Fazer started to bake bread, at first small-scale at Kluuvikatu. Finnish rye bread became an important part of the company's bakery operations in 1958 when Fazer bought the Oululainen bakery. The large assortment of Oululainen had two special products: their traditional Finnish rye bread and rye crisps. Their popularity has not been shaken by the decades.

At first, Fazer had its own bakery shops in Helsinki. Since 1952, fresh bread has been delivered to retail stores.

Innovations are important to bakery operations. Fazer introduced Finland's first sliced and packed toast to retail in 1966. At that time, toasters became a popular wedding gift for newly-wed couples. Today, a lot of effort goes into the development and research of rye products and ingredients made of rye.