Poorer purchasing power among Swedish households

This week, Arla Foods presented its half-year Report, including the Swedish results, which are challenged by low consumption and a weak Swedish krone.

Revenue for Arla Sweden was SEK 8.9 billion, approximately SEK 1.2 billion more than in the first half of last year. As in the rest of the group, the increase is almost exclusively due to higher prices for the grocery trade and in Foodservice.

At the same time, volume-driven revenue for Arla’s strategic brands in Sweden has fallen by an average of 10 percent because many households have bought fewer dairy products and switched to cheaper alternatives.

– Swedish consumption has fallen more than in other countries, Arla Sweden’s managing director Cecilia Kocken (photo) said at a press conference, according to the news media ATL.

Arla recently decided to lower the price towards stores in Sweden, but it is too early to assess the effect.

– The whole idea is of course to lower prices and make it possible for more people to buy Arla’s products, said Cecilia Kocken.

On another point, Sweden stands out in Arla’s half-yearly report, as milk production is increasing in Sweden, while it is unchanged in Denmark. But the weak Swedish krone has been a drain on the milk price, writes ATL and quotes Arla Foods CEO Peder Tuborgh:

– Above all, it has affected the price of milk. If the krone had not been so weak, we would have been able to pay 1 euro cent more for the milk, he said at the press conference.

Cecilia Kocken added that she first of all was very positive that production is increasing in Sweden.

Read more about Arla’s half-year result HERE