The demand for products that enhance health and well-being continues to grow in the bakery business. People seek to balance healthiness with treats and flexible eating habits, and we are responding to these trends.

New and innovative solutions are at the core of sustainable snacking, with ingredients such as vegetables, oats and insects replacing traditional raw materials in the bakery business’ end products. The artisanal trend continues to grow.

We have continued to invest in our offering in new growth areas such as healthy products, developing novelties and driving the bread category further. We have increased our focus on innovation and sustainability in the bakery business. Strengthening our shop-in-shop business has driven the development.

Performance in 2018

2018 was a challenging year for Fazer Bakery in Sweden and Russia. Fazer Bakery grew its market share in the Finland and Baltics, with dark portion bread and artisanal bread, in particular, driving growth in the Finnish market. The shop-in-shop business also continued to grow in Finland.

We launched a number of healthy novelties and snacking products. In Russia, Fazer Veggie bread and Hlebny Dom Hercules Mini won the Innovative product of the year 2018 awards. Our popular Fazer Sirkkaleipä cricket bread, introduced in 2017, won the Bronze Lion in the Sustainable Development Goals section of the Cannes Lions competition, under the category Responsible Consumption and Production, along with several other prizes in Finland. We introduced two hemp breads, originating from Fazer’s internal innovation competition, in our in-store bakeries in Finland.

Fazer’s sustainability approach is being applied to the bakery business. We continued stakeholder dialogue on the implementation of our grain vision and sustainable farming principles in Finland and Sweden. Sustainability was high on the agenda also for food waste where we introduced, for example, in in-store bakeries the Hävikkitalkoot (joint food waste effort) concept, with people being able to buy products made the previous day for an affordable price.

The poor crops resulted in an increase in raw material prices, especially during the second half of the year.

Going forward

We will continue to strengthen our local presence and increase operational efficiency in all our operations. Supporting our growth in artisanal business, we will expand our in-store bakery network and will also pilot the concept outside Finland.

In order to drive our consumer-centric experience, we will invest in an innovation culture to support growth in new areas, aiming to also become a category leader in point of sale excellence. We will also increase agility within the Fazer Bakery business, with a focus on, for example, the go-to-market process and the utilisation of innovations across different countries.