Fazer Group: discontinues its dairy business at Koria factory

Helsinki / FI. (fg) The change negotiations concerning Fazer’s dairy operations at the Koria factory have been concluded. As a result, the dairy business will be discontinued by the end of August 2023. In addition, efficiency improvements related to the supply chain will be made, which are inevitable to maintain the company’s competitiveness.

During the change negotiations, Fazer Group evaluated several different options to improve the efficiency of its dairy business and all factory operations in Koria. The company has decided to discontinue the dairy business by the end of August 2023. In addition, Fazer will implement efficiency improvements in the supply chain, which are inevitable to secure the competitiveness in the future. These changes will lead to the termination of 82 employment.

«We will do our utmost to help our employees find new jobs and will support our personnel in several ways. Vacancies in other Fazer Group units will be offered with priority to those employees whose employment will be terminated. We will also liaise with the local employment administration and will support the re-education of our personnel,» says Kati Rajala, Vice President of Fazer’s Non-dairy and Dairy Business.

«We purchase milk from approximately 20 dairy farmers in Southern and South-East Finland. These farms are very well kept and viable, and it seems that each of the farms has a possibility to continue their operations with another dairy,» Rajala continues.

Fazer is a small player in the highly competitive Finnish dairy industry, mainly producing private label products. Due to the low volumes and high complexity in a category driven by scale, being competitive is very challenging for Fazer. The changes that will now take place are part of Fazer Lifestyle Foods’ strategy aiming at leveraging the company´s strengths in oats and increasing the share of plant-based products. The discontinuation of the dairy production will enable the company to focus on the plant-based core business, in which the Koria factory plays an important role also in the future.

Fazer in Koria

  • At its factory in Koria, Fazer produces high-quality, plant-based Fazer Aito oat drinks, cooking products and snacks, all made of Finnish oats. In addition, the factory produces dairy products, mainly for private label brands.
  • The Koria factory is a modern production facility, located close to the city of Kouvola and employs approximately 220 people.
  • Fazer acquired Kaslink in 2019 as part of its strategic aim at becoming a leading producer of plant-based products in Northern Europe. The Koria factory became part of Fazer along with this acquisition.
  • Fazer is a forerunner in oats and continues to invest in the product development and production of oat-based products, in which the Koria factory plays an important role.

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 non-dairy and dairy products, breakfast products, and smoothies. The product range also includes flours, mixes, and ingredient solutions like xylitol for businesses.
  • 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.