was 3.1 % in 2010. The organisation will soon be publishing the third edition of its Ekoweb.nu magazine, which is distributed to all farmers and companies working in the farm sector in Sweden. Alcoholic beverages in organic quality are increasingly in demand in Sweden and the state-run sales outlets, Systembolaget, have decided therefore to expand their organic offer. Systembolaget increased their sales by over 40 % in the first half of 2011. (Bild: Expert advice at Systembolaget)

The organic sector in Sweden grew by 11 % to 8 billion SEK (897 million euros) in 2010, up from 7.2 billion SEK (787 million euros) in 2009. The share of organic products in the total food market was 3.1 % in the same year. Since food prices remained unchanged, the organic sector expanded its share of the total food market, according to Cecilia Ryegård, the editor of the Ekoweb website. The marketing organisation Ekoweb launched a unique project by publishing the ecological magazine Ekoweb.nu, which was distributed in 83,000 copies and was sent out to every Swedish farmer and company in the farming business. The third edition of the magazine will be published on 9 November 2011. Ekoweb has already sold almost all the advertising space in the coming edition of the magazine, which shows the high level of interest among Swedish farmers in sustainable organic agriculture. (Bild: Cecilia at BioFAch, showing Ekoweb's magazine)


Swedish farmers can look toward to a bright future with increasing sales, achieved mainly by the following big players:
 

Coop  with a turnover of 1.9 billion SEK in 2010 (+ 10 % on 2009)

Ica 1.7 billion SEK (+ 7 %)

Systembolaget: Sales of organic products increased by 41 %

Public catering like schools, kindergartens, hospitals: 1 billion SEK (+ 35 %)

Hotels/restaurants: 0.7 billion SEK (+ 13 %)

Bergendahls: 0.3 billion SEK.
 

The remaining sales came from specialised stores, farm shops, farmers markets and similar channels, and were worth 0.9 billion SEK. Ekoweb forecasts that organic sales in 2011 will continue to rise by 10 to 12 %. The initial data for January to March 2011 are already available and are very encouraging: at the food retailer and wholesaler Axfood, sales increased by 9 % over this period. Alcoholic beverages are also developing successfully in reaction to Systembolaget’s decision to support organics. In the first half of 2011, their sales increased by 42.3 %.
 

Systembolaget is the only authorized store system for selling alcohol in Sweden. It was launched to minimize alcohol-related problems by selling alcohol in a responsible way without a profit motive. Systembolaget has a nationwide retail network of 417 stores and over 500 agents serving smaller communities. Their staff are experts in food and drink and provide a high standard of service for their customers.

Systembolagent's product range is actually one of the most comprehensive in the world, with about 2,300 items like beer, wine and spirits and an alcohol-free range. Products are sourced from about 40 countries. Their suppliers also stock a further 8,500 items that can be ordered from any store. Systembolaget is offering an increased percentage of organic products as a choice for the environment, and due to increasing customer demand. 120 organic products were offered in 2010, and today a range of 199 organic products is available in their stores. A futher 386 organic products are available for delivery within a few days. Wine makes up around 80 % of the turnover of all organic products.
 

So far, there are not many specialised stores or organic supermarkets selling organic products in Sweden and the conventional retail business accounts for 80 % of organic sales. Hermans Ekohandel is still the most recent organic supermarket in Sweden (see our earlier report). The company has recently changed its name to Eat! Ekoaffären. The first organic supermarket in the whole of Sweden (Ekostore) opened in Göteborg in March 2007 (see our earlier report), and in April of the same year the vegan and vegetarian organic supermarket Astrid och Aporna (Astrid and the Apes) in Malmö was also launched. 
 

Saltå Kvarn was launched in 1964 and has produced according to organic guidelines ever since. The company bakes bread in their own two bakeries and also has a production in their own mill. All of the products are certified organic (KRAV) and some of them are also Demeter certified. Approximately 75 full-time employees work for Saltå Kvarn. (Picture: some of the company's private brand products)

The company already opened their first shop at the production site in 1970, which has been successfully in operation since that time. Their second store followed in Stockholm in 2010.  This is a unique project in Sweden, since it is not common for producers in Sweden to sell via their own stores. With this move, the company aims to get even closer to their customers, also with the help of  tastings, cooking classes, and baking courses that are organised in the stores. The company takes the launch of further stores in both Stockholm and other major cities in the country into consideration. 
 

All of the approximately 200 products sold are organic. Much of the space in the stores is filled with the many new organic products the mill has produced in recent years, as well as with their bread and baking products. A range of about 15 unwrapped fresh loaves of bread is delivered straight from the bakery in Järna seven days a week. (Picture: a view on the product range in one of the stores)

About 60 % of the range comes from Sweden, like flour milled from Swedish grain (wheat, spelt, rye, barley and oats), fresh bread, crisp bread and honey. Besides these, the company also imports products which are sold through the stores, like dried fruits and nuts from Turkey, Demerara sugar from Brazil, pasta, rice, olive oil and tomato products from Italy and fruit juices from Germany. 40 % of turnover comes from the imported range of products, with dried fruits from Turkey being among the most popular (see picture to the left). Fresh bread from the bakeries accounts for 30 % of turnover.

Besides selling their products through their own store concept, the products are also available at ICA, Axfood and Coop in Sweden and a number of wholesale companies. They export to Denmark, Norway, Finland and Iceland. 
 

Cajsa Warg is a store concept that mainly specialises in natural and organic food. They already opened their first store in the south of Stockholm in 1996. The store has a sales area of 220 m², as well as an events and cooking area, an area for production, storage capacities, and offices and employee facilities. The second opening followed in 2010. Located in the west of Stockholm, the new store has a sales area of 320 m2 as well as the same facilities as their first store. Currently, 48 people are working for Cajsa Warg.

5,000 products are available on a yearly basis, of which about 20 – 25 % are certified organic. All the beef, pork and chicken comes from Sweden, and Swedish bread, milk, and butter are sold as well. The organic range consists of fruit and vegetables, dry goods, preserves, fish, meat, soy products, chilled and frozen products, supplements, baby food, pet food, food for people on a diet with special requirements, beverages, and detergents. Fresh produce in particular is selling well.