Nov. 2 - Fazer and the Tver bakery OAO Volzhky pekar made a decision in June 2007 about the initiation of strategic co-operation and Fazer purchasing the majority of the bakery's share capital. During this autumn, however, Fazer and Volzhky pekar have both realized that neither party is at the moment prepared to carry out the planned deal. Fazer's target is still to continue growing in Russia both through acquisitions and organic growth.
‘As we already have stated, Volzhky pekar is a very interesting bakery company. In our mutual discussions, however, we haven’t so far been able to find a common view on the direction of Volzhky pekar’s future development. Therefore, both of us see that time is not ripe for the deal, and Fazer will not be purchasing the majority of Volzhky pekar’s share capital at this point. We will continue operative cooperation nevertheless’, says Fazer’s Group President Karsten Slotte.
Fazer is successful in Russia
Fazer is one of Russia’s leading bakery companies. During the past three years, Fazer’s bakery operations in Russia have grown at an average rate of ca 40 per cent annually, and today they constitute 14 per cent of the Group’s turnover. Fazer has during the past ten years invested ca 130 M€ in its operations in Russia and the Group’s four bakeries in Russia employ 3 500 people. In addition, Fazer has since year 2006 operated in the food service business in Russia. The operations were at first were aimed at offering high class food service to international and Scandinavian companies operating in St Petersburg, and they have started off very well. Fazer Amica also opened its first restaurant in St Petersburg in September.
‘According to our strategy, Russia still is one of our main growth areas. Our target is to continue growing both through acquisitions and organic growth, and to double our turnover in five years. We are very pleased with the development,’ stresses Group President Karsten Slotte.
Fazer Group
Fazer Group originates from a family business founded in 1891. Today the Group offers meals, bakery products and confectionery and operates in a total of nine countries. Its operations are based on passion for customer, quality excellence and team spirit. The Group operates in four divisions, which are all committed to offering taste sensations: Fazer Amica, Fazer Bakeries, Candyking and Fazer Russia. Fazer Amica is a leading contract catering company in the Nordic and the Baltic countries, offering customers delicious food and tailor-made service solutions. The company operates in the Nordic countries, Estonia, Latvia and Russia. Fazer Bakeries offers fresh and tasty bakery products and operates in Finland, Sweden, Estonia, Latvia and Lithuania. Candyking is a pioneer and a market leader in the pick & mix confectionery business in the Nordic countries, the United Kingdom and the Baltic states. Fazer Russia, operative since 1 April 2007, is responsible for Fazer’s bakery operations in Russia and is one of the leading bakery companies in Russia. Fazer’s most important associated company is Cloetta Fazer AB, which is the leading confectionery company in the Nordic countries. Fazer Group‘s turnover for 2006 was around one milliard euros. The Group employs ca 15,700 people.