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fazer Group’s Annual Review 2010www.fazer.com

On 17 September 1891, young Karl fazer realised his dream and opened a french-Russian Café at Kluuvikatu 3 in Helsinki. After training in St Petersburg,

Paris and Berlin, he wanted to bring back inter-national taste sensations for Helsinki citizens to enjoy. The café was a success and the fazer bu-siness rapidly expanded to include the producti-on of chocolate and confectionery, and later also bakery products and catering. There was also de-mand for top-quality, delicious products and servi-ces outside finland, so fazer went international by expanding into the other Nordic countries, Russia, and Baltic countries.

This year, fazer will be celebrating its 120th an-niversary and would like to thank all those who’ve contributed to the company’s success: personnel, customers, consumers and partners. Thanks to them, fazer is now a successful global company creating taste sensations in eight countries.

The symbol of fazer’s 120th anniversary is the fazer Rooster. The Rooster, which dates from 1948, is a symbol of tradition, quality and vigilance and was used on products and in marketing up until the 1980s.The rooster used to be a familiar sight on the cover of primers – it lent wings to children learning to read by leaving a tasty reward under their pillows. The Rooster is still around today adorning, for example, fazer’s Sacher cakes.

Let’s celebrate together!

120 years oftaste sensations

3

Contents

120 years of taste sensations . . . . . . . . . . . . . . . 2

Fazer in 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Group President’s review . . . . . . . . . . . . . . . . . . 6

Fazer in brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Fazer in Finland . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Fazer in Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Fazer in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Fazer in the Baltic countries . . . . . . . . . . . . . . .18

Fazer in Norway and Denmark . . . . . . . . . . . 20

Fazer makes me feel good . . . . . . . . . . . . . . . . 21

Corporate Responsibility . . . . . . . . . . . . . . . . . 22

Fazer – a team of experts . . . . . . . . . . . . . . . . . 26

Responsibility is a way of working . . . . . . . . . 27

Closer co-operation through new ways of working . . . . . . . . . . . . 28

The recipe for a long and successful career . . . . . . . . . . . . . . . . . . . . . 29

Low-carbon lunches benefit the environment . . . . . . . . . . . . . . . 30

Fazer meets friends online . . . . . . . . . . . . . . . . 30

A tradition bearer . . . . . . . . . . . . . . . . . . . . . . . . 31

Board of Directors . . . . . . . . . . . . . . . . . . . . . . . 32

Group Management Team . . . . . . . . . . . . . . . . 33

Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

4

Fazer Group and SOS Children’s villages started co-operation in Finland, Sweden and Russia. With the partnership, Fazer wants to support the work of the organization in creating a safe family environment for children and youth.

Fazer got ‘Ogre City Youth Award’ of the year in the company supporting youth initia-tives‘ category in Latvia.

Fazer donated rye bread to the Latvian National team going to the Olympic Games in Vancouver.

Fazer and the Women’s Bank agreed upon co-operation in Finland. Fazer supported the operations of Women’s Bank through a campaign where Fazer employees were challenged to make a donation to Women’s Bank.

Through its fish strategy, Fazer is committed to abiding by WWF’s Seafood Guide.

Fazer’s Must Seemneleib was the best product of the year in Estonia. In the autumn, Must Leib became available in shops in Finland as well.

Fazer launched a new serie of pastilles Xylimax, which is the only pastille sweetened with 100 per cent xylitol.

The packaging of the Fazer Vilpuri bakery products won a Fab Award prize in London in the category of Baking & Sweet Foods.

During Fazer Vilpuri Pikkupaahto campaign, Fazer donated 10 cents for every bread sold to SOS Children’s village in Finland.

Fazer Täisteraviilud was selected the most healthy food product in the wholegrain bread category in Estonia.

Fazer Must leib contin-ues its success in the Baltic Countries by launching novelties: Fazer Mella maize in Latvia and Gardesis Jore with sunflower seeds in Lithuania.

Fazer in Estonia joined the Food Bank which helps the needy.

Hlebny Dom was awarded for the best organization of food services for employees (provided by Amica) by the Federation of Trade Unions of St Petersburg.

• The Group’s turnover rose to 1,513.6

million euros.

• The Group’s operating profit improved

and totalled 58.5 million euros.

• Fazer Food Services’ turnover increased

by 7.3 per cent to 575.1 million euros.

