Af Morten Suhr Hansen
One of the most spectacular business deals of the year in Denmark has just taken place. That’s how the news can be described when it was announced a few weeks ago that Danish grocery giant Dagrofa has acquired Aarstiderne, one of Denmark’s most iconic subscription companies and a frontrunner in organic and sustainable food production.
It’s no secret that Aarstiderne is one of the subscription companies I feel most connected to, both as a longtime private customer and through Subscrybe, where Aarstiderne has been a valued client for many years. In my latest book, The Subscription Movement, I even highlighted Aarstiderne as one of the two companies that helped drive a successful early shift toward subscription-based business models (the other being Netflix). So, full disclosure: I might be a bit biased as I delve into Aarstiderne’s business and put Dagrofa’s acquisition into perspective.
Det er ingen hemmelighed, at Aarstiderne er én af de abonnementsvirksomheder, som jeg har den varmeste relation til. Som privat kunde gennem mange år, men også gennem Subscrybe, hvor Aarstiderne er én af vores tætte kunder gennem mange år. Da jeg skrev min seneste bog ’The Subscription Movement’ beskrev jeg endda Aarstiderne som én af de to virksomheder, der tidligt skubbede til en succesfuld bevægelse mod abonnement (den anden er Netflix). Så helt uvildig er jeg nok ikke, når jeg her dykker ned i Aarstidernes forretning og prøver at perspektivere Dagrofas opkøb. Så ved du det.
Dagrofa aims to make Aarstiderne accessible to more Danes
When I first heard about Dagrofa’s acquisition of Aarstiderne, I’ll admit my initial reaction wasn’t entirely positive. History doesn’t inspire confidence. Take, for example, another major grocery chain, Dansk Supermarked, which acquired Skagenfood years ago. From the outside, it doesn’t seem like a major success, raising concerns about whether a large player like Dagrofa can handle a smaller gem like Aarstiderne.
However, looking deeper into the announcements, there might be reason for optimism. With Coop closing its Irma chain, Dagrofa’s analysis seems to be that there’s now a market opportunity to strengthen its Meny supermarket chain by focusing on organic and high-quality offerings. Their message is clear: the acquisition aims to make Aarstiderne accessible to even more Danes.
I’m rooting for this – and keeping a close eye on it. But before we see where this leads, let’s explore what makes Aarstiderne one of the most innovative and successful subscription companies of the past decade. These elements hold valuable lessons for other subscription businesses. Let’s dive into four key areas.
What does Aarstiderne do right?
- Customer-centric innovation. A successful subscription company is “always in beta,” and Aarstiderne is no exception. Innovation is a continuous process for them, not just reserved for special events or annual staff days. For Aarstiderne, it’s all about listening to customers while staying ahead of their needs. The company frequently launches new products, meal kits, and delivery models to consistently add value for its customers.
- Focus on relationships, experiences, and value. Is it obvious to say that a successful subscription business constantly works to strengthen customer relationships? Perhaps. But there are varying degrees of effectiveness in doing so. Aarstiderne has through recent years built a highly successful loyalty concept. with Aarstiderne Plus, which offers members even greater value, both monetary and emotionally, hereby creating even stronger connections with the company.
- Sustainability as a core value. Few subscription companies in Denmark have a stronger mission or core story than Aarstiderne. Their purpose is to drive change in organic and sustainable food production, and they aren’t afraid to champion this cause to their customers. Aarstiderne’s mission is to transform their customers’ daily lives for the benefit of the planet. Is it lofty? Absolutely. But it also fosters passionate fans and high loyalty within their target audience.
- Customer service as a cornerstone. Aarstiderne’s customer service lives up to its promise of quality. They’re known for quickly resolving issues and ensuring customers feel heard. For the most successful subscription businesses, customer service isn’t a cost but a crucial part of the value proposition. Aarstiderne understands this better than most.
What would Aarstiderne do?
Aarstiderne is a prime example of how to build and operate a successful subscription business. Their focus on customer needs, sustainability, relationships, flexibility, storytelling, and customer service makes them a role model for other companies.
Now, we can only hope that Dagrofa becomes a skilled steward of the incredible legacy created by Aarstiderne’s founders, Søren Ejlersen and Thomas Harttung, and carried forward by Aarstiderne’s talented employees over the years. Could we even hope that some of these strong values might influence Dagrofa’s supermarket chains?
Today, Danish grocery retail is unfortunately not known for quality, innovation, or building strong customer relationships. So, let’s hope Dagrofa starts asking themselves the same question you can use in your own subscription business the next time you face a strategic decision: What would Aarstiderne do?
