Snack & Cereal
In its key markets of snack products, Raisio has several strong, locally well-known brands, such as Elovena, Sunnuntai, Provena, Nordic, Honey Monster and Dormen. In 2015, Raisio launched new products and expanded into new product categories. With its healthy, delicious and ecological products, Raisio meets the growing demand for snacks.
Main events in 2015
- EBIT for the Northern Europe was clearly higher than in the comparison period.
Sales clearly increased in Elovena and Provena products.
- New Elovena products sold well.
- In Russia, EBIT was clearly positive.
- The UK improved its performance but EBIT remained negative.
- The whole cereal category showed low sales. Raisio adjusted its production to the market and will close the Southall site.
- The Newport site's production was enhanced.
Net sales for the Snack & Cereal business totalled EUR 138.9 (141.7 in 2014) million. As a whole, EBIT was slightly higher than in the comparison year.
For the Northern European business, EBIT was significantly higher than in the comparison year while net sales remained at the comparison year level. EBIT improvement was driven by retail sales growth of branded products and increased sales of industrial products.
EBIT for the UK operations remained negative, but the loss was clearly lower than in the comparison year. Net sales were almost at the comparison year level. 2015 was a challenging year in many ways as the competition further intensified in the cereal and snack bar markets at the same time as retailers adjusted their operations to the market conditions.
For the Eastern European operations, EBIT remained at the comparison period level and was clearly positive, even though net sales were clearly down. In Russia and Ukraine, product prices were adjusted to exchange rate changes, which decreased sales volume.
Raisio centralising its snack bar production
Sales in cereals made at the Southall site were clearly down from the comparison year. In December, Raisio completed negotiations on the future of its UK-based Southall site. The Southall site production will cease during the end of the first quarter of 2016, resulting in termination of 99 employments. Raisio is assessing alternatives regarding the future of its Southall property near London.
At the beginning of 2016, part of the Southall production will be transferred to Raisio's Newport site while part will be outsourced. Centralising of the snack bar production to the Newport site allows further enhancement of production and more versatile product solutions.
Sales clearly increased in healthy and natural snacks made at the Newport site under partners' brands while demand for weight management bars continued to decline. At the end of 2015, some partners adapted their orders to the market conditions. Newport successfully decreased losses, adjusted its personnel costs to the production volume and further improved its service level.
Popularity of nibbles on the increase
2015 was a good year for the Swindon site manufacturing nibbles. Sales in the Dormen nuts increased as a result of the brand renewal, new products and new listings. Launch of Harvest Cheweee fruit bites opens new opportunities for the conventional children's bar brand and shows the company's ability to launch new products meeting consumer needs.