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Norgesgruppen, which owns Kiwi and Meny, among others, has by far the largest market share in the grocery industry. The man at the top of the group is Johan Johannson, with an ownership stake close to 75 percent. In 2020, it is ranked as the third richest capital in Norway, something Nettavisen mentioned in September.
He has a fortune of just over NOK 44 billion, an increase of NOK 4 billion since 2019.
I have a billion dollar business
The billionaire’s fortune has not only been the fruit of hard work. Johannson’s father, Knut Hartig, and uncle Torbjørn each inherited half of the Joh group. Johannson AS by his father, and these in turn have passed on to the next generation. As Torbjørn is childless, all ownership passed to Johan Johannson and his sons, who now own more than 74 percent of Norgesgruppen.
Norgesgruppen is made up of the Meny, Kiwi, Joker, Spar and Nærbutikken supermarket chains, and a total market share of 44 percent in the grocery market, miles ahead of Rema 1000 and Coop.
At the same time, the group has an important real estate portfolio; The coffee distillery, the Mix kiosk chain and the Asko wholesaler. Through Joh. Johannson Eiendom has also invested in Johannson, among others, Alna Senter and Solon Eiendom.
I have never seen it
But even though Johannson is perhaps the most powerful man in the grocery industry, he maintains an unusually low media profile, especially compared to other top grocery profiles like Stein Erik Hagen and Odd and Ole Robert Reitan.
It is also not very visible in other contexts.
Bjørn Takle Friis, Coop’s director of communications, has worked in the grocery industry since 2008 and still enjoys seeing Johan Johannson.
– I have attended most meetings and conferences on Norwegian groceries, but I have not seen him live or talked to him, says Friis.
– In fact, I’m not sure it exists, he adds humorously.
Friis believes that the low profile he has chosen is closely related to the Norgesgruppen profile that the company wants to have.
– Norgesgruppen is a growing power factor in Norwegian supermarkets and consciously communicates through its individual chains to divert attention. Johan Johannson has made a fortune selling groceries, which is far from a good thing for customers who want the cheapest food possible, says Friis, adding:
– These are probably the main reasons why neither I nor so many others will have the pleasure of meeting Johan Johannson.
Inherited personality
Wholesale trade expert Odd Gisholt, on the other hand, has met Johannson a number of times and thinks he’s a nice guy. However, like Friis, he has a theory as to why he’s so media-shy.
– It is in a way an inherent modesty. You probably inherited it from your grandfather and father. Johan Johannson is part of the group’s management, but remains in the background and leaves the day-to-day operations to Rune Hollevik (CEO, journ.anm.), Says Gisholt.
This distinguishes Johan Johannson from, for example, Rema’s owner Odd Reitan, Gisholt believes.
– Odd Reitan is very good at it and leans forward, and likes to call himself a Colonial Major. Although Rema 1000 sells cheap products, the Reitan family lives in an elevated position, says Gisholt.
Neither the Johannson family nor Johan himself think so.
– Live quietly, calmly and modestly, he says.
The online newspaper has contacted Norgesgruppen, who reports that Johan Johannson does not want to comment on the case.
Inherited
Johan Johansson has been fortunate that his father inherited part of the company from his grandfather. His two aunts did not inherit much from his father. The online newspaper has previously spoken with one of Johan’s aunts, Liv Johansson, about this.
Her younger brother Torbjørn had previously said that it was a coincidence that the children in the family were taking over the family business, and that it was because the sisters wanted to do other things. That’s not true, according to Liv.
– It does not imply precision. My father said, “Women have nothing to do in business.” That message was clear. So what my brother says is not correct, he told Nettavisen.
She said she has been poorly financed as an adult, and especially when her son was young. Only when he was almost 70 did he inherit something: his parents’ home. It was supposed to be shared between Liv and her sister, but the sister died earlier.
SISTER: Liv Johansson is Johan Johansson’s aunt. Stock Photo Photo: Ole Eikeland (Nettavisen)
Big price cut
Kiwi has really been in the field and has been traded this year, because after the corona pandemic broke out in Norway, they have carried out four major price reduction campaigns. On October 19 they began the fourth, which is the largest in history, and will last until December 1.
– We cut the prices of more than 500 items by an average of 21 percent, Kristine Aakvaag Arvin, Kiwi communications manager, told Nettavisen.
HAD NOT MEET: Bjørn Takle Friis, communications director at Coop Norge, has not seen Johan Johannson, despite a long career in the industry. Photo: Nina Lorvik (Mediehuset Nettavisen)
Although both Extra and Rema said they are following up with their own price cuts, Coop came out and explained what consequences it could have for them.
– We will always follow the price, but it costs us more to give low prices than those that have better purchasing conditions. It goes far beyond our competitiveness when we have to use our “war box,” says Bjørn Takle Friis, Coop Norge communications director for Nettavisen.
Friis said he will go beyond his opportunities to establish new stores. Therefore, they run the risk of lagging a bit behind compared to Kiwi, which wants more funds to do other things to maintain competition, Friis believes.
Advantage over the competition
Kiwi and Norgesgruppen have had some bad weather this fall, after the Norwegian Competition Authority released a new report showing that Norgesgruppen has better purchasing conditions from several large suppliers than Rema and Extra.
In short, the survey shows that Norgesgruppen’s purchasing conditions also in 2018 and 2019 are better than Rema and Coop’s conditions, and that the differences are significant for some suppliers. Therefore, the differences calculated for 2017, presented in the 2019 report, were not a unique case, writes the Norwegian Competition Authority in the report.
Last year’s report showed that Norgesgruppen receives the same products from some suppliers 15 percent cheaper than Coop and Rema, and the Norwegian Competition Authority believes this could lead to higher prices.
The results of this year’s report show that Norgesgruppen still has an advantage over the other two players.
