The Rema 1000 owner criticizes the Competition Authority, criticizes Norgesgruppen and emphasizes what is actually the reason for Norway’s high food prices.
REMA TOP: Ole Robert Reitan, co-owner and chairman of Reitan Retail. Photo: Siv DolmenPublished:
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Ole Robert Reitan is a guest in a brand new podcast episode with E24’s Sindre Heyerdahl.
There he is asked, among other things, whether he has faith in any of the government’s measures towards the grocery industry.
Reitan responds by advocating for the issue that has been the subject of the most debate within the industry over the past five years. It is to introduce rules that limit how good purchasing conditions Norgesgruppen, the largest player, can get.
– Norgesgruppen is the least efficient player in Norwegian grocery and can still compete on price with us, who are the most efficient, says Reitan.
He says it is because Norgesgruppen is “subsidised” by the suppliers.
– It is unhealthy. Because if it hadn’t been like that, we could have had lower prices in Rema 1000. That would have meant that Norgesgruppen had to have made its operations more efficient in order to be able to compete against us. And that had created lower prices in Norwegian groceries over time. 100 percent sure.
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Reitan about the flop: – It was painful. I actually got physically sick from it.
The differences have decreased
There are many who disagree with that description. The government scrapped a proposal last year after strong protests, including from the Norwegian Competition Authority. Industry Minister Jan Christian Vestre (Ap) has now launched a less intrusive variant.
Communications director Stein Rømmerud in the Norgesgruppen refers to the Norwegian Competition Authority when he comments on Reitan’s actions.
Communications Director Stein Rømmerud in the Norgesgruppen. Photo: Hanna Kristin Hjardar / E24
In a recent report on Norwegian consumer goods, the supervisory authority writes that it is not so black and white as that Norgesgruppen consistently has much better conditions than its competitors.
– It is legitimate that Reitan wants the best possible financial result, and his statement can only be interpreted as a ploy to get political help to strengthen his own bottom line. But he doesn’t know what the difference in the purchase prices is, and he shouldn’t know either, comments Rømmerud.
– The Norwegian Competition Authority states today that the differences in purchase prices have decreased significantly from 2017 to 2022, and they explain well in today’s report that it is not always the case that the largest player gets the lowest prices.
Excited for billion fee
Heyerdahl also asks Reitan about the Norwegian Competition Authority. Specifically, about the announced billion-dollar fines for Rema 1000, Coop and Norgesgruppen in the “bounty hunter case”.
It has been over three years since the notice came. A decision may be just around the corner. The question is whether the Norwegian Competition Authority concludes as it did last time, and approves about NOK 25 billion in fees to the three players.
Reitan does not hide that he is excited about the decision. At the same time, he criticizes the Norwegian Competition Authority’s conduct in the matter.
– The Competition Authority has known about everything to do with prize hunters all along. We have visited them hundreds of times and explained step by step how the agreement came about, why it came about and why it should be good for the competition.
Now you get the most important news from E24 on Whatsapp. Follow us herePOD GUEST: Ole Robert Reitan is in the last episode of the E24 podcast with Sindre Heyerdahl. Photo: Magne Antonsen
Reitan says they have never received guidance or any form of signal from the Norwegian Competition Authority that they did not like the bounty hunter agreement.
– Before that, a bill of several billion kroner came in the mail ten years later. It’s totally illogical in my mind. So it will be very interesting to see how they reason now.
A conclusion has been announced “at the beginning of 2024”. If the inspectorate has its way, the chains have said that the matter will be taken to court.
The Norwegian Competition Authority informs E24 that since the investigative case is still being worked on, they do not wish to comment on Reitan’s statements now.
I think the price hike is over
The podcast episode will be released on 1 February, a date which has traditionally led to major price adjustments in grocery stores.
However, Rema 1000 has made a big point recently out of their transition to ongoing negotiations, instead of purchasing prices changing only twice a year.
Exactly what will happen to the prices in the country’s Rema 1000 stores on Thursday, Reitan says he does not know. He’s not that connected. The worst seems to be behind us anyway, says the Trønder.
– I am absolutely certain that we will have lower price growth going forward than what we have experienced in the last two years. But I don’t think that the rise in prices is a bygone stage.
– Take the simple fact inside you
Vestre has launched a long list of measures to create better competition and thus lower prices.
Heyerdahl asks Reitan if he would like the politicians to at least mention import protection. That is, the package of tariffs that exist to protect Norwegian agriculture.
– Yes, but my goodness, how many times have I not done that and only got shut up and steered back?
THE PRICE TO PAY: Reitan misses that politicians dare to say that Norwegian agricultural policy creates higher food prices. Photo: Adrian Nielsen
Reitan mentions debates and conversations with a number of former agriculture ministers.
– I have spoken to everyone and said that “instead of shooting at the merchants every time we have to talk about food prices, can’t you accept the simple fact that it is primarily due to Norwegian agricultural policy”?
He emphasizes that he is not a critic of the scheme, quite the opposite.
– I am happy that we have people who live all over Norway. I think we should take care of our districts and have a good and aggressive district policy. If that means we have to have slightly higher food prices, then that is what we want. We show that in general election after general election.
Listen to the whole episode to find out what Reitan answers when Heyerdahl asks about the stock exchange plans, and what he thinks about the fact that he will have to pay more in wealth tax.
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2024-02-01 05:29:15
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