The chairman of the Confederation of Swedish Enterprise (Svenskt Näringsliv), Jacob Wallenberg, takes a very negative view of the ongoing boycott against the Swedish food giants and believes that they are not to blame for the soaring food prices.
The Nordic Times has previously highlighted how food prices have increased by an average of 25 percent in just three years – and that many individual food products have become many times more expensive than that.
At the same time, ICA and other large food chains are making profits in the billions, and as an act of protest, many Swedes are therefore choosing to participate in a widespread boycott against the large grocery stores.
– In general, I would like to see a price reduction on all basic goods, at least most of them, that people are forced to buy, explains 27-year-old Filippa Lind.
“Directing anger at the wrong people”
Not everyone supports the boycott. Jacob Wallenberg, chairman of the Confederation of Swedish Enterprise, Investor, and SEB, argues that ICA and other major retail chains, despite their billion-dollar profits, should not be blamed for the sharp price increases.
– This is directing our anger at the wrong people, which I find unfortunate, he told TT.
– I understand that people think it is expensive to buy food, that people are being squeezed. But it would be wise if the discussion was about facts, he continues.
“Crop failures and inflation”
According to Wallenberg, Swedish food prices have risen less than the EU average over the past four years, and he believes several factors are driving the price increases.
– It’s not individual grocery stores that have created this situation. It’s crop failures, inflation, and more. The same situation exists across Europe.
Today, ICA, Axfood, and Coop control about 90% of Sweden’s grocery market, with ICA being the dominant player, holding roughly 50% of the market share.
Last year, ICA Sweden reported a gross profit of SEK 26 billion (€2.4 billion) – but despite this, CEO Eric Lundberg says they are “doing everything we can to help customers”.