On Wednesday, the Riksbank is expected to lower interest rates. Something that would mean a great relief for consumers with loans. The food market is also expected to change. The farmer with a loan on his tractor gets a lower cost, and making the food in the factory is also not as costly. But unfortunately, it will not be visible in the grocery store.
Anders Torell which since November 2024 is TF. Unfortunately, the CEO of Food Giant Coop does not believe that prices for food will probably be lower, something he reveals in an interview with Svenska Dagbladet.
The food just gets more expensive and more expensive. Image source: Nora Lorek/TT Picture
According to Food price Calculation is Coop the most expensive lunch box – where an example bag costs for a month SEK 14,352. The competitor Willys is over SEK 1,200 cheaper.
When Pensioners’ National Organization Pro Recently released its report on Sweden’s most expensive and cheapest food bag, Coop together with ICA was at the top with the more expensive grocery bags.
In the Stockholm region, Ica Baronen on Odengatan was most expensive, while Willys in Haninge and Södermalm had the cheaper grocery bags. The cheapest was Maxi ICA Supermarket Haninge.
At the same time, Coop received top rating when Food price Compared the best customer clubs. As a member of Coop’s customer club, there were thousands of patches to serve.
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Therefore, Coop’s loss
Coop’s business has not flourished lately. “Brack loss,” wrote Today’s News Last year when they reported that Coop made a loss of over SEK 700 million in 2023. But there is an explanation – namely the big investments made by Coop.
-We have both built a new logistics center in Eskilstuna and made a heart transplant in the form of changing our entire IT system, explains Torell in Svenska Dagbladet, and also says that he believes that the investments will have a negative impact this year.
Coop’s CEO reveals why they are so expensive
In the interview, Anders Torell also says several reasons why food prices will be more expensive. It is about drought in Brazil that makes the coffee more expensive, rain disasters in Spain that destroyed entire harvests and bananas in Central America that became unusable when there has been large amounts of rain.
The huge rain disaster in Spain in 2024 required 200 lives, something that SVT Then reported. Image source: AP Photo/Emilio Morenatti/TT the image overwhelming in Valencia took many people’s lives and totally destroyed people’s homes. Image source: AP Photo/Emilio Morenatti/TT Picture
In the interview with Svenska Dagbladet Torell says that this is something that “affects much more than we think” when it comes to prices.
– Our job is to make sure to make our customers as happy as possible by holding on price increases. But also work strategically with a sustainability perspective, because over a longer horizon is not affected by climate crises that affect food prices, he tells Svenska Dagbladet.