RETAIL/WHOLESALE

Berlin  -  Surprising turnaround at Phoenix: Europe's leading pharmaceutical trading group, otherwise known for flexible solutions in matters of pharmacy chains, is leaving the Swedish pharmacy market only a few months after liberalisation. The concern does not want to jeopardise its position as leading wholesaler by means of marginal chain presence. The strategy of the day is: Consideration for the interests of the wholesale customers.

Just like its two pan-European competitors Celesio and Alliance Boots, Phoenix did not take on any pharmacies from the former state owned enterprise Apoteket. It is unclear whether the departure of chain head Øyvind Winther is also connected with the development in Sweden.

In any case, the concern evidently now has more to lose than to win: Besides the Oriola subsidiary KD, Phoenix is one of two pharmaceutical wholesalers in Sweden that exclusively distribute complete product ranges of certain manufacturers (single-channel system).

Since Oriola bought 171 pharmacies together with the supermarket chain Coop, Phoenix sees itself as the only independent wholesaler in Sweden. The management now intends to use this position in order to expand the market share, especially as pharmaceutical wholesale could also be restructured following the liberalisation of the pharmacy market.

After Phoenix opened up to four pharmacies per week in recent months, the Phoenix brand "Apotek1" is to disappear again from the Swedish market in autumn. The Mannheim-based concern is giving its 32 already opened or planned pharmacies to the market leader Apotek Hjärat (Heart Pharmacy) for an unknown price. Hjärtat, owned by the Swedish private equity company Altor, took on 208 formerly state-owned pharmacies with 1500 employees and a turnover equating to around 690 million euros.

Patrick Hollstein, Fri, May 21, 2010 04:27pm CET