For Fazer Mills, 2016 was a success in many ways. Major investments were made, and the business evolved well. Net sales grew despite declining grain prices, thanks to increasing oats and special ingredient exports. An increasing share of higher value segment products as well as successful launches of new products provided added value for customers and consumers, helping Fazer Mills to reach a sound financial result.

Fazer Mills is headed for internationalisation, with increased sales activity in Central Europe and new production capability in Sweden. Oats – the super-food creating considerable buzz in 2016 – are leading the expansion. Fazer first decided to double the oats production capacity of its oat mill in Lahti, Finland, and then re-double it with the acquisition of the Frebaco mill in Lidköping, Sweden. This expansion strengthens Fazer’s position in oats and has already opened the way into the new market.

“Nordic oats are recognised as pure, natural and of excellent quality. Our aim is to continue to grow internationally and export oats from both Sweden and Finland into Central Europe and Asia. We already export oats to 30 countries,” says Heli Arantola, Senior Vice President, Strategy & Renewal and responsible for the Fazer Mills business unit. “Oats are a remarkable international success story for Fazer, with oat-based products rapidly growing in the food industry and consumer markets.”

Fazer Mills have also taken the step from producing ingredients for the food industry to serving the consumers directly. In June, Fazer launched the Fazer Alku Mueslis to continue the successful oats story and the commercial success of the Fazer Alku porridges in Finland. The new Fazer Mills Sweden has been in the consumer market since the founding of the mill in 1981, and Swedish consumers get to enjoy Fazer Alku porridges in spring 2017.

Value-added oats solutions for newproduct categories

In addition to the ingredient itself, Fazer is focusing on value- added solutions, such as oat beta-glucan, oat protein and oat oil, that contribute to the healthiness of various products from drinks to cosmetics. Fazer cooperates with universities and scientists to develop healthy oat-based ingredients that improve consumers’ well-being.

Oats are trending, but Fazer also maintains its strong base of both wheat and rye businesses. Fazer Mills succeeded in sourcing and storing Finnish rye for the entire year 2016 and well into 2017.

Contributing to sustainable farming

Corporate responsibility is integrated in Fazer Mills’ business. The focus is on continuous development supported with more specific programmes: through the Fazer Grain Vision, Fazer Mills aims to be an active contributor to the development of sustainable farming. More information about Fazer’s sustainability development can be found in the Group’s 2016 Corporate Responsibility Review.