Norwegian consumers spent a total of NOK 17.6 billion (€1.74 billion) overseas in the 12 month period from Q4 2018 to Q3 2019, a statistic that the CEO of food and drink industry body NHO Mat og Drikke, Petter Haas Brubakk, has described as "worrying".
Some 95% of this cross-border trade takes place in Sweden, recent data from Statistics Norway has found.
Growing Trade
Over the 12-month period, border trade grew by NOK 2.3 billion compared to the corresponding period the previous year.
"The government must recognise that the level of border trade is undermining and adversely affecting a number of political objectives," Brubakk commented, adding that those in power must ensure the "quick implementation" of measures that help reverse border trade.
According to NHO Mat og Drikke, public health policy, retailer competition and the state's income from taxation are all being affected by the growth in cross-border trade.
For example, Norwegian health authorities do not have a clear picture on the level of sugar and salt intake among consumers, it said, due to high numbers of confectionery and snacking products that are purchased across the border in Sweden.
"Neither the business community, the health authorities nor others have a good overview of what is traded in other countries, and especially in Sweden," said Brubakk.
Lost Revenue
According to findings from 2018, calculated by Nielsen Norway and Statistics Norway, the border trade accounts for approximately 9% of grocery sales in Norway.
Sales in cities close to the Swedish border, including Østfold, Oslo, Akershus, Hedmark and Trøndelag are particularly affected, according to NHO Mat og Drikke.
The group added that according to its recent quarterly Business Barometer, for the fourth quarter of 2019, more than a fifth (22%) of companies in the Norwegian food and beverage industry expect to lose sales to cross-border trade.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
