Fazer Group: consolidates oat drink production to Sweden

Helsinki / FI. (fg) The change negotiations in Fazer Group’s Plant-Based Drinks business have been concluded. Fazer has decided to consolidate the production of its oat drinks and oat-based cooking products from Koria (FI) to its Tingsryd factory (SE). The transition will occur gradually, with an estimated completion of production in Koria by autumn 2024. In the future, the Koria factory will focus on producing gurts. As a result of the change negotiations, 64 permanent employments will be terminated in Finland.

The slowdown of growth in the consumption of plant-based drinks, as well as increased production capacity in Europe, have made the plant-based drinks business more competitive than before. Consumers are more price-conscious, and the market has become increasingly campaign-driven.

To streamline its operations, to ensure its competitiveness in the plant-based drinks business and to increase focus at both of its factories, Fazer has decided to consolidate the production of its oat drinks and oat-based cooking products from Koria (FI) to its factory in Tingsryd (SE), which has decades of experience and highly efficient processes for the large-scale and cost-effective production of high-quality oat drinks. As a result of the change negotiations, 64 permanent employments will be terminated in Finland.

«We will do our utmost to support our employees and help them find new jobs. Vacancies in other units will be offered with priority to those employees whose employment is terminated. We will collaborate with various partners, such as employment administration, educational institutions, and re-employment coaching partners,» says Kati Rajala, VP, Plant-based drinks, Fazer Lifestyle Foods.

The Koria factory will focus on producing gurts

In the future, Fazer’s factory in Koria will focus on producing gurts. Fazer Aito gurts are plant-based products made by fermenting from oats and can be used similarly to yoghurt. The company aims to start producing gurts also to export markets.

Rajala: «We see good international growth potential for gurts and our Koria factory is well-positioned to respond to this growth due to our highly skilled personnel and the state-of-the-art facility.»

Despite the current slowdown in growth, the consumption of plant-based products is expected to grow in the coming years, and Fazer is strongly committed to the development and production of oat-based and other plant-based products also in the future. Fazer uses high-quality Nordic oats in its products and has unique manufacturing expertise and outstanding ability to innovate new, oat-based products.

About Fazer Lifestyle Foods: Fazer Lifestyle Foods responds to the growing demand for healthy and plant-based food, especially among consumers who follow sustainable lifestyles. It offers modern consumers a variety of plant-based products, such as oat drinks, breakfast products, and smoothies. The product range also includes flours, mixes, and ingredient solutions like xylitol for businesses. Fazer is a forerunner in oats and has made significant investments in the product development and production of oat-based products. Fazer Lifestyle Foods is one of Fazer Group’s three business areas. In 2022, it employed approximately 700 people and net sales totalled EUR 260 million.

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