Today, Nortura produces around 2,300 individual products. That figure should be reduced to about 1,000, writes the Nation.
The streamlining of the product range should allow for increased efficiency and less waste. Today, the 340 most popular products account for 80 percent of sales. At the opposite end of the popularity scale, 1,100 items generate only 1 percent of revenue.
– It goes without saying that we cannot continue with it. We also understand this with the grocery chains, says acting vice president Lisbeth Svendsen in a letter from Nortura to the farmers who own the cooperative company. In the same letter, sales and marketing director Harald Bjerknes explains the new venture.
– We must have good sales of volume products in order to take care of our owners’ raw material sales and ensure efficiency in production. Therefore, we must have more focus on volume and core products, instead of increasing the number of products.
The efficiency improvement will have an effect towards the end of the year.