Dalsspira criticize unhealthy pricing strategy

Dalsspira dairy reduced its sales by 25 percent during the first quarter. Among others CEO blames the pricing strategy in the stores.

Dalsspira dairy is listed at Spotlight and are therefore obliged to report their financial situation on a monthly and quarterly base. Recent financial report shows that sales was SEK 5.2 million during the first quarter of 2022, which is a decrease of 25 percent compared with the corresponding period last year. The operating profit deteriorated to SEK -2.9 million (-1.2). The numbers are referred in Food-supply.se.

– After visiting many of our customers, it has become clear that there is a great inequality in the pricing strategy for consumers, newly appointed CEO Mikael Olsson writes in his first quarter report and points out that local producers’ goods are subject to higher mark-ups for consumers in the stores.

– An increase in an already highly priced product reduces sales. In addition, we have significantly fewer products to spread our cost increases on than producers who have the world as a market. At the store level, small producers get stuck when the large food chains push the price to their consumers. However, the consequence risks becoming fewer local producers and an increased dependence on a few large national or multinational giants, he writes.

Apart from this Dalsspire has hope for the future, and the dairy highlights two positive affairs since the end of the first quarter. On 5 April the company received approximately SEK 900,000 from option maturity after the end of the period. And during the month of May, Dalsspira began delivering the new flavored Grill cheeses that were developed during the winter. The cheeses are sold at Ica stores around Sweden via store package agreements, at Coop in Bohuslän / Dalsland and Coop Gothenburg and at selected local Citygross stores.

Read the quarterly report HERE