The rising cost of imported food ingredients is behind a wave of consolidation within Norway’s bakery sector, with Orkla Foods-owned Bakers leading the charge.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Bakers CEO Einar Larsen said rising commodity costs is putting pressure on smaller bakeries to sell up. “There are too many small- and medium-sized bakeries,” he said. “The new reality of increasing costs on imported raw materials is making owners look for exit solutions.”
Bakers, which may sell its Singas bakery, plans to raise its stake in Molde Bakeri from 40% to 100% in May.
The consolidation could leave Norway with five to six large-sized bakeries controlling over 60% of the market, according to Pal Klausen, chairman of local firm Bakermester Klausen.
“There is no shortage of [acquisition] opportunities,” Klausen said. “We may see as many as 60 bakeries bought and sold in 2008.” Bakermester Klausen bought Baker Thon in December.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBakeries looking for new industrial owners include Gunders Bakeri. “Our future means we need to be part of a larger bakery group,” Gunders Bakeri CEO Steinar Nyborg said.