• Fazer Bakeries & Confectionery’s turnover

rose by 3.7 per cent to 938.5 million euros.

• Fazer restructured its organisation. Its

former four divisions were merged into

two business areas: Fazer Bakeries &

Confectionery and Fazer Food Services.

Restructuring sought to improve orga-

nisational efficiency and the company’s

ability to adapt and react more rapidly to

changing environments. This will be achie-

ved by standardising working methods

and taking an even more customer- and

consumer-oriented approach.

• Fazer Amica, the Nordic countries’ leading

catering company, adopted a new name –

Fazer Food Services. Amica was retained

as the sector’s most important consumer

brand.

• Fazer Food Services Finland’s operations

were overhauled in order to ensure

competitiveness and improve profitability.

A new operating model and manage-

ment system were introduced at Amica

restaurants.

• Jouni Grönroos, M.Sc. (Econ), (45) was

appointed Executive Vice President

and CFO of Fazer Group and member

of the Group Management team as of

1 November 2010. His area of responsi-

bility also covers group legal affairs, M&A,

IT, security, investment management,

and strategy process.

• During the autumn, the group mana-

gement moved from Fazer’s Kluuvikatu

office premises in Helsinki to its factory

area in Vantaa.

• In January 2011, a letter of intent was

signed to sell the Baltic catering and

restaurant operations to Fazer Food

Services Latvian management. As part of

the agreement, the production kitchen in

Tallinn will become part of Fazer Food

Services Finland.

• Daniil Briman, M.A., (40) was appointed

General Director of Fazer Group’s

Russian subsidiary Hlebny Dom and

a member of the Fazer Bakeries &

Confectionery Management Team as of

7 February 2011. He reports to Karsten

Slotte, President of Fazer Group.

JANUARY FEBRUARY MARCH APRIL MAY JUNE

Fazer in

5

VAT on restaurant food was decreased from 22 to 13 per cent in Finland. Fazer Food Services transferred it fully to the consumer prices.

Fazer launched a new kind of liquorice sweet in Finland. Pantteri Black Shot has a filling with a twist.

Amica restaurants were among the first in Finland to offer a low-carbon lunch alternative. In planning of the low-carbon meals the focus is on decreasing the carbon footprint.

Fazer presented Aito Oululainen Jälkiuuninappi rye bread.

Fazer’s unique F8 restaurant complex was completed in the heart of Helsinki, when Fazer opened four totally new restaurants in the premises.

Fazer’s Frökusar bread was a nominee in the consumer good of the year competition in Sweden (Årets Dagligvara 2010).

Karl Fazer Milk Choco-late held its position as Finland’s top-rated brand. The Fazer brand came second.

The new Geisha Harmony concept was launched in Finland.

The confectionery classic Marianne got a new autumn dress designed by the internationally known illustrator Sanna Annukka.

Fazer’s Geisha supported the Pink Ribbon campaign against breast cancer by donating a total of 58,000 euros out of the sales of Geisha products in Finland, Sweden and Estonia.

Fazer was the second most ethical company in a study made for Helsingin Sanomat newspaper in Finland.

Fazer’s Café tram rolled in to the streets of Stockholm in Sweden.

A new Durum Toast made out of Durum wheat was launched in Sweden.

Henning Stordal, Fazer Food Services Norway, got the Matomsorgsprisen award for promoting the use of pure ingredients and environmentally friendly operations.

Fazer opened a new café in St Petersburg’s new Stockmann depart-ment store, the second largest department store in the country.

Fazer was once again Finland’s most popular employer among university level business students according to a survey conducted by Universum.

The head office of Fazer Food Services in Kannelmäki, Helsinki was awarded the WWF Green Office designation.

Fazer’s Facebook profile in Finland had more than 101,000 fans by the end of the year.

According to Taloustutkimus, Fazer Food Services was also in 2010 clearly the best known and had the best quality among companies offering staff catering in Finland.

