Fazer builds for future and renews organisation

During the past few years, Fazer has markedly grown and developed, and significant changes have taken place in its corporate structure: the confectionery business has been bought back to Fazer, business has grown through acquisitions and organic growth, and the Pick&Mix concept has been sold. ‘We have invested in growth, the most recent examples being the purchase of Lantmännen Färskbröd in Sweden and sizeable investments in Russia’, says Fazer’s Group President Karsten Slotte.

Business operations will be brought closer to each other

‘I am proud of what Fazer offers consumers today on different markets. We want to continue being a forerunner in creating taste sensations – however, it will require a new operative model’, says Karsten Slotte.

As a result of Fazer’s growth, the Group now consists of four divisions. Three of them – Fazer Bakeries, Fazer Confectionery and Fazer Russia – will be combined into one single bakery and confectionery business area. Fazer Amica will continue in the food service business as a separate business area. Both business areas will aim at leadership in all selected markets. In the new organisation, special attention will be paid to close cooperation between the two business areas.

Doctor of Technology Harri-Pekka Kaukonen (46) has been nominated director of the new bakery and confectionery business area. Kaukonen will continue as Executive Vice President of Fazer Group, and for the time being also as Managing Director of Fazer Russia.

Operations based on focus on the consumer

The reshaping will serve to build an operative model which will make Fazer even more flexible and efficient. It will create a lean organisation by strengthening local units and by diluting organisational boundaries, for example, by centralising functions which serve the entire company and by bringing management closer to practical work.

‘We want to find new ways and places to meet the consumers and to open new forms of cooperation with our customers and other partners. Our strong brands offer us good prerequisites for doing this. For example, in sales, marketing and supply chain management we have very interesting opportunities for development’, says Slotte.

Planned changed may cause redundancies

Creating new operative models and dismantling overlaps in business operations will cause ca 250 redundancies in Fazer Group. Collaboration negotiations in connection with lay-offs will be started in the near future with those personnel groups whom the change will affect.

‘This is unfortunate, and the decision is not an easy one to make. It is the people who make Fazer, and that is why jobs becoming redundant is especially painful. However, we must tear down the framework of the old organisation in order to build a functioning agile company for tomorrow’, says Karsten Slotte.

The possible lay-offs will affect white-collars and upper white-collars. The changes planned now will not cause redundancies for blue-collars at bakeries and confectionery factories, nor Fazer Amica’s restaurant personnel.

The planned changes in operative models and the organisation will both enhance efficiency and provide for significant synergy benefits. The cost savings are expected to be ca 25 million euros by mid-2011.

‘We want to continue being forerunners. We are restructuring now, so we can provide consumers and customers with better service and new concepts in the future’, says Karsten Slotte.