Fazer consolidates oat drink production to its Tingsryd factory in Sweden

The change negotiations in Fazer’s Plant-Based Drinks business have been concluded. Fazer has decided to consolidate the production of its oat drinks and oat-based cooking products from Koria, Finland to its Tingsryd factory in Sweden. The transition will occur gradually, with an estimated completion of production in Koria by autumn 2024. In the future, the Koria factory will focus on producing gurts. As a result of the change negotiations, 64 permanent employments will be terminated in Finland.

The slowdown of growth¹⁾ in the consumption of plant-based drinks, as well as increased production capacity in Europe, have made the plant-based drinks business more competitive than before. Consumers are more price-conscious, and the market has become increasingly campaign-driven.

To streamline its operations, to ensure its competitiveness in the plant-based drinks business and to increase focus at both of its factories, Fazer has decided to consolidate the production of its oat drinks and oat-based cooking products from Koria, Finland to its factory in Tingsryd, Sweden, which has decades of experience and highly efficient processes for the large-scale and cost-effective production of high-quality oat drinks. As a result of the change negotiations, 64 permanent employments will be terminated in Finland.

“We will do our utmost to support our employees and help them find new jobs. Vacancies in other Fazer Group units will be offered with priority to those employees whose employment is terminated. We will collaborate with various partners, such as local employment administration, educational institutions, and re-employment coaching partners,” says Kati Rajala, VP, Plant-based drinks, Fazer Lifestyle Foods.

The Koria factory will focus on producing gurts

In the future, Fazer’s factory in Koria will focus on producing gurts. Fazer Aito gurts are plant-based products made by fermenting from oats and can be used similarly to yoghurt. The company aims to start producing gurts also to export markets.

“We see good international growth potential for gurts and our Koria factory is well-positioned to respond to this growth due to our highly skilled personnel and the state-of-the-art facility", Rajala continues.

Despite the current slowdown in growth, the consumption of plant-based products is expected to grow in the coming years, and Fazer is strongly committed to the development and production of oat-based and other plant-based products also in the future. Fazer uses high-quality Nordic oats in its products and has unique manufacturing expertise and outstanding ability to innovate new, oat-based products.

Fazer Lifestyle Foods

Fazer Lifestyle Foods responds to the growing demand for healthy and plant-based food, especially among consumers who follow sustainable lifestyles. It offers modern consumers a variety of plant-based products, such as oat drinks, breakfast products, and smoothies. The product range also includes flours, mixes, and ingredient solutions like xylitol for businesses. Fazer is a forerunner in oats and has made significant investments in the product development and production of oat-based products. Fazer Lifestyle Foods is one of Fazer Group's three business areas. In 2022, it employed approximately 700 people and net sales totalled EUR 260 million.

Sources:

¹⁾  Nielsen ScanTrack Sweden, Denmark, Norway & Finland, Plant-based drinks, MAT 2YA Growth, Dec 2022, value & volume

Press inquiries:

Anniina Niemistö, VP, Communications & Sustainability, Fazer Lifestyle Foods
anniina.niemisto@fazer.com; +358 40 674 4672  

Images for editorial use: https://fast.fazer.com/l/dWb-vHg9KMhJ

Fazer Group 

Fazer, The Food Experience Company, enables people to enjoy the best moments of their day. Our mission, Food with a purpose, builds on our strong 130-year heritage, consumer first approach and innovations to create the sustainable food solutions of the future. With our dedicated team of approximately 5,000 professionals, we focus on fast-moving consumer goods and our direct-to-consumer business in Northern Europe, and beyond with exports to some 40 different countries. Fazer’s operations comply with its Code of Conduct that is based on the Group’s values and the UN Global Compact. In 2022, Fazer Group had net sales of 1.100 million euros.   

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