Swedish food retailer Axfood will make 90 employees at its Dagab wholesale unit redundant next year.

The job losses follow the loss of Axfood's contract to supply Swedish grocery chain Vivo Stockholm. The latter group has chosen to award BergendahlsGruppen its wholesale supply contract, as of January 2005.

Axfood's first-half profits after tax fell to SKr289m (US$39.3m) from SKr335m in the same period of last year, reported Dagens Industri.