Cracking the Finnish Retail Market: S Group and Kesko

Finland may be small in population, but its grocery retail scene is run by two giants. S Group (SOK) and Kesko (K Group) together hold more than 80% of the market. For any international brand, they are both the challenge and the opportunity.

S Group, the Cooperative Network

S Group is a nationwide cooperative owned by millions of Finns. Shoppers collect “Bonus” with their green card when buying groceries, fuel, hotel nights or restaurant meals. Their grocery stores include Prisma hypermarkets, S-Market supermarkets and smaller Alepa or Sale convenience stores.

With nearly half of the grocery market, S Group has a huge influence. As a cooperative, they focus on loyalty, trust and long-term value. They expect products that fit into Finnish daily life, are reliable and support sustainability.

Kesko, the Entrepreneurial K Group

Kesko operates differently. Their stores are run by independent K-retailers under brands such as K-Citymarket and K-Supermarket. Each retailer tailors the selection to local customer tastes. A K store in Lapland can look very different from one in Helsinki.

Kesko accounts for about one-third of the market. They are known for quality, flexibility and strong private label products under the Pirkka brand. To succeed with Kesko, you need to convince both central buyers and local store owners.

Why This Duopoly Matters

In Finland, entering S Group or Kesko means nationwide reach. Outside them, options are limited. Lidl is the only other significant player. This makes market entry efficient, but standards are high and competition with private labels is tough.

Localization is key. Packaging must be in Finnish and Swedish. Flavors should match local preferences. Marketing should feel authentically Finnish. Lidl learned this when it shifted from German imports to highlighting Finnish products, which helped it gain popularity.

Tips for Getting In

• Do your homework and know your competitors.
• Adapt your packaging with Finnish and Swedish labels.
• Highlight what makes your product unique, such as quality, sustainability or novelty.
• Start small with a pilot in a few K stores or one S Group region.
• Support your launch with in-store tastings, seasonal campaigns and Finnish-language marketing.

How OFRD Can Help

Breaking into Finland’s consolidated retail market takes more than just a good product. You need local insight, the right connections and campaigns that truly resonate with Finnish consumers. This is where OFRD’s go to market services come in.

We research the market, map consumer behavior and create a clear entry roadmap. We help localize your brand story so it feels natural to Finnish shoppers while staying true to your identity. And we don’t stop at consulting – we execute. From demo tours and in-store tastings to event activations and local partnerships, we make sure your brand gets noticed by both retailers and consumers.

With OFRD, your brand does not just arrive in Finland. It becomes part of everyday life here.

Sources

• Finnish Grocery Trade Association: S Group and Kesko together held about 82.6% of Finland’s grocery market in 2023
• S Group cooperative structure and loyalty system
• Kesko’s independent retailer model and “world’s best grocery store” award
• Lidl’s adaptation to Finnish consumer preferences
• Finnish packaging and labeling requirements (Finnish and Swedish mandatory)

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