JULY AUGUST SEPTEMBER NOVEMBEROCTOBER DECEMBER

Turnover by countryFazer Food Services

Turnover by countryFazer Group

Personnel by countryFazer Group

Finland 39 %

Russia 24 %

Sweden 20 %

Denmark 6 %

Estonia 5 %

Latvia 3 %

Norway 2 %

Lithuania 1 %

Finland 50 %

Russia 24 %

Sweden 22 %

Estonia 2 %

Latvia 1 %

Lithuania 1 %

Finland 50 %

Sweden 24 %

Russia 15 %

Denmark 5 %

Norway 2 %

Estonia 2 %

Latvia 1 %

Lithuania 1 %

Finland 51 %

Sweden 27 %

Denmark 14 %

Norway 4 %

Estonia 2 %

Latvia 1 %

Russia 1 %

Fazer Food

Services 38 %

Fazer Bakeries

& Confectionery 62 %

Fazer Food

Services 46 %

Fazer Bakeries

& Confectionery 54 %

Personnel bybusiness area

Turnover bybusiness area

Turnover by country Fazer Bakeries & Confectionery

6

was an unstable year

in the world at large.

Although the down-

turn eased off in the summer thanks to

growth and a recovery in consumer demand,

there were already new crises lurking around

the corner. Financial crises in European

countries led to great uncertainty – not

just in the Nordic countries and within the

European Union, but throughout the world.

A rise in the consumption of processed food

and speculation on raw material futures

have also contributed to the rising prices

of, for example, cocoa, sugar and grains.

‘IN LIGHT OF THE CIRCUMSTANCES, we

have every reason to be highly satisfied

with our results,’ says Karsten Slotte,

President of Fazer Group. ‘When we

launched the Fazer for Future programme

last autumn, our goal was to enhance effi-

ciency and improve our ability to adapt to an

increasingly changing environment. We also

wanted to take an even more customer-

and consumer-oriented approach, to

create an efficient and more flexible

organisation, and to introduce standard-

ised working methods. I was pleased by

all the positive developments and success

stories I’ve encountered while visiting Fazer

locations in different countries.’

In 2010, Fazer Group succeeded in

increasing its turnover and significantly

improving profitability. The most favourable

trends were seen in Sweden as a whole.

The confectionery and catering business-

Success stories –past and future2010 was a year full of major changes and great challenges for Fazer.

Putting the new strategy and organisational model into practice were two

of the year’s main targets. Yet in spite of major development projects and

market changes, Fazer achieved its targets and strengthened its position.

7

‘I’m proud to be a part of

the major changes that we’ve so

successfully implemented.’

es were also successful in Finland. Due to

the market situation, Fazer faced its great-

est challenges in the Baltic countries in

particular, but also in Russia.

KARSTEN SLOTTE THINKS that Fazer has

succeeded in adapting its operations to

market demand and has achieved its tar-

gets with the aid of its development pro-

grammes. He would like to acknowledge

the firm commitment shown by Fazer per-

sonnel and the extremely hard work they

have done, even in difficult circumstances.

‘I’M PROUD to be a part of the ma-

jor changes that we’ve so success-

fully implemented. A good example

is Fazer Food Services Sweden,

which is once again a profitable

unit. And the merger of the Skogaholm

brand and its fresh bread production into

Fazer’s bakery business in Sweden suc-

ceeded over and above our expectations.

We’re number two in the Swedish mar-

ket and have launched a winner, Frökusar

portion bread, which quickly became a hit

in Sweden. In Moscow – one of the world’s

metropolises and home to 11 million

people – we are currently the second largest

baker with a 13 per cent share of the market.

We’ve also succeeded in strengthening our

position in Nordic country confectionery

markets,’ says Karsten Slotte.

Strong brands and a leading posi-

tion have helped Fazer to succeed during

challenging times. Retaining customer and

consumer loyalty and treasuring our suc-

cessful brands will also be vital in the future.

‘FAZER’S GROWTH will increasingly come

from international markets and new

product concepts. In order to strengthen

its position, Fazer must harness its strong

brands in new ways. Our customers’ loyalty

is based on the Fazer promise – first-class

products and services,’ says Karsten Slotte.

Karsten Slotte also sees changes in

customers’ needs and expectations. ‘Con-

solidation in trade, changes in distribution

channels and the increased importance of

price mean that we must have the capacity

to overhaul and develop our operations.

We must also be able to make an unbiased

appraisal of our offering and adapt it to meet

customers’ and consumers’ expectations.’

CONSUMERS’ LIFESTYLES have also changed,

which is reflected in their eating habits

and use of Fazer’s products and services.

Consumers want products to be portable

and readily available, but also healthy and

environmentally friendly. The significance

of price has also changed. On weekdays,

consumers seek a good price-quality ratio,

but are prepared to spend more on high-

quality, specialised products at weekends.

