08.09.2011

High food prices prompt calls for more competition in Finland

Finnish consumers would benefit from the entry of foreign companies in the market for daily consumer goods.

Konttinen notes that the food and drinks industry in Finland is also concentrated in the hands of a few companies. Only in the fish and fish products market no single company has a market share of more than 20%. According to Konttinen, the profit margin in food retail has been falling in Western Europe and is currently 37-39% in Sweden and Denmark, compared to 52% in Finland. Food prices in Finland have not fallen since the country joined the EU.

Konttinen says that Suomen Lähikauppa and the German chain Lidl are too small to have an impact on the domination of the S-Group and K-Group. In fact, the grocery trade has become even more concentrated after Lidl’s arrival in Finland because the S-Group acquired the large Euromarkets from Suomen Lähikauppa.

Source: Nykypäivä, Taloussanomat