Lantmännen acquires Swedish Slaktarkorv meat brand

SWEDEN – Lantmännen’s meat business Scan Sverige has acquired Swedish charcuterie brand Slaktarkorv.

The company said the deal relates to ownership of the brand itself, extending an existing arrangement under which Scan Sverige has been responsible for Slaktarkorv’s processing and production.

According to Lantmännen, the purchase gives Scan Sverige scope to expand Swedish-based food production and to deepen its offer in sausages and charcuterie.

Scan Sverige managing director Lars Appelqvist described the transaction as another step in efforts to widen both the availability and assortment of Swedish meat and charcuterie in the market.

He added that Slaktarkorv has recorded firm growth over the past year in terms of revenue and volumes, and that the brand still has significant room for further development.

Slaktarkorv was created in 2013 by agricultural entrepreneurs Åsa Lillbro and Per Karlsson.

Lantmännen said the brand is now well established, with broad regional coverage and nationwide sales.

Its assortment is focused on products made using meat sourced from Sweden.

Karlsson said the founders are satisfied with Slaktarkorv’s progress from an initial idea to a recognised label stocked by all major retailers.

He also said they regard the sale to what he called Sweden’s leading meat and charcuterie group as a way for the brand to continue growing under new ownership.

Expansion in meat portfolio

The acquisition follows an earlier move this year in which Scan Sverige agreed to buy Swedish meat producer Lindvalls Chark to widen its business portfolio.

Farmer-owned cooperative Lantmännen has around 17,000 Swedish members and employs about 12,000 people in more than 20 countries.

Its consumer food brands include Kungsörnen, Scan and GoGreen.

For the last financial year, group turnover rose 4.2% to Skr68bn (US$7.3bn), operating income increased 22.6% to Skr2.87bn (US$308m) and net income climbed 32% to Skr2.06bn (about US$221m).

Lantmännen reports in four-month periods, and in the May to August interval net sales slipped 3.2% to Skr19.48bn (around US$2.09bn).

Operating income fell 53% to Skr655m (about US$70m), affected by some Skr340m (around US$36m) of restructuring costs linked to an ongoing savings plan.

Net income for the period dropped 35.8% to Skr439m (about US$47m).

Within the food division, which also includes Cerealia and Unibake, operating income reached Skr519m (around US$56m), up 3.8% year on year.

Net sales in the division edged down 1% to Skr10.2bn (about US$1.09bn).

Scan Sverige generated sales of Skr3.19bn (around US$342m), an 8% increase on the same four-month period a year earlier.

Lantmännen said in October that Scan Sverige is developing positively, having lifted both earnings and market share during the latest reporting window.

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