IN LINE WITH ITS STRATEGY, Fazer intends

to grow profitability using its leading brands,

and to be the industry’s most desirable

employer and its stakeholders’ first choice.

Karsten Slotte stresses that Fazer will

continue to develop its operations. Fazer

will be seeking continual improvements

to bakery and confectionery produc-

tion, restaurants and sales with the aid

of its ongoing development projects.

He believes that even the smallest of

everyday improvements can enhance

efficiency, improve cooperation and

thereby also increase profitability

and job satisfaction.

‘Although we’ve succeeded in our

efforts, we can’t tread water. As the

market leader, we must continually

seek to improve and outdo ourselves

– that’s how we’ll create the success stories

of the future.’

KARSTEN SLOTTE LISTS the main challenges

of 2011 as managing price and cost

pressures caused by the rising prices of raw

materials, and the impact of the sweets tax

on business in Finland.

Fazer will be celebrating its 120th anni-

versary this year. The company has a unique

history and years of success behind it.

‘I’m convinced that Fazer will continue

along this successful path and I would like

to thank everyone at Fazer, our partners

and our committed shareholders for our

achievements. This year, we have good

reason to celebrate together.’

‘In light of the circumstances,

we have every reason to be highly

satisfied with our results.’

8

The origins of Fazer Group lie in a family company founded in 1891

when Karl Fazer opened his first café in Helsinki. Today Fazer offers meals

and bakery and confectionery products, and operates in eight countries.

Fazer in brief

Fazer is Finland’s leading confectionery

company and a strong player

in the Baltic Sea region.

azer Group’s operations are based

on passion for customer, quality

excellence and team spirit.

Fazer Group has two busi-

ness areas, Fazer Food Services

and Fazer Bakeries & Confectionery, which

are committed to creating taste sensations.

Fazer Group’s turnover was 1,513.6

million euros in 2010. The number of em-

ployees was 16,573 at the end of the year.

FAZER FOOD SERVICES

Fazer Food Services is the leading contract

catering company in the Nordic countries,

offering customers delicious food and

tailor-made service solutions. Fazer Food

Services has almost 1,200 restaurants in

Finland, Sweden, Norway, Denmark and

Russia. Services include private and public

sector personnel restaurants, student

restaurants, café-restaurants, restaurants at

conference and meeting venues as well as

food services for schools and public service

organisations. Fazer Food Services offers

also catering services for special occasions

for its customers. Fazer Food Services’

brands are Karl Fazer, Fazer, Amica and Wip,

among others.

FAZER BAKERIES & CONFECTIONERY

Fazer is Finland’s leading and Sweden’s

second largest bakery company and one

of the leading ones in the Baltic region and

Russia. Bread and pastries are manufactured

in Finland, Sweden, Estonia, Latvia, Lithuania

and Russia. Fazer has a total of 21 bakeries.

The brands, in addition to Fazer, are

Oululainen, Skogaholm, Hlebny Dom,

Druva and Gardesis. Bakery products are

exported to over 15 countries.

Fazer Mill & Mixes in Lahti, Finland, is not

only a supplier of raw materials to bakeries

but also a raw material management,

research and development centre. Most of

the production of Fazer Mill & Mixes is sold

to customers outside Fazer Group.

Fazer is Finland’s leading confectionery

company and a strong player in the Baltic

Sea region. Fazer’s three confectionery

factories are located in Finland: in

Vantaa (chocolate), Lappeenranta (sugar

confectionery) and Karkkila (chewing

gum). Fazer has many strong international

confectionery brands, for instance Karl Fazer,

Geisha, Dumle, Tutti Frutti, Marianne, Tyrkisk

Peber, Pantteri and Xylimax. Confectionery

products are exported to 27 countries.

