Eat-drink
Ikea goes eco-friendly to drive growth in food sales
Michael La Cour, IKEA Food Business managing director, poses with the new u00e2u20acu02dcVeggie ballsu00e2u20acu2122 course or vegetarian balls during its official launch at an IKEA store in Brussels April 8, 2015. REUTERS/Francois Lenoir

STOCKHOLM, April 9 — Swedish furniture retailer Ikea said sales growth at its food business could accelerate in coming years, helped by a drive to meet customer demand for healthy and eco-friendly dishes.

Ikea Food Services, which runs the group’s in-store budget restaurants and Swedish food stores, in January reported an 8.6 per cent rise in sales in its 2013-14 fiscal year, to €1.7 billion (RM6.7 billion).

The division’s boss, Michael La Cour, said it could outstrip that sales growth in coming years as it catered better for customers who had become more conscious about the nutritional value and sourcing of their food in recent years.

“This massive shift in terms of how to serve and what people expect around food of course has an impact on how we want to do food going forward at Ikea,” he told Reuters yesterday.

“The food business will be a strong contributor to Ikea. We don’t think the 8.6 per cent is the ceiling.”


The IKEA ‘Veggie balls’ launched in Brussels.

The food business accounted for 5 per cent of sales in the fiscal year to August 2014 at Ikea Group, which owns Ikea Food Services and most of the Ikea stores worldwide. La Cour said he expected that proportion to be at least unchanged this year.

In a first step of its food drive, Ikea yesterday launched a vegan version of its signature Swedish meatballs with a carbon footprint 30 times less than that of the meat-based product. Within months, all seafood on sale will be certified as sustainably fished, La Cour added.

La Cour said the scandal over horse meat in 2013 — which saw Ikea withdraw its meatballs across most of Europe after a supplier found a batch that contained traces of horse meat — was a wake-up call for the food industry.

“The horse meat scandal, which we got entangled in due to lack of transparency in the supply chain, was absolutely an example of how demands on the food industry have to change,” added the Ikea veteran, who became food chief 18 months ago.

Besides making money on their own, Ikea banks on its restaurants, which average 2,000 square metres and last year had 600 million customers, to make visitors to its stores stay and shop longer. — Reuters

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