Bo Sandelin owns an independent grocery store in Västerhaninge, in southern Stockholm. Axfood's Dagab is the only major wholesaler he has to choose from. He previously bought his goods from Bergendahls, but that company was bought by Dagab. The other major wholesalers are closed. ICA Coop and Lidl only sell to their own supermarket chains.

Requirements for the takeover

In order for Dagab to obtain approval for the purchase of Bergendahls, the Swedish Competition Authority made it a requirement that outside traders should not be discriminated against. Dagab also believes that the conditions for external stores are comparable to those for their own food chains.

"Otherwise, they would not have been able to compete in the market, which is very characterized by price pressure," says Nicholas Pettersson, CEO of Dagab.

But retailer Bo Sandelin claims that it has become more expensive with Dagab for what are called own groceries, ie goods that have the wholesaler's own brands, such as Eldorado and Garant. Private label products account for between 20 and 30 percent of the entire range in Bo Sandelin's store.

"The price level for own brands has gone up catastrophically, up to one hundred percent," says Bo Sandelin.

Disagree with the criticism

This is firmly contradicted by Dagab's CEO Nicholas Pettersson:

"No, we can't profit from the outside traders, the competition is too fierce.

The Swedish Competition Authority cannot open up the wholesale market so traders can buy from any wholesaler they want. The Swedish Competition Authority can only act when there is a takeover, as in the case when Dagab bought Bergendahls, which they approved.

"We don't have the instruments to do anything about it," says Rikard Jermsten, head of the Swedish Competition Authority.