The Nordic agricultural giant Felleskjøpet Agri strengthens its ambitions in the Nordic pet market. Together with Granngården in Sweden, the company produces and sells some of the best-known pet food brands on the market. Felleskjøpet is now acquiring 100 per cent of the shares in Norway’s leading online store for pet owners, Dyrekassen AS.
Felleskjøpet’s aim is to become the leading player within the Nordic pet market, predominantly within the domestic markets in Norway and Sweden. In Norway, Felleskjøpet has around 100 stores spread throughout the country and it has the same number of stores in Sweden through its subsidiary Granngården. The proprietary pet food brands Appetitt and Labb are sold in both countries.
Unique combination of physical stores and e-commerce will increase the pace of growth
“We are the only player in the Nordic region involved throughout the entire value chain and we make locally produced and sustainable pet food. Our business activities extend from the Norwegian raw materials via our factory in Vaksdal to both consumers and professional customers. Our physical presence in Norway and Sweden ensures that we have a strong position and, through the use of the specialised e-commerce solutions developed by Dyrekassen.no, we are now focusing proactively on the entire Nordic region,” says Trond Fidje, Director of Retail at Felleskjøpet Agri.
The pet market, which in recent years has experienced a growth of 5 per cent year on year, is rapidly changing. There is now stronger competition between the players in the domestic markets and global e-commerce players are also developing their business activities in the Nordic region. Market growth in recent years has been driven predominantly by e-commerce.
“Felleskjøpet and Granngården are well equipped when it comes to physical trade. Well known brands and a large number of stores serve pet customers well. In order to win larger parts of the market and further strengthen our online position, we are now buying 100 per cent of the shares in Dyrekassen AS. Their e-commerce solutions, customer base and tailored online customer experience complements Felleskjøpet extremely well. The first step in this initiative will be to co-locate the parties’ warehouse activities and procurement portfolios across Norway and Sweden,” says Fidje.
Felleskjøpet has owned 34 per cent of Dyrekassen.no since 2019
Major growth ambitions
Dyrekassen.no will remain independent and will continue to build on the growth it has experienced in recent years. With leading brands and excellent customer experiences, it is a market leader for online sales of pet products in Norway. The expertise, product range and key employees of Dyrekassen.no will also be utilised as part of an expanded focus on e-commerce in Sweden via Granngården.
“We are very happy to become part of the Felleskjøpet Group and to be able to contribute to reinforcing our position within the Nordic pet segment. It is particularly exciting that we have managed to attract a strong, traditional Norwegian owner that can contribute both scale and industrial benefits in future efforts. Together with the talented people at both Felleskjøpet and Granngården, we are convinced that we have the best possible conditions to succeed in attaining a significant position within the Nordic region over the next few years,” says Roger Holthe Olsen, co-founder and CEO of Dyrekassen.no.
Felleskjøpet has an annual turnover of around NOK 650 million within the pet category. The ambition is to double the current turnover by 2025. Most of this growth will come from e-commerce through Dyrekassen, as well as Felleskjøpet and Granngården online stores. Dyrekassen has experienced substantial growth since its inception four years ago and is the market leader for e-commerce within the pet category, with a turnover of around NOK 60 million.
By Lindsay Beaton
Those in the supplements space are answering consumer calls for functionality, traceability, and simple education on what’s right for their pets.
By Lindsay Beaton
Healthy M&A activity as well as expanded production capacity investments helped pet food companies continue to grow in 2021.