Coop Amba members and independent utility associations Fredensborg Brugsforening (FOB) and Føroya Keypssamtøka (FK) have teamed up to form a joint company with 50% ownership and a voting majority for Fredensborg Brugsforening.
The partnership will see Fredensborg Brugsforening investing an undisclosed amount in double-digit millions in the Faroese association, which has been facing financial challenges.
Fredensborg Brugsforening operates several independent SuperBrugsen and Brugsen stores in Denmark.
Føroya Keypssamtøka (FK) operates six supermarkets in the Faroe Islands and has a total turnover of around DKK 250 million.
'Same Core Values'
Jákup Mørkøre, chair of Føroya Cape Samtøka, stated, "FOB is based on the same core values as us, with membership and the idea of co-operatives, and culturally we have a lot in common as two co-operatives.
"By working together, we secure the necessary liquidity as well as retail expertise, sparring and management, which are crucial to achieving the goal of preparing FK for the future and making the stores an even more attractive place to shop for Faroese consumers."
The investment will help the company reach a competitive and sustainable level.
Føroya Keypssamtøka and Fredensborg Brugsforening purchase most of their goods from Coop Danmark.
Management Structure
Bo Kristensen, distributor in Fredensborg Brugsforening, will serve as chair of the board of the new company.
Elsewhere, Kristian Wolsing, who has been appointed temporary director of FK for the past year, will take up the role of director in the new venture.
Kristensen stated, "We are part of a close-knit Coop family, and as a family we stand together and help each other. Therefore, we on the board agree that we would like to throw ourselves into this investment, partly because our hearts beat for the consumer association movement, and we, therefore, want to ensure that there is also a member-owned grocery business in the Faroe Islands in the future.
"And because we are convinced that we can create significant growth and within the foreseeable future make the company profitable, while at the same time ensuring continued development and healthy investments at FOB."
