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New agreement between Nortura and Orkla Foods Norge

Konsernsjef i Nortura, Arne Kristian Kolberg og adm. dir. i Orkla Foods Norge, Bente Brevik

Konsernsjef i Nortura, Arne Kristian Kolberg og adm. dir. i Orkla Foods Norge, Bente Brevik

On Monday, 30 September, Nortura and Orkla Foods Norge signed an important new agreement.

The agreement will apply until 2017 and it perpetuates Orkla's involvement in and support for agriculture in Norway.

The new agreement has an aggregate value of at least NOK 400 million, and entails that Orkla Foods Norge has undertaken a commitment to buy meat products made of beef, pork, mutton, chicken and turkey from Nortura. It also covers a significant share of egg products. Orkla Foods Norge will therefore further develop a significant customer relationship with Norwegian farmers.

The agreement was signed in connection with the entry into force of the official merger between Rieber & Søn and Stabburet on 1 October. It will give Orkla Foods Norge an important position in the Norwegian food market with leading brands such as Stabburet, Toro, Vossafår, Denja, Stabburet Leverpostei, Grandiosa and Idun.

Each year, Orkla Foods Norge spends about NOK 850 million on agricultural products, of which meat accounts for about NOK 450 million. Dairy products constitute the second largest group of raw materials, worth a total of NOK 275 million.

"We are, and we would like to continue to be, an important customer of Norwegian farmers since we know that Norwegian consumers want Norwegian raw materials because of their high quality. We are therefore pleased to have the opportunity to continue cooperating with Nortura, which represents Norwegian food in an exemplary manner", comments Bente Brevik, CEO of Orkla Foods Norge.

"For several years, Nortura has been one of Orkla's preferred vendors, owing not least to the high quality of its products. We are renewing the agreement, secure in the knowledge that the company has the ability to deliver high-quality products that comply with the high standards we must set", adds Brevik.

Under the agreement, Nortura will continue to be the main supplier of meat to Orkla Foods Norge, at the same time as Orkla Foods Norge has stated its intention to increase the volume of raw materials it buys from Nortura.

"Naturally, the agreement is based on the assumption that Nortura can offer predictable, competitive terms, generally speaking", Brevik points out.

"Orkla Foods Norge is a large-scale, important raw materials customer for Nortura, making this an important contract for us. It guarantees our owners a good market for their raw materials. The agreement with Orkla Foods Norge covers our entire range of raw materials from cattle to chicken, pork and eggs", observes Arne Kristian Kolberg, CEO of Nortura.

"We are pleased that a major raw materials player like Orkla Foods maintains such a strong focus on Norwegian agriculture and high-quality Norwegian food, and we are looking forward further and more comprehensive cooperation", concludes Kolberg.

For more information, contact:
Bjørn Brennskag, Communications Director, Orkla Foods Norge, +47 906 06 383 /
Eli Ytterdahl Tohje, Head of Communication, Nortura, +47 971 91 058/

Facts about the companies:

Nortura is one of the country's leading food enterprises and Norway's largest branded consumer goods companies in meat and egg products. The Group is privately owned by Norwegian farmers who also produce and supply raw materials. We produce food in more than 30 municipalities, and we source meat and eggs from farmers in all counties and municipalities all over Norway. Our brands are Gilde, Prior, Eldhus, Thulefjord and Terina. Nortura also engages in substantial production of so-called EMV products for the retail trade. With 5 500 man-years of labour and subsidiaries in Norway and abroad, Nortura had a turnover of NOK 19.2 billion in 2012 and earnings before tax of NOK 339 million.

Orkla Foods Norge
Orkla Foods Norge is the leading supplier of branded consumer foodstuffs on the Norwegian market. The company was established on 1 October 2013 following the merger between Rieber & Søn Norway and Stabburet. The company supplies attractive brands such as Stabburet, Toro, Denja, Idun, Norad, Vossafår, Vestlandslefsa, FUN, GØY and Grandiosa, BigOne and Nugatti. Orkla Foods Norge will have an annual turnover of roughly NOK 5 billion. The company is part of Orkla which has made significant progress towards becoming a pure play Nordic branded consumer goods company. Orkla's branded consumer goods operations had a turnover of roughly NOK 30 billion and 16 000 employees in 2012.