On December 2nd, the numbers came in: Local food sales hit a new record in Norway at 13.55 billion NOK in 2025. The food service market – hotels, restaurants, and canteens – grew by 13.3 percent to 7.1 billion.
Same week: Price war on Christmas groceries in retail stores. Christmas porridge for under four kroner. Pork ribs sold at a loss.
Two worlds of Norwegian food. Two completely different ways of valuing it.
In retail stores, it's about one thing: being cheapest on a few loss leaders to win the Christmas food price comparison. But who pays the price?
Grocery expert Odd Gisholt is clear: All parties – both suppliers and retailers – take their share of the loss when chains dump prices. But it's the producers who have the thinnest margins to begin with.
Meanwhile, the three major grocery chains deliver profits of well over 15 billion kroner annually. The Competition Authority concluded in 2024 that both suppliers and grocery chains earn far more than expected in a well-functioning market.
Price wars are not the same as healthy competition.
While retail stores compete on price, the food service market is growing at double-digit rates.
The difference? Food service builds on predictable contracts, quality, and value chains where both buyer and producer can actually earn money. When a restaurant orders lamb ribs from a local producer, they pay what it costs to produce good food in Norway – not rock-bottom prices.
This isn't premium food for the few. This is what happens when food's value is actually reflected in its price.
If we're serious about building sustainable food production – why do we accept a retail market that operates on the opposite principle?
At Reddiksen, we work every day to connect producers with end-consumers. We see how it works when both parties actually want the other to succeed. Food service proves it's possible to do things differently.
Maybe it's time for the rest of the food market to learn from it.
#localfood #foodservice #foodvalue #grocery #agriculture
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