Fazer Confectionery enjoyed a strong year in 2015. Sales declined in sugar candies to some extent, but the business developed well in chocolate.
In Sweden and Russia, Fazer Confectionery reached record-high net sales in local currencies in 2015. The confectionery market in Finland is still showing a slight downwards trend, the result of consumers visiting stores less frequently and spending less in general. This affects Fazer Confectionery’s retail customers and makes for a more challenging market environment.
That said, Fazer has made good headway in the chocolate category this year, launching a series of attractive novelties and promotions including the Karl Fazer popcorn tablet, Iso-Pätkis and different varieties of Kismet. The results were aided by the focused work of the entire business area, with marketing and sales both supporting the category.
The business area’s most prominent strategic development of 2015 was in regards to its product portfolio. Early in the year, a roadmap was drawn up to guide marketing and sales focus, allowing Fazer Confectionery to concentrate on those areas with the largest potential for growth.
Sugar candies, wrapped chocolates, and chocolate tablets have been earmarked as vital areas, with the business area’s success in the latter already demonstrating the value of this strategic initiative. Fazer Confectionery also aims to capture its share of the growing opportunity within snacking.
The business area’s organisational capability has also been the topic of strategic development. In particular, digital marketing and packaging are two competences which have been in focus.
A benchmark launch in 2015 reflecting the importance of both of these attributes was that of Fazer Confectionery’s new liquorice range. Here the strengths of a winning package design were made clear, as consumers took to social media to express their enthusiasm for both the product itself and its attractive packaging.
Fazer Confectionery also looks forward to expanding and reinforcing its footprint in the Nordic markets. The business area aims to become the preferred partner to the trade by building a common vision with its key strategic partners in retail. This will take the form of front-end development, utilising shopper know-how to drive mutual value more effectively.
Finally, in terms of the supply chain, the business area is pushing for further efficiency.
‘Fazer for Better Cocoa’
Fazer took significant steps in 2015 to highlight its approach on the sustainable sourcing of raw materials such as cocoa. Cocoa is an important raw material for the company and Fazer is committed to improving the livelihoods of people in cocoa-growing communities.
According to Fazer’s cocoa vision, by 2017 the origin of all the company’s cocoa will be traceable, and all the cocoa it uses will fulfil the criteria of responsible production. In 2015, 72 per cent of all Fazer’s cocoa was purchased through direct sustainability programmes or certification schemes. Fazer supports certified cocoa production by purchasing cocoa through all certification systems: UTZ, Rainforest Alliance and the Fairtrade Sourcing Programme. The company its dealings with the vast majority of cocoa farmers (around 80 per cent) who are outside of these systems, through direct sourcing programmes like Source Trust in Nigeria and Producer Plus in Ecuador.
The value of focus
In Finland, Fazer Confectionery has the most trusted brand, the highest-quality products, a range of reference tastes, and a sales force who have topped customer satisfaction surveys in 2015. The business area’s positive results in the chocolate category prove that such concentrated efforts can lead to an unqualified success story.
Rolf Ladau, Managing Director of Fazer Confectionery, is very pleased with the organisation’s performance. “Against this backdrop of strong existing competences, by focusing our efforts upon winning in our chosen segments, we will ensure continued success.”