Food Union Improves Delivery Services

Ice cream and dairy producer and distributor Food Union announced it will focus on the growth potential in e-commerce and enhancing nation-wide door-step-delivery services in Denmark and Norway. Food Union has two door-step-delivery companies in the Nordic region – Hjem Is and Den Norske Isbilen in Denmark and Norway respectively – that have invested in door-step-delivery technology improvements and expansions in e-commerce. These investments have led to an increase in sales, job growth and have helped reach more consumers than ever during the pandemic’s shutdowns.

Food Union is currently the leading ice cream maker in the Baltics and Denmark and holds strong market positions in Norway, Romania, Russia, and Belarus. Food Union Group’s shareholders include its founder and global head Andrey Beskhmelnitskiy, the Hong Kong-based investment company Meridian Capital Limited, and one of Asia’s largest private capital firms PAG.

During the first 9 months of 2020, Hjem Is, in Denmark, showed a significant 42% increase in customers served in comparison to the year 2019. Food Union improved its stop accuracy by 4.3%, and only increased their trips performed by 2%. In Norway Den Norske Isbilen showed a 30% increase in customers served, a 6.7% increase in stop accuracy, and a 5% increase in trips driven in comparison to 2019.

“We expanded and improved our door-step-delivery services to be closer to the customer and to create a more intuitive consumer experience. We expanded our door-step-delivery routes and optimized our stop accuracy and consumer interaction platforms to ensure we reached consumers when they wanted to purchase our products. We also reviewed our product offering and mix to bring consumers the highest quality product,” Normunds Staņēvičs, CEO of Food Union Europe said. “In order for all innovations in technologies and product portfolio to come together, we invested a great number of resources to educate and build up a strong sales team operating nation-wide that could connect with our consumers on a daily basis. Consumer behavior trends show that Nordic markets reflect global trends where consumers continue to change their buying habits from offline to online. We believe more brands and companies will continue to follow this shift to e-commerce. Many of our consumers are utilizing our online shops and delivery services for the first time, so we want to make sure consumers have a remarkable buying experience. We will continue to create faster and more flexible delivery solutions.”

With the world spending more time at home and with the risk of Covid-induced lockdowns, Food Union is actively investing in agile market environments with strong e-commerce potential. Food Union invested in a modern truck tracking system and planning software that evaluated and recalculated existing routes, analyzed consumer behavior, and adapted routes in order to reach more customers. Additionally, Food Union constructed a new freezer warehouse in Norway, updated their car fleets in Denmark and Norway, and continued improvements to online platforms which help more customers reach their “ice cream shops on wheels.”

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