Scania reasserts itself in Swedish market
Nothing less than a fight for survival on the Swedish milk market between Arla and the second-largest processor in the country Skå,nemejerier (Scania Dairy) has seen Scania (400 million kg milk/year in 2010 against Arla’s 1895 m kg) re-establish itself as a significant contender.
While Scania’s 2010 turnover looks set to match the 2009 result of EUR338 m, the dairy is winning more farmers as suppliers. Milk deliveries were up 13% by the end of 2010 with another 15%, or 50 m kg, added at the beginning of 2011 when 57 new farmers signed up.
Scania is increasing its throughput by paying farmers more for milk than the opposition. By 2016 it aims to be paying 13% more per kg than today. Over the same period the dairy expects to double its turnover to the equivalent of EUR660 m.
Behind this is a campaign steered by CEO Bjorn Sederblad to first of all sharpen the dairy’s profile in Sweden. At the beginning of 2009, leading supermarkets were outlisting Scania products in favour of the number one dairy. Customer protest actions, based on consumer support for local milk producers, turned the tables quickly. Scania products were relisted in Sweden and the publicity even encouraged Danish outlets to start stocking Scania products. This victory was followed by a series of product launches: new gourmet butter, real vanilla yoghurt, Scandinavia’s first traceable drinking milk with farmer suppliers identified via Internet, a new biomilk label with its own dedicated dairy – and the world’s first probiotic fruit juices. Recognition of the Scania label in Sweden and Denmark is now at 97%.
