Norwegian supermarket chain MENY has announced plans to help local food suppliers during the coronavirus crisis, amid fears that many could go bankrupt.
Commenting on the retailer's plans, Meny CEO Vegard Kjuus said, “Norwegian local food producers are important for local workplaces, food culture and innovation in the grocery industry. Local food offerings have never been greater. Now we have to do everything we can to make sure they get through the COVID-19 crisis”.
Turnover halved
The grocery industry normally accounts for just under 50% of sales for local Norwegian food suppliers, but now, with the closure of most HoReCa outlets, it is the only channel available.
“We have talked to more than 50 of our local food producers," said Kjuus. "For many, they are facing a crisis with turnover drops of up to 60% or 70%. Hotels, restaurants and tourist attractions are closed and no one comes to visit farms."
The supermarket chain also announced plans to return 10% of sales income to these manufacturers.
MENY works with over 450 local food producers throughout the country, Kjuss added. Local producers represent important business activity locally and many have growth ambitions that will provide new jobs.
“With the COVID-19 crisis we see even more clearly how important it is to have your own food production," he said. "Food is more than taste. It is business development, cultural building and sustainable processing of raw materials."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Elizabeth Schroeder. Click subscribe to sign up to ESM: The European Supermarket Magazine
