Fazer’s activities in Sweden consist of bakery, confectionery, cafés and shops and food service businesses.
In 2013, the bakery business focused on improving profitability and growth in a bread market characterised by changing consumer habits and declining demand for packed fresh bread. Even in the face of aggressive campaigning and pricing efforts by competitors, Fazer managed to maintain its strong market position.
The bakery business focused on organisational changes within sales and distribution, improving product quality and implementing the Group’s shared way of working – the Fazer Way in Production – in bakeries. Waste was minimised by efforts to decrease the volume of bread returned by retailers.
Emphasis was also placed on launching novelties, including baked goods featuring Fazer’s strong confectionery brands. One successful example is Marianne Chokladboll, a sweet bakery product that combines the famous Swedish Delicatoboll with the classic Marianne mint chocolates. The bestselling novelty in 2013 was Lingonkusar, a wheat and rye bread incorporating berries and seeds.
“We have had success in strategically using our closeness to Swedish consumers and our good relationship with retailers in introducing new products into the market,” says Christoph Vitzthum, Fazer Group’s President and CEO.
In 2013, the confectionery business concentrated efforts towards improving distribution and reinforcing the position of Karl Fazer tablets. Fazer confectionery outperformed competition by enlarging its share in a stable market, and business grew rapidly due to a strong focus on sales.
Karl Fazer tablets gained a marked increase in sales and the targets were clearly exceeded. Pick & mix sales also grew sharply. The Geisha campaign to support the Pink Ribbon organisation flourished in its fourth year, and the new Geisha chocolate biscuits sold out of stock, far exceeding expectations.
The cafés and shops business also developed its sales and enhanced profitability through efficiency improvements and by closing down unprofitable units. Cafés were given a more modern look and older units were refurbished in line with the new Bistro A concept. Three new Gateau bakery shops were opened and the number of retail sales points increased by 23 units.
Fazer Food Services Sweden strengthens its market position
In the food service business, the main objectives for the year were to improve profitability and maintain growth. The highest emphasis was placed on strengthening the focus on food, creating the best taste, and expanding in areas outside lunch such as catering, takeaway and vending.
In 2013, Fazer Food Services Sweden fully integrated Scandinavian Facility Management AB (SFAB) after acquiring the company in 2012. This development strengthens Fazer’s position in the market and enables its entry into new client segments. Sales increased despite a decline in the food service market in Sweden.
During the year, the organisation successfully piloted the Fazer brand in food service and opened the new restaurant NOGA, a premium lunch restaurant with a taste and cooking studio. Both ventures received positive feedback from guests and other key stakeholders.
“Fazer Food Services Sweden makes systematic efforts to improve quality. During the past years the Swedish team has increased guest and client satisfaction via new ways of working, creating and implementing best practices in cooking methodology, roll-out of common concepts and a true focus on becoming the best in food service delivery,” says Fazer Food Services’ Managing Director, Andreas Berggren.
Fazer Food Services Sweden reached all of its environmental targets for 2013 and continued work on achieving environmental management certification according to the ISO14001 standard. The proportion of organic food served was increased, along with greater use of vegetable ingredients. Nine new KRAV-certified restaurants resulted in the current total of 15.
The company achieved the highest scores on its attention to health and well-being in 2013. Other highlights included Fazer’s chef Vibeke Frisk’s victory in the School Chef of the Year competition.