Covid-19 spurs Food Union to launch e-commerce platforms for European consumers

Date: 18.06.2020Source: Food Union

Food Union, a global dairy production and distribution group, has launched an e-commerce distribution service in four European countries, delivering ice cream, dairy products, pastry and frozen food directly to customers. Food Union will now deliver fresh high-quality products straight from production in Latvia, Lithuania, Romania and Denmark. The company’s consumer behaviour analytics models and established door-step-delivery systems in Norway and Denmark allowed for rapid development and expansion of the new e-commerce distribution system in other markets.

Said Normunds Staņēvičs, Food Union Group CEO Europe: “COVID-19 has done more to change consumer habits and behaviour than any event in modern history. We’re moving rapidly to demonstrate operational agility, create new delivery services, and meet our customers’ needs. We know we can bolster our brand and build trust by ensuring consumers enjoy their favourite products safely and quickly. We are thrilled to connect with our customers in a new way. From production to delivery, we are responsible for the whole value creation chain and guarantee the highest quality products while striving for the best, most efficient service possible.”

In record time, Food Union’s team of experts created secure e-commerce platforms with various product offerings in four European markets. Their new digital delivery service includes insights from local markets across Latvia, Lithuania, Romania and Denmark. Each online storefront offers unique products, ensuring consumers have their beloved branded products 24/7, directly from the production chain:

  • lt, a Lithuania based e-shop launched in March and established a nationwide delivery service for ice cream, frozen products and dairy products.
  • lv, an e-shop in Latvia launched at the end of April and now offers delivery services in the capital city Riga and locations up to 50km away. Products include fresh dairy, ice cream and frozen food, along with other products like bread, meat, and eggs, which are provided by partner suppliers in Latvia.
  • ro, based in Romania, launched its newly built e-shop in late April and their 24-hour delivery service brings select products to three main cities in Romania: Bucharest, Ilfov and Cluj. Their products include a wide selection of ice cream, frozen foods and pastries.
  • Hjem-is.dk, an e-shop based in Denmark, has enhanced its operations with a brand-new e-shop and continues to offers nationwide door-step-delivery. Their new e-shop platform launched in early May.

Added Staņēvičs: “Food Union constantly strives to be dynamic and agile. Our goal is to diversify sales channels while ensuring our products are geographically closer to consumers. Our team of in-country heritage experts applied their knowledge of local markets to provide the products our customers love across various countries and regions. And this is made possible because of our investment partners at Meridian Capital and PAG, who have enabled us to innovate and expand operations with their knowledge of global markets and infrastructure expertise.”

Said Askar Alshinbayev, Principal and Founder of Meridian Capital Limited, a global investment company based in Hong Kong: “Expansion into the digital market in four countries requires knowledge of pre-existing markets, customer needs and logistics development, all of which Food Union has worked quickly and tirelessly to develop. We are confident Food Union will continue expanding digital services beyond this crisis and continue to innovate based on the desires of the consumer.”

Food Union is currently the leading ice cream maker in the Baltics and Denmark, and holds a strong market position in Norway, Romania, Russia and Belarus. The Food Union Group’s shareholders include its founder and global head, Andrey Beskhmelnitsky; the Hong Kong-based investment company, Meridian Capital Limited; and one of Asia’s largest private capital firms, PAG. Meridian Capital Limited and PAG became Food Union shareholders in 2015 and 2018, respectively, to finance construction of two dairy plants in China and facilitate the company’s dynamic expansion to this market. For more visit foodunion.com

David Cox / IDM

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