Finland’s Fazer Group is mulling over the future of its dairy business, potentially putting jobs on the line at a factory in the south-east of the country.
The Koria facility operated by the company’s Lifestyle Foods division employs 226 people. Some 95 permanent positions are expected to be lost if the group goes ahead with the plan to discontinue its presence in dairy. Production at the plant will be focused on oat drinks and oat-based products, what Fazer terms as its core business centred on a plant-based strategy.
Go deeper with GlobalData
Fazer Group, which also has confectionery and bakery arms, said it has spent EUR300m (US$317.2m) on its oat product operations in the past three years to serve its home markets in the Nordic countries.
The company said it is a “small player” in the Finnish dairy industry mainly manufacturing private-label goods. “Due to the low volumes and high complexity in a category driven by scale, being competitive is very challenging for Fazer,” it said in a statement.
Kati Rajala, the vice president of Fazer Group’s non-dairy and dairy business, added: “With our small scale in dairy production, we are uncompetitive and have been challenged even more in the recent inflationary environment. Improving [the] efficiency of our Koria operations is inevitable to secure our competitiveness.”
See Also:
Fazer Group said it is in negotiations with the workers that could lose their jobs, with the discontinuation of the dairy business slated for August this year if the plans materialise.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe Koria factory, inherited through the 2019 acquisition of Kaslink, produces the Aito brand of oat drinks and oat-based snacks and cooking products such as flours and mixes.
Fazer Lifestyle Foods employs around 550 staff and generated sales in 2021 of EUR180m. The group as a whole posted sales of EUR1.14bn in that financial year, an increase of 4%.
Comparable EBITDA was up 2% at EUR127.8m. However, net profit dropped 93% to EUR32m.
