A consumer is highlighting a significant price disparity for a popular cheese product between Norway and Sweden.
Ole Martin Gilde, 43, of Sarpsborg, discovered that a kilogram of Norvegia cheese costs 150.30 Norwegian kroner at Kiwi, Extra, and Rema 1000 in Norway, while the exact same cheese is available for 89.90 Swedish kroner at the Willys chain in Sweden when he went shopping in Strömstad last Friday.
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Gilde, who is not affiliated with the brand of the same name, frequently shops in Sweden due to his proximity to the border. He has been tracking prices on both sides of the border and expressed frustration with what he describes as an unexplained increase in the cost of Norwegian dairy products.
“The Norwegian prices for Norvegia are what have irritated me the most,” Gilde stated. “Before the pandemic, a kilogram cost 109 kroner in Norway. Since then, there has been a steady increase, often by 10 kroner at a time. The fact that 150 kroner is now a ‘fixed price’ in Norwegian discount stores is a disgrace.”
He further contends that remaining stock is being shipped out of the country and sold at bargain prices to avoid lowering prices in Norway.
Nettavisen contacted Tine for comment.
“The claim that the cheese sold in Sweden is leftover stock or surplus stock is not true. Here’s Norvegia from regular production,” said Hanna Kolbjørnsen Lilleengen, Tine’s communications advisor, to Nettavisen.
See responses from Coop, Rema, and Kiwi further down: Pointing to Tine, costs, and taxes
MORE EXPENSIVE: The price for a kilogram of Norvegia is 150.30 at Rema 1000, Kiwi and Extra. Photo: Erik Molland (Nettavisen)
Lack of Trust in the Giants
Regardless of the explanation, Gilde believes these price examples contribute to a lack of trust.
Gilde posted a message about the prices in the Facebook group Price War, Food Offers and Flyers, which is run by Gjerrigknarken.
The comment section is full of opinions on both the prices and the reasons why they are the way they are.
Some theorize that the cheese sold cheaply in Sweden is a “different product” or not authentic.
“That says a lot about how confused Norwegian consumers are, and how little trust they actually have in the grocery giants,” he believes.
Similar and Different in Norvegia and Jarlsberg
It’s not surprising that many are confused, as Norwegian Jarlsberg sold in Sweden is made with Irish milk, while Norvegia cheese is the same in both Sweden and Norway.
Gilde points to the Norwegian grocery monopoly, where the three major players control almost the entire market.
“They own the properties, they are wholesalers for themselves, and they control the logistics. I call them ‘oligarchs.’ They use Norwegian brands as bait at the border to draw us into stores they often have ownership interests in.”
Disappointed in Norwegian Culture
Although he lives near the border and can save significant amounts of money, he is thinking of those who do not have the same opportunity.
“There is a clear advantage for those of us in the borderland. It’s worse for those who live further inland or do not have transportation. They just have to accept these ‘insane’ prices.”
He also believes that the Norwegian way of life makes it easy for the giants to continue.
“We just accept everything and pretend it doesn’t concern us. You shouldn’t say anything or stand out. That’s why I continue to leave my money in Sweden. It’s cheaper anyway, even when you factor in fuel and exchange rates.”
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Exchange Rates and VAT
Different VAT rates and a weak krone can explain some of the price differences, but far from all of them.
As of Wednesday, the kilogram price of Norvegia was 150.30 kroner at both Kiwi, Rema 1000, and Extra.
This is significantly higher than the promotional price in Sweden of 89.90 Swedish kroner. Even the normal price is higher.
It is currently 129 Swedish kroner.
Taking into account
Here’s how the calculations break down:
- Normal price at Willys in Sweden: 129.00 Swedish kroner.
- Converted to Norwegian kroner, that is 134.45 Norwegian kroner.
- Subtracting the Swedish VAT of 12 percent brings it to: 120.94 kroner.
- Adding the Norwegian VAT of 15 percent brings it to 139.08 Norwegian kroner.
At the so-called discount chains Kiwi, Rema 1000, and Extra, the price is 150.30 kroner.
This means the price of the Norwegian Norvegia cheese is 11.22 kroner higher than in Sweden – even after adjusting for VAT and exchange rates.
Coop Points to Tine
Nettavisen asked the chains to explain the large price differences.
“Norvegia is frequently on offer in Norway and is not a food item we make much profit on,” said Harald Kristiansen, Coop’s communications director.
Kiwi and Rema 1000 also point out that they regularly have Norvegia on promotional prices.
“We do not recognize what the Swedish chains pay for the cheese, but there are significant differences in the framework conditions and cost levels between Norway and Sweden,” said Kristine Arvin, communications director at Kiwi.
She points to high taxes, increased milk and electricity prices, and a generally expensive wage and logistics level.
“All of this affects the final price of goods such as cheese,” she says.
Rema 1000’s purchasing director, Lie Aarnes, responded as follows:
“We do not have insight into how border stores set their prices or what purchasing conditions this store has, but Norvegia is often an essential draw in border trade, which may contribute to extra low prices on certain products,” says Aarnes.
She points out that Rema 1000 currently has a two-kilogram Norvegia for 109 kroner per kilogram. Compared to the promotional price in Sweden, it is still a considerable distance. In Sweden, the price is 89.90 Swedish kroner, which corresponds to 94.40 Norwegian kroner.
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