Finnish companies usually seek shelf space in large German chains, such as Edeka and Rewe. A place on the shelf doesn't guarantee that the product will sell if German consumers are not familiar with the product. Retail chain buyers want to be certain that the product will sell, when making purchasing decisions. It is now high time to take the growth of online retail into account, says Lili Lehtovuori, an advisor in the Food from Finland program at Business Finland's office in Austria.
In April 2021, Laitilan Wirvoitusjuomat started selling gluten-free and alcohol-free Kukko beer on Amazon.de. Amazon has created demand for the product through internal marketing and social media, by directing consumers from discussion forums to Amazon. The advertising campaign's return on investment was 15%, and the product received excellent consumer reviews.
The demand on Amazon grew steadily, and the first full truckload was sold in a few months, according to Laitila's Export Director Marko Mikkola.
Our sales were very small in Germany before April, and we hadn't joined the German container deposit scheme, which is a prerequisite for growth in beverages in the local market. The deposit scheme is now in our product packaging and we can use it on other channels to grow the Kukko brand and support sales on Amazon, Mikkola says.
We have been able to test different product flavors and packaging sizes through the Amazon.de marketplace. According to Kiantama Eija Wall who sells Biokia berry powder to Germany, blueberry powder is our biggest seller in Germany and on Amazon it sells in a much larger packaging size than in stores.
The increase in prices hasn't been reflected in consumer buying behavior or Amazon sales.
We can also sell products to other German-speaking countries on the platform. Austria is the best market for Dried Buddy's jerky products. Timo Lahti, CEO of Dried Buddy, says that our product box of different flavors has gained great popularity in Austria, especially among outdoor enthusiasts and hikers.
Amazon.de has a 53% market share, making it the first place of choice for the German online buyer. The wide range of products, fast deliveries, and good customer service have raised the bar for other online retail operators. Amazon has increased its share of the grocery market to about 6%.
Business Finland's Food from Finland program helps Finnish food companies start selling their products on Amazon Germany, together with its partner Dash Retail. Dozens of food and beverage companies have already made their products available on the Amazon.de marketplace. Kyr Distillery, Porokyl n Leipomo, Helsingin Mylly, Panda and Fazer sell their products through their own account on Amazon Germany. A dozen or so Finnish food companies have a distributor. Opportunities exist for a wider range of food companies, according to Lehtovuori.
The food model developed by Food from Finland, Dash Retail, and Teamblue lists products on an account maintained by Teamblue, after which the products are delivered to Teamblue's warehouse in Germany. Teamblue manages the sales account and delivers the products to Amazon's warehouse as needed, while Dash Retail ensures that the products, pricing, packaging and marketing meet Amazon's requirements and best practices.