Despite the fact that the organic market was challenged by high inflation in 2022, the Dagrofa Group managed to increase sales of organic goods by seven per cent. compared to the previous year.
While the domestic retail trade as a whole experienced a decline in sales of organic food in 2022, Dagrofa could note an increase in sales of seven per cent, and the group states that it is sticking to its ambition of an overall annual growth in organic sales of 10 per cent. across foodservice and retail.
Dagrofa states this in a press release, where private label manager Steffen Winther attributes a large part of the credit for last year’s organic sales progress to the group’s private label series Grøn Balance. All foods in the series are organic, and while several consumers reduced their organic consumption in 2022, Dagrofa experienced a growing interest in Grøn Balance products, and according to Steffen Winther, this is not entirely accidental:
“In recent years, we have worked to improve and make the Grøn Balance brand visible, and the customers have also acknowledged this. Today, Grøn Balance’s turnover index is 2.2 per cent. higher than a year ago. Consumers feel that they are getting a really good organic and environmentally conscious product with sought-after values at a competitive price, and then of course they buy it again,” he says.
According to the Organic National Association’s market report, the Dagrofa group accounts for just over five per cent. of the Danish retail sales of organic food, and the sales progress lands as positive news in the Organic National Association, where Birgitte Jørgensen, market manager for retail, hopes that the positive development is an indication that the organic domestic market is improving.
“It is always positive when we see chains that take advantage of the opportunities to develop the organic market, and we are happy about our good cooperation with Dagrofa,” says Birgitte Jørgensen.
Focus on ecology and the environment
In addition to the work to make ecology visible and ensure a wide organic selection, a large part of the key to achieving Dagrofa’s CSR goals lies in Grøn Balance. Although the organic market is challenged by consumers’ reduced purchasing power, Dagrofa is experiencing a steady increase in sales of Grøn Balance products, and Jesper Gottschalk Bjerring, commercial director of Dagrofa’s Meny chain, explains that the market is currently pushing customers further towards the chains’ own brands rather than the branded goods.
“It has actually been an increasing trend over recent years. Grøn Balance represents many of the values that consumers demand and which we at Meny would like to accommodate and promote. That is why we are now making an extra effort to make Grøn Balance visible, which specifically focuses on ecology, the environment, health and high quality,” he says.
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