K-Group intends to redefine the price-quality ratio of the Finnish food trade

KESKO CORPORATION PRESS RELEASE 10.02.2015 AT 11.30 1(2)

The K-Group has decided that the quality of Finnish people's food must not deteriorate because of the weakening of consumers' purchasing power. Prices shall be affordable, but the current price competition must not negatively affect the quality of Finnish food, or the vitality of food production and the food manufacturing industry.

"This is a both/and matter. Our duty is to offer Finnish customers both; both the right price and the right quality, coupled with freshness, domestic origin and diversity. Our intention is now to re-define the price-quality ratio for the Finnish dining tables," says Kesko's President and CEO Mikko Helander.

Last autumn, the K-Group asked over half a million Finns what they wanted food stores to offer and which products they would like to be lower priced. The survey showed that the wishes of Finnish consumers are not only related to the low prices of individual products. Food should be both more affordable and of higher quality than before. Based on the message from consumers, the K-Group lowered the prices of 400 products permanently.

The K-Group's 10 Euro Meal launch announced today is one way of showing that the Finnish consumers' meals can be suitable in both price and quality. Starting from tomorrow, the K-Group will offer high-quality, healthy meals, developed and tested by its experts, to feed a family of four at less than 10 euros.

This is only the K-Group's first step in the re-definition of the price-quality ratio of the Finnish food trade. During the current year, a number of other launches from across the K-Group will follow.

Responsible food trade

Competitive price is a prerequisite in the Finnish food trade. But in accordance with its values and as the world's most responsible food retail operator, it is the K-Group's duty to take care of wellbeing throughout the entire food chain.

"This too is a both/and situation: both the Finnish food producer and consumer must be taken into account. Our responsibility for food extends from the field to the kitchen, even in difficult times," says Helander.

In support of domestic and local production, the K-Group will organise six Lähiruokatreffit events this spring in different parts of Finland. Around 500 small enterprises will be invited to the events to present their products to K-retailers, who can freely select products valued by their local customers for sale at their stores.

Further information:
President and CEO Mikko Helander, Kesko Corporation, tel. +358 105 322 301
Jorma Rauhala, Senior Vice President, grocery trade, tel. +358 105 322 211

Kesko (www.kesko.fi) is one of the Global 100 Most Sustainable Corporations in the World. We are a retail specialist whose chains have about 2,000 stores in the Nordic and Baltic countries, Russia, and Belarus. Our stores offer quality to the daily lives of consumers.