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MEAT

Swedish grocers’ earnings outstrip CEOs

The most successful franchisees of the Swedish grocery store chain ICA are coining in more remuneration than many CEOs of large companies listed on the Swedish stock market.

Swedish grocers' earnings outstrip CEOs

Dividend pay outs from profits earned on supplying goods to the Swedish grocery shopper elevate many ICA store owners to untold wealth which affords them such trappings of success as sports cars and luxury houses, according to a report in the Dagens Nyheter (DN) newspaper.

The ten most profitable ICA franchises enable their owners to extract more than 130 million kronor ($19 million) in dividends in 2008 – in addition to their salaries.

Leading the pack of wealthy grocers is Rolf Karlsson who is the owner/CEO of ICA Maxi in Gothenburg, DN reports. Karlsson claimed a dividend of 37 million kronor on top of his 1.6 million income in 2008.

Clothing retail giant H&M head Rolf Eriksen by comparison had to make do with only 17 million kronor, including bonus, while Volvo Trucks CEO Leif Johansson took home a mere 15 million kronor.

Rolf Eriksson’s remuneration is reported to be 125 times that of a cashier employed in his store and comes despite the economic downturn.

“People have to eat. Maybe you cut back on foreign travel and save on restaurant visits which means that more food is bought. This can be one effect,” Madelene Gummesson at ICA explained to the newspaper.

But the weak state of competition within the sector and lazy consumers are also cited as reasons for the booming profits at the grocery giant.

Gummesson points out however that the firm has cut prices on key goods on several occasions in the past year and argues that the improvements in profits and margin are due to increasing turnover and the reduction of logistical and administration costs.

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MEAT

German authorities impose second local coronavirus lockdown

Germany on Tuesday placed a second district under lockdown over a coronavirus outbreak at a slaughterhouse, just hours after similar restrictions were imposed for a neighbouring area.

German authorities impose second local coronavirus lockdown
A man wearing a protective suit in the district of Gütersloh after a coronavirus outbreak at a meat plant. Now neighbouring district Warendorf is going into lockdown. Photo: DPA

“In order to protect the population, we are now launching a further safety and security package to effectively combat the spread of the virus,” North Rhine-Westphalia health minister Karl-Josef Laumann said Tuesday, ordering a lockdown for the district of Warendorf.

Authorities had earlier announced similar measures in the neighbouring district of Gütersloh after more than 1,500 workers tested positive for Covid-19 at the slaughterhouse.

Almost 280,000 people live in Warendorf. Businesses and cultural facilities will close, while all schools and daycare centres (Kitas) will also shut their doors.

READ ALSO: Explained – What you need to know about Germany's new local coronavirus lockdowns

In Gütersloh the new lockdown affected 360,000 people living there and will be in place until at least June 30th.

It came after more than 1,500 workers out of a total of nearly 7,000 have tested positive for Covid-19 at the slaughterhouse in Rheda-Wiedenbrück run by Tönnies.

All workers are currently in quarantine. However, authorities are now turning to tougher rules to try and control the spread of coronavirus.

The new lockdown in Gütersloh means a return to measures first introduced in March, with cinemas, museums, concert halls, bars, gyms, swimming pools and saunas shut down.

However, restaurants can remain open with rules in place.

Schools and Kitas were already closed last week in a bid to control the virus.

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