Axfood to Take Over Beverage Distribution

Regulatory News:

Axfood Sverige (STO:AXFO) has decided to take over the distribution of beverages such as soft drinks, water and beer. This is currently handled by the breweries. The change will result in more efficient use of the company’s delivery fleet and thus lower environmental impact. For the stores it will lead to increased opportunities for beverage deliveries and better service, while for customers it entails that products will always be available on store shelves.

"We estimate that for what previously required three lorries, we can now manage with one,” says Anders Agerberg, Divisional Director for Axfood’s Sverige’s logistics function. This means less emissions to the environment.

Axfood Sverige handles deliveries of most of products to the Group’s stores. By also delivering beverages, capacity utilization of the fleet can be improved. Since many stores receive deliveries from Axfood Sverige daily, they can now also receive beverage deliveries just as often. Conversely, there will be fewer occasions to receive deliveries when beverages are not delivered separately.

The chains that will receive beverage deliveries from Axfood Sverige’s lorries starting next spring are Willys, Hemköp and Tempo.

Axfood AB conducts food retail and wholesale business in Sweden. Retail business is conducted through the wholly owned store chains Willys and Hemköp, comprising 254 stores in all. In addition, Axfood collaborates with a number of proprietor-run stores that are tied to Axfood through agreements. These include stores within the Hemköp as well as stores run under the Handlar’n and Tempo profiles. In all, Axfood collaborates with approximately 820 proprietor-run stores. Wholesaling is conducted through Dagab and Axfood Närlivs. Axfood is listed on Nasdaq OMX Stockholm AB's Large Cap list. Axel Johnson AB is the principal owner, with 50,1% of the shares.

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