The government’s plans for the stores own cheap brand of to regulate the proceed – lidl’s new boss: Sounds a bit strange idea at the time

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Shop your own cheap signs of both anger and love.

Consumers ‘ view, they are often nice low. In the food industry, in turn, blame the trade unfair copying.

the most well-Known trade their own products, namely private-label brands in Finland are probably kesko’s Pirkka products, the S-group of Rainbow-brand and lidl’s Nordic dairy -milk products.

Now, the government’s plans to cheaper brands in order to limit twitched forward. The matter goes to the ministry of agriculture and forestry working group is due to meet for the first time on Friday.

the Aim is to improve the Finnish farmers and food companies. Trade station has been criticized for too strong: own brands competing in the copy products to domestic food companies. The store also has an advantage over their products, pricing and placement on store shelves.

the planned restrictions are not smiling lidl’s new Finnish-ceo Nicholas Pennanen. lidl’s business relies heavily on their own brands. The company’s products, 75% have their own brands, i.e. considerably more than the S-group and Kesko. But reverting Pennanen views and lidl’s future plans soon.

What control measures are currently known? The purpose is not to ban the trade of their own characters completely or affect the consumer prices, promises to agriculture and forestry, the minister of Jari Alder (kesk.) special assistant to Satu Haapaniemi .

One possible way is to tackle it, how to store brand copy brand products.

Lidl would be screwed if signs restricting

Back to lidl in the. In finland, operating in the grocery of the largest own brand range is just that. That’s why lidl’s new ceo Nicholas Pennanen is concerned about the government’s plans.

that Sounds a bit strange idea, says Pennanen.

the Possible restrictions on the final effects is Pennanen according to the difficult to assess, when nothing concrete has so far not been proposed.

– If the store owner marks should be restrictions on or changes in, of course it would affect us in our business.

Pennanen, according to their own terms is good that Lidl can actually determine the quality level. In addition, the price is often more affordable than other branded products.

Those customers come to us to buy, their own signs. We trust them, and own brands we are able to bring quality-to-price advantage to the customer, says Pennanen.

the trade to be criticized too much from a position of strength the majority of the Lidl bottle waters have their own brands.Mikko On / Yle

the likes of their customers or not, Antti Rinne (sd.) the government wants a more fair position of Finnish food producers. Special assistant at haapaniemi, according to the trade’s own brands limiting is intended to improve the Finnish food industry and the domestic producers ‘ bargaining position relative to trade.

– the Background is that the agricultural and food industry profitability has been structurally weak since the trade negotiating position is so strong, Haapaniemi says.

on the other Hand, is so that Finnish food manufacturers do not have a unified front, as some companies manufacture both their own brand of products that the contract manufacturer of the products to stores ‘ own brands. There are also companies, whose strategy is to focus solely on production, i.e. be a contract manufacturer for example, Playing or Domestic-note.

president and Ceo Pennanen assure Lidl have a good negotiating partner and the company have received a lot of good feedback on contract manufacturer from. Lidl has contract manufacturers in Finland.

Trade stumped – the situation stands

the Slope, the government promised in the government programme to intervene in a cheap marks and trade unfair negotiating position.

When the government program was announced in June, trading their own signs on the recording raised more questions than it answers. The posting goes like this:

Curbing the grocery of the superior bargaining position of legislative measures, including private-label products.

Work shops own brands in order to limit it is only the beginning of the ministry of agriculture and forestry, and no measures have yet been finalized.

At the moment cheap brand of regulating is connected to the EU unfair practices in the food chain in regulating UTP-directive. The directive has been adopted in the EU and now in its measures, are exported to the Finnish legislation.

ministry of agriculture and forestry working group met for the first time on Friday and march should be ready for presentation in the food market law reform.

the special assistant haapaniemi, according to food market reform after the look again, do I need to trade your own characters to further restrict.

in finland, the private label share is even by european standards quite small, about 25% of the grocery retail sector. The biggest foothold they have in Spain (42%), the Uk (42%) and Germany (36%), told consumer research firm Nielsen, the EU report (go to another service).

Lidl plans to open 5-10 new stores per year lidl Finland has more than 180 stores and 5 500 employees. It is Finland’s third largest grocery 9.6% market share. In the picture the seller Eve Repo. Stock.Pekka Tynell / Yle

Lidl arrived on the Finnish market in 2002. The initial strategy was to open stores in smaller localities. Your own plot and your own property.

Now lidl’s direction is changed. Today, stores will be opened mainly kaupunkein and also existing real estate. The goal is to open 5-10 new stores per year.

– there is still Much potential, for example, the metropolitan area could fit dozens of new Lidl-stores, says Pennanen.

home delivery to Lidl hasn’t left, because it is not considered a profitable activity.

Pennanen has made nearly their entire career Lidl

the 34-year-old Nicholas Pennanen began Lidl Finland in the lead in October after a long-term ceo Lauri Sipponen left the job.

Also Pennasella has a decade of history Lidl-group, because he has been in various positions in Finland, Germany and Sweden in 2009. His last job was in Finland management team operational leader.

Pennanen has grown up and studied in Germany. He was 7 years old when the family moved to Southern Germany.

the Previous ceo Lauri Sipponen thanks was to shake off the cheap market reputation and make lidl for a viable competitor to the S-group and Kesko. Where Pennanen wants to be remembered?

I don’t have the need to be remembered for any particular thing. The most important thing is that Lidl are doing as a team very well and we are a responsible operator. Growth is built, says Pennanen.

Read more:

How to use the Pirkka and Rainbow products? Trade in the field wonder whether the government intends to intervene in the familiar of a cheap brand for sale

Lidl Finland’s ceo change – Lauri Sipponen is leaving the company

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