. Last Wednesday, the Norwegian Competition Authority published a report. Concerning the conditions of purchase of food products by individual concerns. It clearly shows that the Kiwi group has much more favorable purchasing conditions from brands such as Coca Cola, Ringnes and Orkla. According to the report, the prices offered by the above brands to the Kiwi group are 15% lower. Lower than in other networks.
The advantage of Kiwi and Mena - unfavorable for consumers
The fact that the Kiwi and Mena concerns have much better conditions for purchasing food products for them. This is not good news for consumers. These concerns, thanks to the fact that they buy goods at significantly lower prices than other leading grocery chains in Norway, earn on them nearly 15% more than their competitors. Experts suggest that the Norgesgruppen concern, which includes, inter alia, the Kiwi and Meny chain uses its position in the market to earn more. There are also voices about unfair competition.
The advantage of Kiwi and Mena - everything is legal!
Unfortunately, smaller grocery chains that complain about the overwhelming advantage in the price difference, which are offered, among others, Meny and Kiwi, their hands are tied. Nowhere is it said that it is illegal to offer a given company individual purchase conditions. The problem is that such action has a negative impact on Norgesgruppen's competitors. They have no possibility of lowering the retail price for their customers. If they did, their companies would earn little or almost no money on the products sold. Using its advantage over the competition by Norgesgruppen is fully legal, but it is also a huge obstacle for other companies that have been blocked in this way and are not able to attract new customers in any way. What's more. The attractive prices of the chain of stores, which belong to Norgesgruppen, not only attract regular customers, but also effectively attract new ones.
Be sure to read! Norway with a large state fund - report!
Source of information: https://www.aftenposten.no/
