Much loved brand Fazer Bakery produces a wide range of baked goods to suit all tastes 

Fazer Bakery is a successful business area of Fazer group. The company has an exceptionally long lineage, as Managing Director of Fazer Bakery Finland, Marko Bergholm, begins: “The Fazer group is a family owned and operated food company, established in 1891. The business originates from Finland, and now has operations across eight countries, including Sweden, Denmark, Norway, the Baltics and Poland. We operate primarily in regions around the Baltic Sea, however our export service is available in over 40 countries. 

“Across the entire group, we achieved a revenue of €1.2 billion last year. We currently employ around 6000 people globally, across three distinct businesses. We have a confectionery business, which provides about 42 percent of our total revenue – this branch of the company primarily manufactures chocolates, candies, and biscuits. We also have a café business, Fazer Retail, which is based in Finland, and a lifestyle foods business area, which makes up around 20 percent of our total revenue. This business manufactures plant-based drinks, gurts, porridge, cereal, and smoothies. 

“Alongside these other two business divisions, we have Fazer Bakery, where I work. This branch of the business contributes 38 percent of the total revenue for each year, making it the second largest division within the group. We have a wide range of baked goods, bread, sweet treats and on-the-go snacks. The bakery business itself is divided into three geographical units. We have operations in Finland, Sweden, and the Baltics. I head up the Finland business, which turns over around €300 million each year.”  

Crafted with care 

Offering everything from classic loaves to gluten-free alternatives, Fazer Bakery has the market covered. As Marko discusses: “Here at Fazer Bakery Finland, we produce many of the same products you can find across our brand in the Baltics and Sweden. That being said, we have the widest coverage in terms of the different categories of product, including bread. We have whole grain bread, white bread, gluten-free options, cakes, and sweets. In addition, many of our products are made ready-to-eat. We have a roughly 25 percent market share, making us a strong player in the Finnish baked goods sector.*  

“Within the bakery business we have two business models. We offer fresh baked goods that are sold through grocery stores, retail outlets, hotels, and restaurants. We also cater to cafeterias in the public sector. To give you an idea of the magnitude of our operation, we deliver directly to 3300 grocery and retail locations in Finland. That’s 150 million bread bags on an annual basis. 

“On top of that, we have something we call shop in shop bakeries. These are smaller, artisanal bakeries, which reside inside larger retail locations. These locations are for what we call ‘scratch baking’. That means our bakers are baking bread from flour and selling fresh baked goods on-site. This side of the business has grown considerably in the last four or five years. It’s a new concept brought to the Finnish market, and customers love it. 

“We currently have 138 of our shop in shops operating across Finland. All the stores are in supermarkets, and for small bakeries they actually offer quite a wide range of goods. It’s a proven concept in the sense that it’s grown consistently and steadily since we launched. As a business, we view these stores as a concept that travels. By that, I mean our Baltic business unit, which is a sort of sister business to the bakery, has also started implementing this model. There are currently 12 locations in operation across the region, with more on the way. We’ve even opened our first two artisanal bakeries in Sweden. 

“The concept was originally developed here in Finland, so we had a head start, but it’s now catching on and becoming part of the wider Fazer Bakery brand. With strong consumer demand, and a whole new market to expand into, it’s a very exciting time.” 

With the artisanal bakery brand taking off across Finland and beyond, Marko ruminates on what’s next for the business: “We have a very consumer-centric strategy, and that will continue. Everything starts with the consumers. At the end of the day, we’re baking products that people enjoy eating. We have an established customer base, and now it’s all about executing our strategy as innovatively as possible. We’re always trying to raise the bar when it comes to quality, in terms of both product and service. Again, that will remain our focus going forward. 

“On top of that, Fazer Bakery will continue to strive for operational excellence. We’re pretty much producing 24/7, so anything we can do to further optimize the process will be on our radar. We’re working with fresh products, which means everything happens on a daily production and delivery schedule – it’s important that we continue to balance this with investments into new products and machinery that will extend our production footprint. Finally, we’ll remain focused on our sustainability goals for 2030, moving away from fossil fuels and operating on 100 percent renewable energy,” he concludes.   

www.fazer.com/about-us/fazer-bakery/ 

 

*NielsenIQ HomeScen 52wks ending 31 December, 2023