Fazer Group continues executing its growth strategy and investing in oats expansion by acquiring the Frebaco mill in Sweden.
With the acquisition, Fazer doubles its oats capacity and becomes a significant player in the global export of oats. Having joined forces with Frebaco, the new international Fazer Mills has unique expertise in oats and deep insights into the Nordic consumer.
‘We are continuing our growth strategy and strengthening our position, both in Sweden and in oats. During the past few years, we have already invested 15 million euros in Finnish oats. With this acquisition, Fazer will be a player in the international milling business. Our aim is to grow internationally and export oats from Finland and Sweden to the Central European markets and Asiaʼ, says Christoph Vitzthum , President and CEO of the Fazer Group.
Rapidly growing demand for Nordic oats
With the health and well-being trend, the superfood oats is booming worldwide. Nordic oats are pure, natural and of excellent quality. The demonstrated and EU approved health effects of oats interest consumers.
In response to the increasing demand for oats, Fazer built an oat mill in Lahti, Finland in 2013 and is currently investing in doubling its capacity (2016-2017). With the acquisition of Frebaco in Lidköping, Sweden, Fazer will further double its capacity in oats. The new international mill is a significant player in the global export of oats . Today, over half of Fazer’s net sales from oats come from exports to 30 counties. The recently launched value-added oat ingredients – oat beta-glucan, oat protein and oat oil – are aimed at the global market .
“Oats are an international success story for our milling business. Fazer and Frebaco have both been working with R&D and product development of oats in cooperation with universities and scientists. Now we join forces for an even deeper know-how of this Nordic super grain. We will also enter the retail channel in Sweden with Frebaco’s consumer products”, says Heli Arantola, head of the Fazer Mills business.
Frebaco, with its oat, wheat and rye mills, is located in Lidköping, Sweden. The mill produces high-quality products and healthy Frebaco Kvarn branded organic products: flour and oat products for the food industry as well as muesli, porridge and breakfast cereals for the consumer market. All the grain used in Frebaco’s products is cultivated locally in the Västgötaslätten area.
“Oat-based products are rapidly growing in the food industry and consumer markets. We see Fazer as a new owner that provides the right prerequisites for the further development of Frebaco’s operations”, says Frebaco’s Managing Director Stefan Hollerup.
Source: Fazer
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