HKScan takes on new territory in the demanding Chinese market

Hema chain stands out in the Chinese market with high-quality and exceptional products. This chain is very hard to get in to, only a couple of Finnish products have been accepted to the chain. The pure taste, healthier fat composition plus the arctic twist of our products convinced Hema and they made a quick decision to include our products to their selection, Jukka Nikkinen, head of HKScan exports says.

Alibaba introduced its semi-automatic, state of the art concept store chain in 2017. At the moment there are around 100 Hema supermarkets across China.

Paving the way for the Finnish food industry

• This is of course a significant step to HKScan, but getting into this very exclusive Hema-league also paves the way for other clean and safe Finnish products. Hema’s unique online store facilitates our branding efficiently and we get to tap into the right consumer segment, Nikkinen continues.

Hema stores are part of Alibaba’s new retail strategy which integrates online and offline shopping. Hema stores are based on three pillars: they are a place to shop in person, they serve as distribution centres for online orders and have also cutting edge built in restaurants where orders are delivered by robots. Purchases can be made through the Hema mobile app, which is linked to Alipay.

Next step – growing the distribution area

The next concrete steps in HKScan’s export journey in China have been planned.

• We are growing the distribution inside Hema chain in Shanghai and the nearby areas. After that our target is to expand to other premium food stores both online and offline. In addition to Shanghai area we are looking also to expand to other Tier-1 cities, Nikkinen tells.

Hema concept in a nutshell: From the shelf to the front door in 30 minutes

• In Hema stores consumers are filling their virtual shopping carts with a mobile app.
• By scanning the QR-code of the product consumers learn more about the story behind a product, including how it was produced.
• The groceries will be delivered straight to the cash register or when ordering online they are delivered all the way to the consumer’s home.
• After the collectors have gathered the products, scoter couriers deliver to home in 30 minutes.
• The delivery service serves customer’s in 3 kilometers radius.

Background factsheet:

• HKScan launched pork exports to China from its Forssa production unit on 23 April, 2018.
• HKScan’s products will be targeted at the Chinese retail sector, industrial customers and the HoReCa sector. The targeted export volume for the first year is 3 000 tonnes of pork meat, with plans to triple that volume by 2020.
• On 26 February 2018, HKScan signed an agreement to establish a joint venture in China with Zhejiang Qinglian Food Co. Ltd. The agreement was signed in Haiyan, a town near Shanghai where Qinglian Food is headquartered.
• Nordic Lotus Food Co, HKScan & Zhejiang Qinglian Food’s joint venture to sell and market premium products, was officially registered at the end of September 2018.
• HKScan currently exports meat to nearly 50 countries. This includes pork exported to numerous EU countries as well as to New Zealand and Japan.
• The Chinese food authorities granted an export permit to HKScan’s Forssa plant, which is ISO 9001, 14001 and FSSC 22 000 certified. The unit already had export licenses for other markets including the USA and Russia.
• HKScan sources its Finnish meat raw material directly from its 3 400 pig, beef and poultry contract farmers.
• Rypsiporsas^® (Omega-3 pork) is a globally unique innovation developed on the basis of years of meticulous research. In Finland the product is known as Rypsiporsas^® and in Sweden as Rapsgris^®. Omega-3 pork pigs are fed on domestic grain and rapeseed grown exclusively on local farms in Finland and Sweden. All protein sources in the animal feed – rapeseed, peas and broad beans – are also 100% domestically grown. No soy meal is required as an additional protein source. The piglets’ diet is carefully monitored, as is the composition of their feed, their consumption, and their growth rates. In Finland, all Omega-3 pork^® meat is sourced exclusively from carefully selected Finnish farms. Omega-3 pork^® is softer-textured and healthier in fat composition, as unsaturated fatty acids predominate over saturated fats, which also makes the meat tastier and tenderer than regular pork.