Finland’s Fazer Group has sold its Russian subsidiary to Kolomenskij Bakery and Confectionery for an undisclosed sum.
Fazer follows fellow Finnish food groups Raisio and Valio in selling Russian assets to local buyers.
Bakery-to-confectionery business Fazer said in early March that it would be leaving the Russian market following the invasion of Ukraine.
Fazer said in a statement that all relevant authority approvals have been received for the sale to Moscow-based Kolomenskij.
Christoph Vitzthum, Fazer’s president and CEO, said in March the company saw “no other solution than to exit Russia”.
Following the news of the sale, he said: “I am pleased that we have signed an agreement for the sale of our Russian business. Exiting Russia is a complex process, and now we are one step closer to achieving a complete and controlled exit.”
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Fazer suspended all exports and investments to Russia prior to making its exit plans known in March. Since then, local management has run the operations in Russia independently, it said.
As part of the exit process, the renaming of the Russian subsidiary has been finalised and the use of Fazer as a product brand will end.
In 2021, Fazer’s net sales from Russia totalled approximately EUR157m (US$164.8m), accounting for 13% of the company’s total net sales.
The operations include three bakeries in St. Petersburg and one in Moscow. The company employs 2,300 employees. All Fazer’s employees in Russia will transfer to the new owner.