Axfood

Axfood is a Swedish wholesaler and grocery retailer which launched in 2000. The company is a subsidiary of Axel Johnson and was launched with the aim of providing high quality and sustainable products to its clients. Over 4 million customers purchase products from Axfood through various stores. 

Axfood supplies to around 1200 stores which involve 325 stores owned by the group. Furthermore, the firm’s products can be bought online. The firm has emerged as one of the market leaders in the industry in Sweden. 

The business employs 12772 employees and in 2022, achieved a turnover of €6.4 billion. Axfood is listed on the stock exchange since 1997 and in 2006, was listed on NASDAQ Stockholm’s Large Cap list. 

Axfood owns several companies which include:

Willys: a food retail chain with 200 stores in Sweden. The chain is known for its low prices. Willys also operate 50 smaller shops under another name, Willy Hemma. The company also runs an online shop.

Hemkop: a grocery chain with 187 stores out of which 70 are owned by the group. The firm launched its online shop in 2016. Among its products, one can find a variety of organic and vegetarian products.

Axfood Snabbgross: A wholesaler which supplies restaurants, cafes and other businesses in Sweden’s HoReCa sector. The company offers over 13000 references.

Mat.se:  An online shop offering grocery items. The firm is known for offering innovative options to customers and is constantly testing new concepts.

Middagsfrid: founded in 2007, the firm offers meal kits in the form of pre-packed grocery bags which are delivered to customers. Middagsfrid is a subsidiary of Mat.se

Eurocash: Eurocash consists of 8 stores and has is considered to be one of the largest food retailers on the Norwegian border.

Dagab: The logistics company which is responsible for managing the stocks and the logistics for Axfood.

Apohem: An online pharmacy founded in 2017 

Tempo: a chain of 134 grocery stores 

Urban Deli: Axfood is the major partner in Urban Deli, a chain of speciality stores which also operate a restaurant and an indoor market. There are currently 3 stores in Sweden. 

Handlar’n: a chain of of 224 mini-marts

Axfood has also developed several own brands including:

Garant: a brand of organic products which include milk, cheese, pasta and olive oils

Minstingen: a brand of baby care products which was launched in 2016

Eldorado: a range of grocery products including rice, olive oil and cereals.

Saklart:  a brand of household products and personal care items

Premier:  a brand of soft drinks 

Fixa: a brand of household products that includes various laundry and cleaning products

Axfood launches more than 300 new products under its private labels every year. 

Axfood has a code of conduct which clearly stipulates its requirements and regulations concerning employment rights and ethical behaviour . Suppliers wishing to work with the company have to abide by this code of conduct. At present, there are around 1500 suppliers who supply axfood with products based on the company’s criteria. 

Concerning the private labels, Axfood has devised a specific process on how products are developed. First, Axfood will set the criteria for quality based on taste, content, ingredients, forbidden ingredients and allowed ingredients. Once the criteria is defined, suppliers are invited to submit proposals along with samples. 

Axfood carries out tests on the samples and selects three to four suppliers. The firm can request changes to improve the products. Once this is done, further tests are carried out. This includes testing by a panel of 60 consumers.

Based on the results, Axfood will select the supplier which meets all the specifications and sign an agreement. The packaging is also designed Axfood’s requirements and the product is launched and distributed to Axfood and its different stores. 

Axfood manages several warehouses and around 600 000 cases are delivered each day. Axfood is now also operating a fully automated warehouse. The company’s vehicles are modern and Axfood has also announced that it would be introducing more fossil-free trucks to its fleet.