Kronan

STOCKING ICELAND’S SHELVES WITH ACCESSIBLE, ETHICAL, AFFORDABLE PRODUCE

KRÓNAN

2 | EME Outlook issue 32

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Putting the Green in

GROCERS Iceland’s leading discount supermarket has established itself as an exemplary industry figurehead, stocking its shelves with progressive products and grocery goodness Writer: Jonathan Dyble | Project Manager: Josh Hyland

T

he retail sphere has been swept by the storm that is the growing commercial phenomenon of consumer consciousness in recent years.

Be it the rise of veganism or the global war on single use plastics, consumers aided by social media have helped bring crucial health, social and environmental issues to the forefront of the minds of multinationals.

L.E.K.’s latest Consumer Health Claims report provides the evidence.

Having surveyed 1,600 people it found that buyers now want to know more than whether a product is low-calorie or high in fibre. Instead, consumers are advocating that products should convey specific attributes relative to not only health, but equally wellness, ethics and the environment.

Resultantly, many businesses are having to adapt operationally and culturally in order to meet these changing demands. Yet others, such as Icelandic budget supermarket Krónan, are thriving in this increasingly mindful environment.

“Much like other discount stores, we are competing on prices,” explains Gréta María Grétarsdóttir, the company’s CEO. “What truly sets us apart, however, is the emphasis we place on social responsibility and public health.

“We have been at the forefront of decreasing food waste and at the same time have changed our store layout to focus on healthier products, replacing the candy and sweets that you’d typically find at cash registers with snacking fruit and strategically positioning water and diet drinks ahead of those with added sugars.

“Consumers of the future will be much more demanding; we’re preparing to provide them with all the information and products they may require.”

This uniquely progressive approach has enabled Krónan to excel in the two decades since its inception, now established as a major market challenger having played an important role in lowering grocery prices and raising social awareness in the national food retail sphere.

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KRÓNAN TAKING SUSTAINABLE STRIDES Being fundamentally a responsibility-driven company does come with its challenges, however, Grétarsdóttir herself citing Iceland’s relatively remote location as a consistent yet unavoidable hurdle.

CEO BACKGROUND

GRÉTA MARÍA GRÉTARSDÓTTIR How did you become interested in the supermarket sector?

“I have always had passion for making systems perform better. I studied engineering at university and my first job after graduation was in quality management.

From there I transitioned into the financial industry before joining the retail sector as a Chief Financial Officer.

“When the opportunity to join Krónan arose, I found myself quickly excelling in an environment where there is always room for improvement.

The industry suits me well – decisions are made constantly that aim to optimise and improve business.”

Gréta María Grétarsdóttir, CEO

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“We are very proud of the Icelandic products that we offer and know that the carbon footprint of each of our domestic goods is lower than that of those that we import,” she explains.

“We have good relationships with local producers and partner with small and innovative businesses for this very reason.

“At the same time, however, when you’re operating in a country with a population of about 360,000, it is not feasible or even possible to produce many of the products that we are used to seeing in grocery stores.”

In order to overcome this, the company maintains similarly close relationships with a number of international vendors from both Europe and the United States, ensuring that its customers have a wide selection of products to choose from.

Further, the company has developed a close understanding with its transport partners who take heed of Krónan’s responsible ethos, values and business model.

“We ensure that the cargo ship containers we use arrange our imported produce in such a way that the fresh products are always unloaded first, in turn taking precedence when it comes to reaching the warehouse,” Grétarsdóttir states.

Reduced food waste is one such outcome of this emphasis – a key area that the firm is seeking to address across the board, heavily reducing the price of damaged products or those past their best before date rather than simply discarding them.

“Despite our best efforts, however, finding the right balance between food and packaging waste remains a challenge,” Grétarsdóttir adds.

“There are packaging solutions that make food last longer and when it comes to importing these goods, the product’s lifetime matters. Therefore, the line between the two is not always clear, but it’s something that we’re working to address as part of our investment programme.”

Nathan & Olsen “Our vision is still fundamentally the same as our founders: to broaden the horizon and change the landscape of the Icelandic marketplace,” says Nathan & Olsen’s Lísa Björk Óskarsdóttir.

