Finland’s K Group has announced that it now offers around 30 products in its ‘Thank The Producer’ range, including grain-based items, cheeses, vegetables, and meat-based products.
Initially, the retailer had introduced the initiative with ten products, to assist Finland’s drought-affected farmers.
The president of K Group's grocery trade division, Ari Akseli, said, "Many farmers are in great difficulty at present, and Finnish food production is in jeopardy. K Group’s 'Thank the Producer' initiative is a way to support Finnish farmers in a tangible way."
Premium Pricing
The prices of products sold under the ‘Thank The Producer’ range are higher than that of regular products. The retailer also pays a higher share to the producers of these goods.
Akseli said, "The 'Thank the Producer' operating model aims to increase appreciation of Finnish food and of those who produce it.
"Each of us can support Finnish food producers through our daily choices and can help ensure that Finnish food will continue to be available in the years to come," he added.
According to Akseli, in recent years, the sales of local products in Finland have increased by around 10% annually, indicating a strong demand for local produce.
He observed, "When it comes to local products, customers primarily value quality, taste and local production. Many customers are also willing to pay a little more for such products, making them more profitable for the producer."
Supporting Agriculture
The retailer has been actively supporting Finnish agriculture in many ways.
The group organises 'local food dates' for local producers and K-food retailers several times a year, to increase the amount of local purchasing.
Akseli stated, "In total, K-food stores annually sell €5 billion worth of Finnish food, and over 80% of all food products we sell are made in Finland.
"In addition, K-retailers across the country make a valuable contribution through their daily work with farmers and producers in their locality to ensure that local products are always available to consumers," he added.
In 2017, direct purchases by K-retailers from Finland’s provinces added up to €748.4 million, an increase of 24% on the previous year.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
