Operating environment

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Our three Business Areas—Fazer Bakery, Fazer Confectionery, and Fazer Lifestyle Foods—operate in the bakery, confectionery, non-dairy and plant-based food markets. We are also a major player in the Nordic grain milling market and increasingly in foodtech. Fazer is one of the Nordics largest food companies.

Our businesses

Fazer Bakery

Fazer Bakery crafts tasty and versatile breads as well as delectable, sweet pastries and cakes in packed, frozen, and freshly baked shop-in-shop ranges. Our large bakeries are located in Finland, Sweden, Russia, Lithuania and Latvia, complemented by a network of shop-in-shop bakeries in Finland and Estonia. We sell bakery products to over 20 countries, but have the strongest foothold with local, well-known, and cherished brands such as Oululainen in Finland, Skogaholm in Sweden, Hlebnyi Dom in Russia, and Druva and Gardesis in the Baltics.  The bakery business is characterised by locality, which means that our competitors are often local with the typical bakery market having a few large, nationwide competitors and an array of small and local ones.

Fazer Confectionery

Fazer is the leading confectionery company in Finland with strong market positions in Sweden, the Baltic countries and global travel retail. All confectionery production is located in Finland and products are sold to over 40 countries. The competition in the confectionery business is more focused than in the bakery business, with certain large companies and brands present globally. The Confectionery Business Area also includes Fazer’s retail business, that is our Fazer Cafés in Finland and the Gateau bakery shops in Finland and in Sweden.

Fazer Lifestyle Foods

Fazer Lifestyle Foods is the newest addition to Fazer’s Business Areas. It has its strongest positions in Finland and Sweden and a growing presence in other Nordic countries. The production is located in Finland and Sweden. As the product portfolio of Fazer Lifestyle Foods offers quite a variety, also the competitive landscape is fragmented. Especially within non-dairy there are some large, even global competitors, but the fast development of the non-dairy segment has spurred many companies to explore the growing market.

Our geographical markets

Fazer operates in eight countries with Finland being our largest market, representing over 50% of the net sales (2020). In Finland, Fazer is a leading FMCG brand with a strong foothold in the confectionery and the bakery markets and a growing presence in non-dairy and plant-based foods.

Sweden is Fazer’s second home market. We have high growth ambitions in Sweden, with the aim of further strengthening our position in the bakery business and accelerating growth in the confectionery and non-dairy markets.

In Russia, Fazer is foremost known as a bakery company and in the vast geographical Russian market, we focus on the large cities of Moscow and St. Petersburg, in which our bakeries are also located. In Russia, Fazer is mainly known as a premium brand, with the local brand Hlebnyi Dom focusing on the more competitive price segments. Fazer also sells its popular confectionery products in Russia.

In the Baltics, Fazer is present in the confectionery and bakery businesses, with the main focus in the bakery business.

Fazer exports its popular products to over 40 countries across the world. Confectionery products are our largest export business, but we also export baked goods such as healthy rye bread, trendy arctic thin breads and Karelian rice pasties. We also export specialty ingredients to industrial producers and increasingly products and ingredients originating from our Foodtech business, such as xylitol from oat hulls, which we produce at our state-of-the-art xylitol factory in Lahti.

What we build on

Across its businesses and markets, Fazer creates food experiences based on four competitive advantages. We are a regional FMCG champion, supported by our iconic cross-category brand. Besides the Fazer brand, we have a large portfolio of preferred products and other strong brands, some of them local and others international, consistently working on satisfying evolving consumer tastes, expectations and trends. We build strong and lasting relationships with our customers, which we combine with our direct access to consumers, both by the evolving online channels and our own retail units. And all of that, we build on our people. Empowered and committed people who work for a shared purpose, supported by strongly rooted values, are at the core of everything we do.

Megatrends impacting Fazer’s businesses

The industry, and the entire food system, is experiencing fundamental change. The global climate crisis, the rapid pace of food innovation, the rise of new technologies, and rapidly changing consumer trends are altering how food is produced, distributed, consumed, and perceived. The resulting changes in economic conditions, market developments, consumption trends, and consumer behaviour will all impact our business.

What is driving the change in the food industry

Hungry competitors are intensifying the competition. Foodtech is bringing about new food products that are better for people and the planet. Coming at the world from a different perspective, we expect younger generations to change consumer behaviour overall. We can also see unprecedented investments and innovations throughout the food and beverage value chain. Thus, food products evolve rapidly, even in the short term.

PEOPLE WILL INCREASINGLY SEEK OUT FOOD THAT IS GOOD FOR THEMSELVES, PEOPLE, AND THE PLANET.

Our operating environment is undergoing a fundamental change

The world is undergoing many fundamental movements. Climate change and resource scarcity are two major issues facing the world today. Rapid urbanisation is taking place alongside an ongoing demographic transition. Technology is advancing as political and economic uncertainty are on the rise. For better or worse, these megatrends shape the world we are operating in and impact our business.

The ongoing food transition reinforces trends and creates new expectations

  • Health & Wellbeing. Consumers are growing increasingly more proactive towards their choices and long-term wellness. Advances in foodtech enable the integration of a range of qualities into foods.
  • Experience & Enjoyment. Consumers crave wonder and comfort through pleasures. Experiences will gain greater importance than material possessions, with food playing a pivotal role.
  • Culture of Convenience. Consumers are getting used to new convenient services and products. Comfort in food takes on a broader meaning, including service elements, packaging improvements, and design.
  • Sustainability & Responsibility. Climate anxiety and the demand for sustainable options drive younger generations to radical behaviour, influencing older buyers. People will increasingly seek out food that is good for themselves, people, and the planet.
  • Power of People. Transparency and free flow of information are empowering consumers in a new era of power to the people. Authenticity and local ties are becoming increasingly important in consumer decisions.