Our Business and the problem we solve
Matsajten is the first digital B2B marketplace where actors from Swedish food industry can buy and sell products without passing through the industry’s gatekeepers.
With a clear understanding of the industry and easily compared prices, Matsajten is built for making bargains – regardless of the size of the companies buying and selling. The site enables small, local producers to easily market and sell products without wholesalers, and restaurant owners to sell excess food purchases, thereby decreasing waste.
Up until now the financial success of Matsajten has been a result of the trade from small, local producers and advertising revenue thanks to strong and increasing traffic to the site.
Since the founding of the company in 2014 an intense development of the platform has taken place. New investors with long experience from the food industry have chosen to invest in the company and the industry itself has shown great interest. The scalability of the business, its low overhead costs, ownership of the code for the platform and a great amount of related domain names are just a few examples of the good qualifications that have made Matsajten as attractive as it is.
At present Matsajten is the only platform of its kind, and we have a clear vision to create progress in the industry and further develop the site.
The Problem We Solve
Today there are three major wholesalers that today dominate the B2B trade in the Swedish food industry. The wholesalers decide which products will be included in the selection offered to the restaurants, but to get included in that selection an extensive and expensive campaign is often required – something very hard to accomplish for a small producer. A lot of producers also testify that there is a lack of feedback regarding their products impact and sales.
At the same time we see a change on the B2C side of the industry, where companies such as Mathem, Matsmart and Linas Matkasse have managed to digitalise the consumption of foods.
Matsajten solves the problem with the gatekeepers of the industry by taking e-commerce in foods to B2B, offering a digital meeting place and marketplace completely focused on the actual needs of the industry: exposure, product launch, offers and an online store for the industry.
Today Matsajten is a digital platform, a meeting place and a marketplace dedicated to fulfill the actual needs in the B2B food industry. Its purpose is to create low thresholds, minimize the trade barriers and, as a result, to simplify trade for all engaged parties. Matsajten is also the only website in the B2B food industry, which offers well-developed mechanisms for fast and easy price comparisons.
Matsajten’s strengths are in:
• Satisfying the needs of small producers by providing them with an online store.
• Offerring the opportunity to test a new product on the market without a large marketing budget.
• Enabling relationships between local producers and restaurants, which want to limit their offerings to – for example – only locally grown food.
• Reducing waste of food.
• Representing a marketing channel that can easily replace expensive and old-fashioned items and product catalogues.
A new version of Matsajten – an even better solution
We know that profitable and stable business is built on strong relationships and mutual trust, which is why we are now developing Matsajten further. Along with improving the current functions, we also want to implement a tool that will help buyers and sellers to find each other.
An updated Matsajten will enable producers and wholesalers to upload entire article registers, containing up to 100 000 items. The items in those files will then be automatically transformed to marketing ads with all the necessary information about the supplier and the product. We already have several formalized collaborations with local producers such as Grythyttans Brygghus, wholesalers like Restaurangjouren, as well as multinational companies such as Aviko.
To progress further, Matsajten has established a number of strategic partnerships.
One key partner is the shipping company Bring Frigo, which guarantees fast and secure shipping for our users. Thanks to this cooperation, Matsajten’s users have also an access to new services provided by Bring Frigo at an early stage. Some these services are expected to be implemented later this fall. Another key partner is Restaurangjouren, a growing wholesaler in Stockholm and Mälardalen area. This partner provides Matsajten with products and ads and also serves as a valuable source of feedback from the industry.
Unique Selling Point
Matsajten is THE ONLY business in the Swedish market, which offers a digital, independent and regional B2B marketplace within the food industry. This is Matsajten’s “unique selling point” and the reason why users will choose Matsajten over other, more limited options.
The Swedish food industry is one of the industries showing the greatest growth rate online. In 2014 the industry increased by 41% and had a turnover of SEK 3 billions (including VAT) in Sweden. According to Swedish trade organization Svensk Digital Handel, the total foods trade had a turnover of SEK 275 billions*, making the percentage consumed online equivalent to just over 1% and growing further.
The development of the industry
IPSOS Sverige in 2014 did a survey on behalf of EY, asking business leaders in the Nordic food industry about most important future trends in food industry. The answer was “quality” in its broadest sense, covering everything from ingredients to convenience. The most significant factor for the period up until 2020 was, according to the business leaders, the consumption of foods through online services.
In 2015 IPSOS followed up the study by asking consumers in the Nordic countries about their food preferences and the way they want to shop food for the next five years. The result is exciting and challenging. It also shows a clear indication of how the food trade will move from physical stores to e-commerce in a near future and proves that Matsajten is in the right place at the right time.
What We Will Use The Money For
The requested capital will mainly go to direct investments in the digital platform. Secondly, more capital will be needed to strengthen the organization with sales representatives and an IT development unit.
The digital platform
In order to reach our growth targets, substantial investments in the digital platform are required. Through extensive technical investments, Matsajten will be compatible with the leading business system of the industry and the food industry’s own product system Dabas. This is a very advanced integration process and external consultants will be necessary for a successful result.
To enable restaurants to shop for the lowest price possible, Matsajten is improving its functionality for price comparisons. The function will be compatible with other parameters such as geographical location, product groups and etc. It will make Matsajten the only webpage for price comparisons in B2B food industry.
An important function primarily for small producers is to offer gathered purchases and deliveries. That is why Matsajten is developing an improved customer basket function. This way a small producer won’t need an online store of their own but can use Matsajten for this purpose and thereby save capital.
See sketches of the new functionality in the Documents section
Increased geographical distribution
Matsajten plans for strong growth in both traffic and advertisment. To meet this target, more sales offices are needed around the country. Increased geographical distribution is necessary to work with producers and wholesalers at a high pace with presence and commitment. We are convinced that within a year this will show to be well-invested resources, however, short-term salary costs will increase without immediate connection to the revenues.
In-house IT development unit
IT developers with proven knowledge about security and trade have developed Matsajten. At present, IT development needs to be done in-house in order to not risk pace and flexibility. Therefore, an IT development unit will be created. This way, development and daily maintenance will be done quickly and safely.