The production of chocolate cakes and confection began in 1894. Six rooms were rented on Pursimiehenkatu street in Helsinki for this purpose; this is where Finland's industrial confectionery production began. The chocolate masters came from the East since the chocolate making skills of the Russian masters were at the time highly valued, as were those of the Swiss or French. Twelve women and six men worked in the factory, making chocolate products by hand. Also the owner Karl Fazer would take part in the factory's work every day from 6 o'clock in the morning.

The first type of confectionery produced at Fazer's factory was called the "Imperial mix". Another one among the very first products was the Kiss-Kiss caramel. It soon became very popular, and it is for sale even in our days. The demand for confectionery grew, the assortment and operations expanded and in September 1897, Fazer celebrated the opening of the company's new four-storey factory on Tehtaankatu street in Helsinki.

Fazer's products won prizes at international exhibitions, which made it possible to start exports. The first export shipment in 1989, containing so-called "Greek pastilles", was bound for England. The company exported marmalade and chocolate confections to Scandinavia, Germany, Belgium, Holland and England, as well as America, Africa and Australia. The export goods were proudly marked ‘Made in Finland’.

Karl Fazer's basic principle was that what determines the sales of goods is good taste and high quality. Each product needed to get a ‘dress’. Famous artists, such as Akseli Gallen-Kallela, drew pictures for the wrappings. The labels pictured great men, and the packaging was used to make statements. Jean Sibelius was congratulated on his birthday on wrapping paper, and Paavo Nurmi ran in front of the blue-cross flag on top of a tin box for pastilles. Symbolically, blue was an important colour for Karl Fazer. To him, it represented the Finnish nature he was so fond of and, ultimately, his independent native country. The Karl Fazer Milk Chocolate, born from a gift recipe in 1922,  is a cherished product and brand, always sold in .