Norgesgruppen looks to boost Kiwi profitability

Norgesgruppen looks to boost Kiwi profitability

Norway-based retailer Norgesgruppen has taken a stake in Danish retailer Dagrofa in a bid to improve the efficiency of its operations in Denmark, CEO Per Roskifte told just-food this morning (24 January).

The agreement, reached with investment firm's KFI and Scandinavian Holdings, will see Norgesgruppen take Scandinavian Holdings' stake in the retailer. KFI and Norgesgruppen have also signed a deal regarding future ownership and cooperation in Dagrofa. Neither group will own more than a 50% stake in the company, while suppliers will also be given the opportunity to invest in the firm.

According to Roskifte, through the tie-up Norgesgruppen aims to reduce the operating costs of its retail chain in Denmark, Kiwi. This will be achieved by working with Dagrofa in supply chain, procurement and logistics.

"In Denmark we have a food chain called Kiwi. We will be working in a cooperative partnership with Dagora... One of our goals, our main one, is to make our exiting business more efficient. We have something to learn and something to cooperate about," Roskifte told just-food.

Earlier this month, Norgesgruppen entered into a similar agreement with ICA in Norway. The deal, which coordinates procurement and distribution, aims to lower operating costs in the market.