“We specialise in import and distribution of international convenience brands, connecting producers from across the Atlantic and Icelandic population.” Óskarsdóttir specially mentions Krónan and CEO Gréta María Grétarsdóttir as an example of a fruitful collaboration where “both companies inherently understand the needs of the market and their customers and have both the means and ambition to excel in serving them”.

T +354 530 8400 www.nathan.is

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Skyr

Arna Icelandic skyr is produced in the West Fjords of Iceland. Skyr is an Icelandic cultured dairy product and has been a part of Icelandic cuisine for centuries. Arna skyr is high in protein, fat free and like all of our product, lactose free.

www.arna.is

Building Brands In Iceland

Nathan & Olsen specializes in import and distribution of convenience goods in Iceland. In 1912 the aim of our founders was not only to bring quality international brands to our shores, but to broaden the horizon and change the landscape of the Icelandic marketplace.

This vision is still the energy that powers our company today and guides us in making the future of our local and global community better.

Nathan & Olsen ReykjavĂ­k, Iceland +354 530 8400 nathan.is

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KRÓNAN

CORPORATE GOVERNANCE

A RESPONSIBLE REMIT Krónan is a consumer-focused, ethical, responsible supermarket brand offering high quality yet affordable fresh produce and associated products to the Icelandic population, stocking over 8,000 different items.

Some of Kronan’s differentiating factors include: • A diverse range of vegan and free from products.

• An extensive, often locally sourced produce range that is placed at the front of each of its stores.

• An emphasis on product freshness, including a daily restocked bread and pastry section.

• The selling of products past their best before date or with damaged packaging at heavily reduced prices to stem waste.

• Providing every child with a piece of free fresh fruit during shopping.

• The introduction of self-service checkouts.

• A series of Kr.- stores that act as smaller, community versions of Krónan’s supermarkets, serving towns and villages across Iceland.

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MAINTAINING MOMENTUM It is this latter point that is a major focus for the company at the moment.

While the aforementioned efforts geared towards promoting healthy eating and reducing food waste constitute part of the firm’s spending strategy, it is also working extensively on incorporating game-changing technologies into its operations.

Grétarsdóttir reveals: “We have started a journey to becoming a lot more data driven, implementing a product information management system and a new ERP system to support this vision.

“We want our frontline people, who make the day-to-day decisions, to have meaningful data and the insights it can provide. It will provide them with the means of becoming more proactive, as well as ensuring that the right information is readily available to our customers.”

Empowering its employees is a running theme across these investments

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THE TASTIEST

POPCORN

IN THE WORLD

Stjornu have been making popcorn and potato snack for over 30 years.

It is the leading brand in Iceland

Idnmark ehf. Gjótuhraun 5, 220 Hafnarfjorður T 00354 5652555 /00354 8976450 E snakk@snakk.is

at present, Krónan currently working to introduce effective mobile training and communications platforms, providing its staff with everything they might need in the palms of their hands.

“We are grateful for our staff,” Grétarsdóttir adds. “We are fortunate that many of our store managers and key people have been with us for a long time, and we’re proud to be the first workplace of many young people, helping to kickstart careers.”

From supporting its staff to meeting the evolving demands of its custom-

ers, Krónan’s progressive attitudes will continue to drive the business forwards for years to come.

Having successfully bolstered its market share in recent years, the firm is now looking to expand its footprint and open new stores, the CEO considering each new outlet as a crucial milestone in achieving the wider goal of becoming a consolidated national supermarket of preference.

“We want to be the first choice for customers that care about their health and the environment, while at the

www.snakk.is

same time promoting shopping at fair prices,” Grétarsdóttir reveals.

“Alongside expansion, we’ll continue to strive to service our customers better with the implementation of new technical solutions such as more self-service checkouts. Likewise, we’re tracking other trends such as the rise of online grocery shopping, although we’re not yet clear on how drastically this will change in store shopping in Iceland moving forward.

“One thing that is for sure is that we have to adapt quickly to change.

The only thing we know about the future is that it will not be as we think it will be.”

KRÓNAN Tel: +354 585 7000 Kronan@kronan.is www.kronan.is

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KRÓNAN Skarfagarðar 2, 104 Reykjavík , Iceland.

Tel: +354 585 7000 Kronan@kronan.is www.kronan.is PRODUCED BY EME OUTLOOK MAGAZINE