ICA merchants dream of copying Danish eco-success after an inspiration trip to Copenhagen

Although organic sales in Denmark have been under pressure in recent years, the Danish grocery market still remains one of the first places European shopkeepers and chains turn their attention to when seeking new inspiration to boost their organic sales.

It offers advantages for both guests and hosts, because when foreign grocery chains go on the hunt for new organic products and concepts on Danish store shelves, it is both a shortcut to increasing guests' organic sales and a good opportunity to boost Denmark's export of both know-how and organic goods, according to experiences from the Organic Denmark Association.

Most recently, a group of southern Swedish shopkeepers from ICA chain's Malmborgs group participated in an inspiration trip to Copenhagen, where they took a guided tour of SuperBrugsen, Meny, Føtex, and Alma. Along the way, they were introduced to some of the partnerships that are part of the explanation for Denmark's leading position in organic products.

This includes, among others, Meny chain's shop-in-shop solutions with fruits and vegetables from the organic meal box company Aarstiderne. Partnerships between Denmark's two largest organic farms and three nationwide grocery chains, which have developed their own organic series, were other suggestions on how Swedish chains can expand their assortment with more organic variants:

• The organic Tjele Gods collaborates with store chains Bilka and Føtex, which sell milk, butter, cheese, root vegetables, as well as grain and bread products from the Jutland estate.

• In the discount chain Rema 1000, customers can choose between 25-30 products from the organic Gram Slot within dairy, flour, beer, cold cuts, vegetables, and various potato products, among others.

According to the Organic Denmark Association, which planned the inspiration day together with its sister organization Organic Sweden, close collaborations between food producers/brands and chains help build strong relationships with customers. This also applies to Coop's long-standing cooperation with Thise Dairy.

Tobias Torhell, responsible for fruit and vegetables at ICA Kvantum Malmborgs Tuna in Lund, particularly noted the greater variety in Danish assortments:

"For us, it is very interesting to see how Danish stores not only have one organic variant in each product group but also have products in different qualities and prices, so that even organic customers have more choices," Tobias Torhell told Organic Now and explained that ICA's stores typically only carry one organic variant in each product group.

Organic is more than festive food

The inspiration day started with a visit to the Swedish ambassador's residence in Copenhagen, where Organic Sweden and KRAV, Sweden's most important labeling scheme for organic foods, explained to the Swedish delegation of 30 people why organic plays a central role in the transformation of the food system, and why it is important for Swedish chains to continue converting to organic.

Emma Rung, CEO of KRAV, emphasized that the Swedish market is particularly challenged, as Sweden is one of the few countries where organic sales have never really taken off after COVID-19 and the recent geopolitical crises, which instead have strengthened Swedish consumers' perception of the KRAV label as a more exclusive product.

"We have about 8,000 KRAV-labeled products, but there is a tendency for customers to only buy KRAV products when they have guests of honor, so we need to learn from Danes how to make our products accessible to everyone," said Emma Rung.

Before the Swedish guests were bused around to selected stores, they received an overview of the current status of the Danish organic market and the strategies that have secured Denmark's position as one of the world's organic front-runners for many years.

"Thises skyr variants in Coop are a fantastic example of how a brand can lead within the category of organic dairy products. Such collaborations are at the very core of why Denmark is one of the world's leading organic nations," explains Dennis Hvam, international marketing manager, in a press release about the Swedish visit.

During the meeting at the embassy, he also described Denmark as a pure discount country.

»This means that we don't have as many fancy food stores as you do in Sweden. But in Denmark, many discount chains use organic products to position themselves. This attracts price-conscious customers, and the discount sector accounts for over half of organic daily sales," said Dennis Hvam about why organic has become mainstream in Denmark, where chains try to live up to the motto: »Everyone should be able to afford organic."

Shopkeeper Ola Hollerup, who runs an ICA Kvantum at Clemenstorget in Lund, offered part of the explanation for the negative development back home in Sweden. He pointed to an unfortunate pairing, where both the organic assortment in Sweden and the share of organic products have declined since 2017, when major nationwide organic campaigns in Sweden were scaled back.

In recent years, according to him, chains have prioritized climate and local ingredients over organic products, but he senses that interest in the values behind organic is currently growing in Swedish media and organizations.

"As independent shopkeepers, we are quite free to introduce new organic products into our assortment, but our organic sales only grow in very small steps, and we definitely need a broader range. So, it was interesting for us to hear about the strategies and collaborations behind the development of organic sales in a country with a much higher organic share than ours," Ola Hollerup told Organic Now during the inspiration trip.

The southern Swedish ICA stores receive many products from the Swedish Skånemejerier, which, according to Ola Hollerup, has significantly reduced its organic assortment.

Dennis Hvam now aims to establish a partnership with the Skåne ICA stores, which have a close cultural connection to Denmark.

»The idea is that, based on our dialogue and what shopkeepers have experienced together with Organic Sweden, we will go to Sweden and help them further develop their organic assortment," says Dennis Hvam.

As the demand for more products in Swedish stores grows, he hopes that the interest will spread throughout ICA, which could open opportunities to increase Danish exports to Sweden, which has long been Denmark's second most important export market for organic products.

Great potential in the Danish model

Former director of the Organic Denmark Association, Paul Holmbeck, now advises political leaders, companies, and NGOs worldwide on transforming markets toward more organic, and he sees great potential in exporting Danish know-how.

"The most unique feature of Denmark's organic market development is the catalytic role of the Organic Denmark Association in creating partnerships with retail chains. This catalyst role exists in very few countries. There is enormous potential for co-branding between strong organic brands and retailers, and there is huge interest when I share Danish cases in other countries," says Paul Holmbeck.

Charlotte Bladh André, director of Organic Sweden, hopes that Danish experiences can help boost Swedish organic sales, and she believes that working with more value propositions on the shelves will be crucial if Swedish grocery chains are to take a bigger step up the organic ladder.

»We have worked with the Organic Denmark Association for many years. Inspired by the partnerships between brands and chains in Denmark, we now want to take further steps to make organic products grow again in Sweden," says Charlotte Bladh André, who is especially interested in how Swedish chains can make organic products everyday food for the broad population.

Back home in Lund, Ola Hollerup is ready to work on that goal:

»We are at a point where we need to keep influencing customers and telling them about the benefits of organic. We have to fight and keep talking about organic until it becomes the normal choice," he said to Organic Now before heading towards the Øresund Bridge.