Fazer Group, a fast-expanding international business, continues a proud legacy that started from humble beginnings in 1891, when 25-year-old Karl Fazer opened his French-Russian café in central Helsinki. The popularity of his chocolate cakes and confectionery products increased so rapidly that in 1897 he opened the company’s first four-storey factory.
Today, Fazer is very different from that small confectionery maker – the Fazer Group, still owned by the family, is a strong international player with a prominent market position in the Nordics and beyond, employing some 6,000 people at its 14 production sites, and exporting its products to more than 40 countries. “With net sales of €1.2 billion, Fazer is today one of the Nordics largest food companies,” says Tero Tynkkynen, Fazer’s Chief Commercial Officer.
He further explains that over the past years, the company has undergone an important transformation from an iconic Finnish brand to a modern, sustainable ‘Food Experience Company’ with an intensified focus on international market expansion. “From an organisational point of view, this company-wide transformation has entailed moving from a country-based to a category-based way of operating,” he says.
He himself is set to play a major role in the company’s new structure, having been appointed to his position earlier this year in order to steer the newly established Group Commercial Organisation, with the specific task of driving international expansion. “The international focus has increased this year, based on an updated strategy designed to penetrate new markets,” he affirms.
Speaking about Fazer’s impressive market position, Tynkkynen points out that the continued success and growth is the result of the sound legacy and family ownership on one hand, and consistent high quality and understanding of evolving consumer preferences on the other.
The latter factor also pushed ahead the recent transformation to better meet today’s consumers’ demands. “The ongoing food transition and emerging consumer trends are central themes of Fazer’s strategic approach,” he says.
Three pillars
Today, Fazer operates with three business areas – Fazer Confectionery (the largest), Fazer Bakery (the oldest) and Fazer Lifestyle Foods (the newest) with a product portfolio that spans a broad range of categories that include chocolates, candy and biscuits, bread and buns, plant-based drinks and foods, as well as food-tech innovations.
With over 40% of the business, Fazer Confectionery is the largest business. The wide range includes the company’s flagship product – the famous Karl Fazer Milk Chocolate, of which the company produces 13 million bars every year in its Vantaa factory in Finland.
Fazer’s bakery business, as old as the company itself, offers a wide range of baked goods, available in over 20 countries, with a strong foothold in Finland, Sweden, and the Baltics. Fazer is the market leader in the Finnish bakery market and holds the second-largest share in Sweden.
The third category, Fazer Lifestyle Foods, was founded in 2017 and contains plant-based drinks and foods under the Fazer Aito and Fazer Alku brands using Nordic oats and Froosh smoothies containing only fruits and vegetables, with no additives.
Innovations
Tynkkynen affirms that Fazer’s focus on innovation is strong and as categories merge and evolve, the company is ready to capture opportunities early.
Fazer Lifestyle Foods aspires to be a prominent player in the northern European plant-based market, with a portfolio that currently includes plant-based drinks and foods with no added ingredients, as well as porridges, mueslis, and cereals. In addition, several R&D projects are under way, exploring innovations such as cellular agriculture for the future of cocoa, sugar replacement options for candy, and plant-based confectionery fillings.
Tynkkynen explains that as one of the largest oat millers in northern Europe, Fazer is intensively applying its expertise in oats. This is already used in all Fazer’s businesses which, as of 2023, offer more than 200 products made from domestic oats. The oats and oat derivatives are currently exported to more than 40 countries.
Sustainability in food and nutrition is high on Fazer’s agenda. Fazer sees innovation as a key enabler in executing its sustainability strategy and works with universities, researchers, research networks, and start-ups to find ways to contribute to a more sustainable planet.
“We take sustainability management very seriously. We have many different systems in place to ensure that what we do falls in line with our promise to make our business more sustainable,” says Tynkkynen.
Great growth potential
The company embraces cutting-edge technologies, reducing the use of plastic and metal in its packaging and striving to minimize waste and food loss. Reducing carbon emissions in its own operations and in the value chain and minimising food loss are at the top of Fazer’s sustainability agenda. Similarly, the focus is on ensuring as many local suppliers as possible – as such, 70% of Fazer’s supply chain is Nordics-based.
The company is now well positioned to strengthen its position in the home market and to secure leading positions across various categories in other key markets. “We aim to explore untapped European market segments. In the coming months and years, business growth is expected to come from both the conventional products and the Lifestyle range,” says Tynkkynen.
Despite challenging market conditions, increasing commodity prices and putting significant local investment on hold due to the Finnish government’s proposal to increase the VAT on sweets, Fazer continues with its strategic plans, he affirms, remaining positive about the Group’s future.
“Fazer is a vibrant, innovative company with great growth potential and a trusted partner to all stakeholders. I´m happy and proud to be part of a team that makes food with a purpose and creates moments of joy for the world’s consumers.”
