04/23/2024 | Press release | Distributed by Public on 04/23/2024 03:05
Fazer aims to strengthen its positions in all its markets. As a part of its strategy, Fazer is considering consolidating both Baltic bakeries into one production unit in Ogre in Latvia. The investment, including a modern warehouse, new picking processes and renovated production would total EUR 18 million, a significant investment in the Baltic bakery market. Due to this change, Fazer initiates consultations that could lead to the reduction of a maximum of 185 employees in Kaunas.
Fazer Bakery Baltics is considering consolidating all production to one modern bakery in Ogre. Through this transformation Fazer would be able to strengthen its positions in the Baltic markets, ensure competitiveness, widen the product assortment into new categories and be able to further develop export sales. Having one common factory together with an expanded warehouse for frozen and ambient products, new picking processes and modernised production capabilities would also improve Fazer Bakery Baltics´ supply chain efficiency, crucial for all three Baltic markets. The investment would total EUR 18 million, a significant investment in the Baltic bakery market. Today Fazer has bakeries in Kaunas, Lithuania and in Ogre, Latvia.
"Today we have a strong number 2 position on the Lithuanian and Latvian markets and a number 3 position in Estonia and our aim is to strengthen our positions. With one modernised production unit, we will have the opportunity to expand our known brands and product assortments into new categories and to meet different consumer demands even better than before", explains Anne Mere, Managing Director, Bakery Baltics.
The consumption of packed bread products has decreased in the Baltics for several consecutive years and in the last year the bakery market has dropped in volume by 2%*. Consumers have become more price-conscious, and the market is increasingly campaign-driven which has led to price competition and lower margins.
The aim is to strengthen the positions in the Baltics
If the plans were to realise, the transformation of the production would be conducted during the coming autumn-winter period and would be completed by the beginning of 2025.
Fazer Bakery Baltics remains strongly committed to the Lithuanian market. The Lithuanian commercial unit with support functions would continue to operate locally. Partnerships and sales to Lithuanian customers would continue and the company will do its utmost to ensure a smooth transition. All customer deliveries would continue as usual through Lithuanian logistics partners.
Fazer initiates consultations and supports its personnel during the change
These possible changes would have an impact on the personnel. Therefore, Fazer initiates consultations with the work council. The changes would affect a maximum of 185 employees in Kaunas that could lead to the termination of employment. To run new operations in Ogre,Fazer would need to recruit up to 60 additional employees in Latvia.
"If these changes would realise, we would do our utmost to support our employees in Kaunas and help them find new jobs. Vacancies in other Fazer Group units would be offered with priority to those employees whose employment would possibly be terminated. We would collaborate with various partners and local Employment Service" Anne Mere concludes.
* AC Nielsen Jan2024 vs Jan2023 Baltic market volume share dataFor further information please contact:
Joséphine Mickwitz, EVP, Communications & Sustainability, Fazer Group, [email protected], tel. +358 400 784 889
The Fazer media phone line is open Monday-Friday from 8 am to 4 pm,
[email protected], tel. +358 40 668 2998