Ethnic Grocery Store Industry in Kinn: Current Status and Outlook

Overview of the industry

The ethnic grocery store industry in Kinn is a small but growing sector with two registered companies. In recent years, the industry has shown significant increases in sales, especially from 2020 onward. Although the number of employees has been unstable, sales growth has been consistent, indicating increasing demand for specialized food products in the region. The industry has also shown variations in financial results, with one of the companies (Best Flavour As) reporting a positive EBITDA, while the other (Beths Asianmat V) has been inactive.

Sales:

• 2016–2019: Sales were below 500,000 NOK, but increased sharply to 4.2 million NOK in 2020 and reached 7.7 million NOK in 2024, a growth of 25.5% from 2023 to 2024.
• The most dramatic increase occurred 2019→2020 (+803.8%), which can be linked to increased population numbers or changes in consumer preferences.

Employees:

• The number of employees has been very unstable, with a minimum of 0 employees in 2016–2019 and a maximum of 6 employees in 2021. There was a 500% growth in 2020→2021, but a decline of 80% in 2025→2026.
• This indicates that the companies have been dependent on fluctuations in operational activity and customer base.

Financial results:

• Best Flavour As has reported an EBITDA of 20,000 NOK and an operating income of 7.8 million NOK, while Beths Asianmat V has been inactive with zero sales and zero employees.

In Kinn, there are 2 companies in the ethnic grocery store industry:

1. Best Flavour As (Vestnesvegen 6, Florø)

• Organizational form: AS
• Founded: 2018-01-18
• Number of employees: 0
• Sales: 7.8 million NOK
• EBITDA: 20,000 NOK
• Operating income: 7.8 million NOK
• EBITDA margin: 0%

1. Beths Asianmat V (Gate 1 152, Måløy)

• Organizational form: ENK
• Founded: 2014-02-17
• Number of employees: 0
• Sales: 0 NOK
• EBITDA: 0 NOK
• Operating income: 0 NOK

Organizational forms:

• AS (1 company)
• ENK (1 company)

In Kinn, ethnic grocery store activity is distributed as follows:

• Florø: Best Flavour As (Vestnesvegen 6)
• Måløy: Beths Asianmat V (Gate 1 152)

There is no detailed data on the distribution of activity within the municipality, but the two companies are located in two of the municipality's most populated neighborhoods. This suggests that it may be advantageous to position oneself in central or populated areas to reach the target audience.

Bankruptcies and financial challenges:

• Best Flavour As is not in a bankruptcy situation, but has a low EBITDA margin (0%), which indicates that the operating result is highly dependent on cost control.
• Beths Asianmat V has no sales or employees, which may indicate that the company is not active today.

Operational fluctuations:

• The number of employees has been very unstable, with a maximum of 6 employees in 2021 and a minimum of 0 employees in 2016–2019. This may be linked to fluctuations in the customer base or operational challenges.

Conclusion: The industry has shown growth potential, but the companies are exposed to large variations in operating results and number of employees. This requires a good business plan and flexibility to handle challenges.

Growth potential:

• Sales have grown strongly from 2020 onward, with a 25.5% growth in 2023→2024. This indicates increasing demand for specialized food products in the region.

Beyond the company level:

• It is possible that increasing population numbers and increased internationalization in Kinn can provide more opportunities for specialized stores.

Challenges:

• Unstable number of employees and low EBITDA margin (0%) at Best Flavour As indicate that the operating result may be sensitive to changes in costs or customer base.
• Competition from larger supermarkets and chains (such as Ng Kiwi Vest As) can be a challenge for small, specialized stores.

Recommendation: Founders should consider positioning themselves in central or populated areas and focus on differentiating their offerings to compete with larger chains.

Contrast to the ethnic grocery store industry:

• The services sector in Kinn has 38 companies, which shows that it is a much larger and more diversified sector compared to the ethnic grocery store industry (2 companies).
• Sales in the services sector have been more stable, with a 17.5% growth in 2019→2020, while the ethnic grocery store industry had an 803.8% growth in the same period.
• The number of employees in the services sector has been more stable, with a 5.3% growth in 2023→2024, while the ethnic grocery store industry had a 100% growth in 2022→2023.

Peer companies in the services sector:

• Ng Kiwi Vest As Avd 883 Florø (sales: 102.5 million NOK, EBITDA: 4.6 million NOK, 28 employees)
• Eurospar Krokane (sales: 119.5 million NOK, EBITDA: 2.9 million NOK, 48 employees)
• Rema 1000 Deknepollen (sales: 0 NOK, EBITDA: 0 NOK, 12 employees)

Conclusion: The services sector has a much larger volume and more stable trends compared to the ethnic grocery store industry. Founders should consider analyzing competition from larger chains and finding niche areas to differentiate themselves.

The ethnic grocery store industry in Kinn has shown growth potential, especially after 2020, but the companies are exposed to large variations in operating results and number of employees. It is important to focus on operational stability and differentiation of offerings to compete with larger chains. Outlooks for founders are positive, but it is necessary to carefully analyze local market dynamics and competitive solutions. SmartGrunder can help founders find optimal addresses in Kinn for this industry, based on natural and development trends.