Competition is increasing in Oslo, the world coffee town of 2012. Several new concepts have opened in recent years – and they all have expansion plans.
On average, Norwegians drink around 11 million cups of coffee each day
Last summer, competition for the Norwegian coffee customers intensified as world-famous Starbucks and Swedish Espresso House seriously went into Norway. E24.no has looked into the market.
Kaffebrenneriet, the only Norwegian player, sold coffee for 165 million NOK in 2013, making it by far the largest of the four players.
”We find it encouraging that there are several players in the market”, says Kaffebrenneriet founder Steinar Paulsrud.
Until last year, Wayne’s Coffee was the only foreign coffee chain in Norway.
The Swedish company opened its doors in Norway in 2008. Competition from the new chain has created problems for the company which had a deficit of 1.9 million last year, despite the chain’s turnover increased by 900,000 million to 45.9 million NOK.
”Nobody likes negative results. The Norwegian market has changed a lot over the last year. Several players have entered the market and led to an escalating competition”, says Geir Syversen, CEO at Wayne’s Coffee Norway.
He tells E24.no that the company still has plans to expand in the coming years with an expanded range and better locations.
Starbucks Norway, owned by investor Jens Ulltveit-Moe, confirmed to E24 that they have plans to open four new coffee shops in 2014. Two in Oslo, Drammen and Jessheim. Starbucks had sales of 27 million NOK in 2013, and ended up with a deficit of 11.5 million before tax associated with the opening of new coffee shops.
Over the past year, Espresso House in average opened a coffee shop in a month, and now has 12 pieces in the Oslo area. Overall, Espresso House plans to open between 35 and 40 coffee shops in Norway within a few years.
”Competition in the Norwegian market is tough. But Norwegians are quality conscious when buying coffee, and there will always be room for new players who deliver high quality”, says Norway manager Torodd Gøystdal Espresso House to E24.no.
He confirms that the company intend to expand to Bergen in 2016.
Gøystdal also says that the first coffee shop they opened in Norway in 2013 had sales of 5.6 million last year and that the company expects to have a turnover of 85 million NOK in 2014.