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Bliv på siden | Fortsæt til en relateret side på danskDLVRY saw the light of day in 2021 and already generates revenue of close to four billion Norwegian kroner (more than 360 million US dollars). One of the secrets lies in local roots and focus on sustainability, combined with favourable financing solutions such as sustainability-linked loans. Here, DLVRY explains how they have managed their growth journey together with Nordea.
“Many restaurants are upset about the fact that the level of service provided by wholesalers has deteriorated,” says Vegard Fladby, Marketing and Sustainability Coordinator at DLVRY.
Since 2021, the company has acquired twenty wholesalers in Norway – from Kristiansand in the south to Harstad in the north. This is naturally a major change process for the various undertakings.
“Some of them are family-run businesses that have existed for up to 140 years, with strong local roots. But like many others, they have found it very difficult to survive as an independent business.”
DLVRY has been a customer of Nordea since its incorporation in 2021. They have mainly been assisted in financing acquisitions of wholesalers, in addition to a sustainability-linked loan.
“In collaboration with DLVRY, we have developed three KPIs (key performance indicators for measuring progress) related to sustainability,” says Henrik Stephansen, Account Manager for DLVRY at Nordea.
The KPIs are electrification of vehicles, waste management and requirements for suppliers’ codes of conduct, which include human rights requirements. Based on whether the targets are met or not, the terms of the loan will be adjusted either up or down. In this sense, this type of financing uses both the carrot and the stick to encourage a sustainable transition.
According to Henrik, sustainability-linked loans are part of a larger development in the market.
“Just five years ago, there was less talk about sustainability. But now customers come to us and discuss the issue,” he says.
Vegard at DLVRY emphasises the importance of building a solid, sustainable foundation for the company.
“By getting a clear overview as early as we did, it has been possible to take the right steps early on and be proactive,” he says.
The weight, experience and professionalism that Nordea brought to the table made it much easier for us to do the extensive work. I don’t know where we would have been if we hadn’t taken the bull by the horns together with Nordea.
Vegard describes the collaboration with Nordea as a “before-and-after divide” for the company:
“For us, talking to other banks was never an option,” he says.
“The weight, experience and professionalism that Nordea brought to the table made it much easier for us to do the extensive work. I don’t know where we would have been if we hadn’t taken the bull by the horns together with Nordea.”
DLVRY was assigned a dedicated sustainability adviser at Nordea, who, according to Vegard, was available at almost any time.
“Feeling prioritised by such a large bank was almost unexpected, but a very pleasant surprise, of course.”
For DLVRY, being committed to sustainability is a matter of course.
“This sustainability-linked loan, together with action to increase the share of environmentally certified wholesalers, confirms our commitment to reducing environmental impacts and running a sustainable business,” says Tone Selstad, Quality and Sustainability Manager at DLVRY.
New management systems also characterise future sustainability work.
“In line with our focus on sustainability, we are working to establish a common management system to ensure a comprehensive and effective approach to regulations, quality and sustainability across the organisation,” she continues, adding:
“We see this as a necessity in order to meet the expectations of customers, partners and society at large.
Although most Norwegians are proud to live in a vast country with fjords, mountains and valleys, the geography also presents a range of challenges for wholesalers. Being able to assist more sparsely populated areas is an important part of DLVRY’s vision.
“Not everyone wants to move to the cities. Our goal is to be able to provide a high level of service, flexibility and quality to companies in rural areas too – and to allow them to continue to grow and develop,” says Vegard.
He explains that the wholesale industry is unpredictable, and suddenly you need a delivery with a deadline of one to two days. In such a situation, DLVRY is able to deliver precisely because they are present where it happens.
“We’re trying to get the best of both worlds – the companies achieve some economies of scale while retaining their local roots.
Finally, Henrik has a tip for companies that want to become more sustainable:
“Discuss it with your bank and challenge them on their sustainability work,” he says.
“As the largest bank in the Nordics, we’ve had the opportunity to build up a large team of experts – both locally and at the Nordic level.”
Besides having sustainability specialists located in every region, Nordea has taken action in recent years to hire everything from sector analysts to biodiversity experts and geologists to draw on as needed.
“We want to be a sparring partner for our customers in their transition process,” says Henrik.
Are there any pitfalls, then?
“If there are, it must be the balance between financial growth and sustainability,” says Vegard.
“After all, we mostly drive outside the Ring 1 road in Oslo. And since one of our goals is to electrify the vehicles, while we have to drive seven hours one way from Harstad to Kautokeino, it’s clearly a challenge.”
But according to DLVRY’s customer contact at Nordea, there is not necessarily a contradiction between profit and sustainability.
“It’s becoming a prerequisite for the existence of companies. If you don’t join the transition, access to capital and new assignments can become much more difficult,” says Henrik.