Latest / Family Business Stories with Fexingo: Succession, Legacy, and Multi-Generational Companies / How the Hartmann Family Turned a Norwegian Salmon Farm Into a Global Brand
Transcript
- Lucas: If you've ordered salmon at a nice restaurant in New York or Tokyo over the past decade, there's a decent chance it came from a single family in a Norwegian village of about 400 people. Luna: You're talking about the Hartmanns, right? The family that essentially turned a small fjord farm into a global export machine. Lucas: Exactly. Hartmann Salmon — they're not a household name like some consumer brands, but they're one of the top five salmon producers in the world by volume. And the whole thing started in 1972 when a fisherman named Erik Hartmann decided to try something new. Luna: And before we dive in — because this story is fascinating — I want to mention something. You know how this show stays ad-free and we can dig into stories like this without any commercial interruption? Lucas: Yeah, it's something we're really proud of. And the reason is that a small group of listeners chips in monthly through buy me a coffee dot com slash fexingo. It's literally what funds making this many episodes. If these conversations have been useful to you in some small way, that's where you can keep it going. No pressure, just wanted to pull back the curtain a bit. Luna: Right. And honestly, it means the world that people find enough value to support us. Now back to the Hartmanns — because the way they scaled is really unusual. Lucas: So Erik Hartmann started with a single pen in a fjord near the town of Ålesund. He had a background in fishing, but salmon farming was still experimental in Norway back then. By 1980, he had eight employees and was shipping fresh salmon to Oslo restaurants. Luna: And that's where the first succession moment comes in. His son Lars joined the business in the mid-80s, right when the industry was about to explode. Lucas: Lars brought a more business-minded approach. He convinced his father to take on bank debt to expand — which was a big shift for Erik, who was used to funding everything from cash flow. Lars pushed them from one location to twelve over a decade. Luna: That's the classic second-generation move, right? Professionalising the operation, adding scale. Lucas: Exactly. And it worked. By 2000, Hartmann Salmon was producing 20,000 metric tons annually and exporting to the EU, the US, and Japan. But here's where it gets interesting — Lars also created a unique ownership structure to keep the business in the family. Luna: What did he do? Lucas: He set up a holding company where only direct descendants of Erik could own shares. And those shares can't be sold outside the family — ever. So even as the company grew and needed outside capital for new farms and processing plants, the family retained 100 percent of the voting control. Luna: That's pretty extreme. Most family businesses at that scale end up taking on private equity or listing a minority stake. How did they fund the growth without giving up control? Lucas: They used a combination of retained earnings, bank loans, and — this is key — a cooperative model with local fishermen who supply wild-caught fish for processing. Those fishermen got profit-sharing agreements instead of equity. So the family kept control, but they built a network of aligned partners. Luna: So the village essentially became part of the business ecosystem. That's smart — it also creates local loyalty. Lucas: Exactly. The third generation — Lars's children, Ingrid and Magnus — took over day-to-day management in 2018. Ingrid runs operations, Magnus handles strategy and sustainability. And they're facing challenges their grandfather never imagined. Luna: Climate change is a big one, right? Warmer water temperatures affect salmon health and increase sea lice outbreaks. Lucas: That's the number one operational risk. In 2024, Hartmann lost about eight percent of their harvest to diseases linked to warmer water. They've invested heavily in new technologies — submerged pens that keep fish deeper where water is cooler, and even land-based hatcheries to reduce exposure in the early life stages. Luna: And then there's the feed cost problem. Salmon feed is largely made from fishmeal and fish oil, and those prices have been volatile. Lucas: Right. Feed accounts for roughly 50 percent of a salmon farm's operating costs. Hartmann has been investing in alternative proteins — insect meal and algae-based oils — to reduce dependence on wild-caught fish for feed. They're targeting 30 percent alternative feed by 2028. Luna: That's a big shift. And I imagine the third generation is also thinking about whether to go public or stay private. Lucas: Ingrid has said publicly that they have no plans to IPO. The family values independence and long-term thinking over quarterly earnings pressure. But they do issue bonds to raise capital — they did a $150 million green bond in 2025 to fund their land-based expansion. Luna: So they're accessing public markets but on their own terms. That's a clever middle path. Lucas: And it keeps the ownership structure intact. The bondholders have no voting rights. The family still controls the board. Luna: How is the next generation being prepared? Do Ingrid and Magnus have kids who might take over? Lucas: Ingrid has two teenagers, but she's said she doesn't want to pressure them. The family has a rule — any family member who wants to work in the business must have at least five years of external experience first. So no automatic jobs. Luna: That's smart. It avoids the entitlement problem that sinks so many family firms. Lucas: And they also have a family council that meets quarterly to discuss the business, but also the family's values and philanthropic priorities. They fund a lot of local infrastructure — schools, a health centre, even a cultural centre in Ålesund. Luna: So the business is deeply tied to the community's well-being. That probably makes it easier to retain talent too. Lucas: Absolutely. Their employee turnover is about half the industry average. People stay because they feel part of something bigger than just a salmon farm. Luna: What about the competition? There are other big Norwegian salmon families — like the Mowi group or the Grieg family. How do the Hartmanns differentiate? Lucas: Mowi is actually a publicly traded company now, though it started as a family business. Grieg is still family-controlled but much more diversified — they're into shipping and seafood. Hartmann is laser-focused on premium fresh salmon. They don't do processed products or frozen. They sell whole fish and fillets to high-end distributors and restaurants. Luna: So they're the boutique option at scale. Lucas: Exactly. And that premium positioning lets them command a price premium of about 15 percent over commodity salmon. Their customers — like top sushi chains in Japan — are willing to pay for consistent quality and traceability. Luna: I've read that they use RFID tags on every fish to track its origin from egg to plate. That level of transparency is rare. Lucas: It's part of their brand promise. Lars started that system in the early 2000s, way before it was industry standard. Now it's a key selling point. Luna: So what's the biggest risk for them over the next decade? Lucas: I think it's the land-based salmon farming trend. Several startups are building massive indoor farms near big cities — in the US, in China — which could disrupt the traditional sea-based model. If those technologies become cost-competitive, the Hartmanns' fjord-based advantage could erode. Luna: But they're investing in land-based themselves, right? With that green bond. Lucas: They are. But they're doing it incrementally — one facility at a time — while some competitors are going all-in. The family's conservatism could be a double-edged sword. Luna: It's the classic family business tension: patience versus speed. Lucas: Exactly. And that's the story of the Hartmanns in a nutshell. A third-generation company that has managed to grow from a single pen to a global player without losing its soul — but now faces the hardest test yet: whether that patient, family-first approach can survive in an industry that's changing faster than ever. Luna: It's a good reminder that even successful family businesses are never 'done'. Every generation has to reinvent the model. Lucas: And that's what makes these stories worth telling. Thanks for listening.