An increasing number of consumers in Denmark and the rest of the world prioritise organic products and animal welfare when they shop for groceries. This trend is reflected in Friland’s financial statements for the first half of the 2021/22 financial year, with sales of organic products driving the performance improvement. Organic pork and beef are the main drivers of the increased sales in Friland.
“We continue to record solid demand for our organic products and products supporting animal welfare standards – both in the domestic market and in our export markets, where we hold a strong position in several key markets. We are constantly on the lookout for new markets and business partners with a view to developing Friland’s concepts going forward because that is how we can maintain high and stable settlement prices to our suppliers,” says Claus Hein, CEO of Friland.
Friland reported revenue of DKK 549 million in the first six months of the 2021/22 financial year despite facing lockdown challenges in the markets for its concepts. However, Friland to some extent managed to compensate for the lack of sales by exporting more organic beef and pork.
Despite challenges and rising costs, the Friland CEO is confident that Friland will be able to maintain and, in time, increase sales of both organic meat and meat supporting animal welfare standards.
“We know the stores are battling for consumers, so we do what we can to ensure Friland offers an attractive product range. We also know that consumers want food produced in Denmark and are focused on good animal welfare. In addition, an increasing number of Danish consumers prefer organic products,” says Claus Hein, who also says that Friland is pursuing its strategic plan of increasing the number of animals for slaughter in the period until 2026.
Jais Valeur, Group CEO of Danish Crown, is also satisfied with the sales reported by Danish Crown’s organic subsidiary.
“We are impressed that Friland continues to grow its sales. It is paramount for us to increase the value of our products, and in this regard Friland is a cornerstone of organic products and high animal welfare standards, which we know are in strong demand among consumers. As a group, we will be looking into how we can jointly improve operations both in Friland and Danish Crown even further, and Claus Hein is in charge of these activities,” says Jais Valeur.
With its ‘Pioneering better food together’ strategy, Friland has defined an ambition to lift sales by between 25 and 40 % in the period to 2026, while also pursuing a strategic goal of increasing settlement prices to its suppliers over time. Strategic partnerships is one of the ways in which to achieve this.