Axfood chooses Danish Crown for meat packaging

Axfood chooses Danish Crown for meat packaging

Starting in 2009, Axfood's meat will be packaged in Sweden's most modern
meat-packaging plant. The plant will be operated by Danish Crown and will be
located in southern Sweden. 

“We have reached an agreement with Danish Crown under which they will build the
plant to package most of the meat sold by Hemköp's and Willys' stores,” says
Torbjörn Lithell, Head of Axfood's Meats Business Area.

The agreement with Danish Crown covers only packaging - the meat will continue
to come from the suppliers that Axfood has chosen to work with. 

“It is important for us to choose suppliers we want to work with based on
quality, price and national origin,” says Lithell. “Consequently, this agreement
covers only packaging and not the actual meat.”

Danish Crown is a leading player in the European meat packaging market and one
of the world's largest suppliers of pork.

“We need a plant with greater capacity than the one we have today,” Lithell
adds. “But it's not only a matter of volume. Danish Crown operates several
plants across Europe, and we feel that they have the most modern solutions and
the best quality.”

The plant will measure approximately 8,000 sq. m. The exact location of the
plant has not yet been determined. Once the plant is in operation it will
provide 130 new jobs.

Mats Sjödahl, Head of Purchasing department, Axfood Sverige AB, +46-8-553 99 579
Torbjörn Lithell, Heat of Meats Business Area, Axfood Sverige AB, tel. +46-8-553
99 535 
Ingmar Kroon, Press Manager, Axfood AB, +46-702-89 89 83

Axfood AB conducts retail trade through the wholly owned store chains Hemköp,
Willys and Willys hemma, comprising slightly more than 220 stores, and wholesale
trade through Dagab and Axfood Närlivs. In addition, Axfood collaborates with a
number of proprietor-run stores that are tied to Axfood through agreements.
These include stores within the Hemköp chain as well as stores run under the
Handlar'n and Tempo profiles. In all, Axfood collaborates with over 500
proprietor-run stores. Axfood is listed on the Nordic Large Cap list of the OMX
Nordic Exchange. Axel Johnson AB is the principal owner, with approximately 46%
of the shares.