KNI enters into a major agreement with Danish retail giant

The Danish retail giant, Dagrofa, will expand its business to KNI's grocery chain Pilersuisoq at the end of this year.

- We have just entered into a very major agreement with Dagrofa, says KNI's CEO Jeppe Jensen to Sermitsiaq.

On November 1, KNI will replace Arctic Import/REMA 1000 with Dagrofa as the main supplier of groceries, primarily food, to Pilersuisoq.

KNI has entered into a three-year trade agreement with Dagrofa. This means, among other things, that Dagrofa's own brands, the so-called private labels, Gestus and First Price, will be part of the assortment in Pilersuisoq's stores in Greenland from the end of 2026. The two brands are successfully sold in, among others, MENY's stores in Denmark and retail stores in the Baltics.

Do customers in Pilersuisoq get cheaper groceries with your agreement with Dagrofa?

- With the developments we are seeing on the world market right now, it is more about avoiding raising prices too much. That is the main reason that we put the new main supplier agreement out to tender.

- We will strive to keep prices as low as possible for our customers, which the new agreement supports, says Jeppe Jensen.

Pilersuisoq in 53 villages and 11 towns

Currently Arctic Import is the main supplier of groceries to Rema 1000 to KNI's stores. This agreement runs for five years. In October last year, KNI put the new main supplier agreement out to tender to potential suppliers, including Dagrofa and Arctic Import/REMA 1000. Dagrofa won the tender and secured the agreement. However, the KNI director would not say how many bidders KNI has negotiated with.

- It is of course a very large agreement when Dagrofa becomes the main supplier of groceries in Pilersuisoq, says Jeppe Jensen.

With the agreement, Dagrofa will deliver goods to Pilersuisoq's stores in 53 settlements plus 11 towns, including the towns of Nanortalik, Narsaq, Paamiut and Aasiaat, where Pilersuisoq is in competition with Brugseni and Pisiffik.

Food and non-food

Dagrofa's deliveries include not only food, but also a wide range of non-food products, such as personal care and household goods, such as cleaning products, napkins and brushes.

- With the new agreement, we will purchase the goods from Dagrofa that our customers demand. Branded goods currently make up the largest portion of sales in our stores. So a very large part of Pilersuisoq's products will, with the agreement with Dagrofa, in addition to Gestus and First Price products in various price groups, be a lot of branded products, says Jeppe Jensen.

Dagrofa is currently delivering groceries to Pisiffik. At the same time that KNI has entered into the three-year agreement with Dagrofa, KNI has entered into an agreement with Arctic Import on continued cooperation on the purchase of beer, water, wine and spirits. This agreement is valid from 1 May this year and will run for a year and a half.

Is the agreement with Dagrofa a better agreement for you than the agreement with Arctic Import/REMA 1000, which expires at the end of October?

- Over the past few years, we have seen very large price increases for food. With the agreement with Dagrofa, we have chosen the set-up that, in our opinion, ensures KNI the cheapest, best and safest deliveries, says Jeppe Jensen.