F

9

800

700

600

500

400

2006 2007 2008 2009 2010

25

20

15

10

5

0

600

500

400

300

200

100

0

2006 2007 2008 2009 2010

25

20

15

10

5

0

140

120

100

80

60

40

20

0

2006 2007 2008 2009 2010

140120100806040200

-20

2006 2007 2008 2009 2010

200180160140120100806040200

2006 2007 2008 2009 2010

70

60

50

40

30

20

10

0

2006 2007 2008 2009 2010

1200

1000

800

600

400

200

0

2006 2007 2008 2009 2010

488.2 438.8 780.1 729.3 720.9

422.1 421.7 510.3 511.0 533.7

9.2 12.1 23.2 6.1 9.0

6.7 6.9 19.9 2.9 7.3

Turnover Operating profitCash flows from operating activities

Capital employedand profitabilityGearing

Shareholder’s equityand return on equity

Capital employed Return on investment (ROI)

Shareholder’s equity incl. minority interest Return on equity (ROE)

82.6 54.7 18.3 118.0 117.7

Non-recurring items Operating profit without

non-recurring items

40.7 51.2 135.0 44.5 58.5

1.6 11.6 90.4 0.1 39.1 39.6 44.6 45.5 58.4

-1.0

Gross investments Interest-bearing net debt Equity ratio

Capital structure

Creditors Shareholder’s equity incl.

minority interest

58.0 78.3 182.4 168.8 70.0 64 64 47 53 54

422.1 421.7 510.3 511.0 533.7

239.1 232.2 566.9 455.9 448.1

200

160

120

80

40

0

-40

-80

2006 2007 2008 2009 2010

35302520151050

-5-10-15

2006 2007 2008 2009 2010

-3 -13 21 30 21

-14.4 -55.0 107.4 155.3 110.5

2006 2007 2008 2009 2010

1600

1400

1200

1000

800

600

400

200

0 1068.7 1192.6 1159.7 1441.1 1513.6

Fazer Confectionery Fazer Bakeries Fazer Food Services

10

Innovation – the road to growth and competitivenessTop-quality bakery products, confectionery and catering services – first-

class taste sensations – are bought every day. Fazer meets customers’ and

consumers’ needs by launching delicious products and innovative services.

Fazer’s mission is to create taste sensations.

ustomers’ needs and expec-

tations change, and consum-

ers want new kinds of prod-

ucts. Consumption habits

have changed and consum-

ers expect innovations that will meet their

changing needs. Today’s more mobile life-

style also affects eating habits – products

must be portable and readily available. An

increasing number of consumers also want

products that are healthy, environmental-

ly friendly and responsibly produced. The

competitive environment has also changed,

so Fazer must have the capacity to overhaul

and develop its operations. Fazer’s vision is to be the best choice.

Fazer’s strategy is to grow its busi-

ness profitably using its leading brands,

and to be the industry’s most desir-

able employer and its stakeholders’

first choice.

Fazer’s vision reflects the guaran-

teed top quality of its products and services,

as well as Fazer’s pioneering status in creat-

ing delicious, innovative products. Commit-

ted experts, working together to achieve

the shared goals, are what make Fazer’s suc-

cess possible. Openness based on trust and

genuine dialogue with stakeholders are an

integral aspect of Fazer’s corporate culture.

Fazer wants to bolster its position in

its main markets by harnessing its strong

brands. Fazer’s growth will increasingly

come from international markets and new

product concepts. That is why Fazer will be

paying even closer attention to brand and

concept positioning in different segments

and market areas.

MISSION AND VALUES GUIDE DAILY WORK

Successful products are a means of realising

a mission, and values are the basis of all

activities. Fazer’s values are: passion for

customer, quality excellence and team spirit.

Passion for customer means that Fazer

wants to exceed its customers’ expecta-

tions. This is the springboard for all product

and service development. Every encounter

with one of Fazer’s products or services

should strengthen Fazer’s brand.

Quality excellence is part of all Fazer’s

operations: every product, service, process

and customer encounter should be of the

highest quality. And when it comes to qual-

ity, a delicious flavour is the crucial criterion.

Consumers must get their money’s worth

when purchasing a Fazer product or service.

At Fazer, cooperation is a way of showing

respect for others, learning together and

sharing best practices across unit and country

borders. Smooth cooperation will engender

trust in customers and enable the achieve-

ment of shared goals.

NEW OPERATING MODEL HELPS TO ACHIEVE GOALS

Fazer has renewed its operations with the

aid of the Fazer for Future programme.

Its core objectives are to take an even

more customer- and consumer-oriented

approach, to create an efficient and flexible

organisation, and to implement standardised

working methods in all countries.

These changes have strengthened Fazer’s

result in many countries and business units.

Fazer is seeking further improvements in

production, restaurants and sales through

a variety of development projects. You

can read more about these projects on

page 28.

BRANDS ARE THE HEART OF FAZER’S BUSINESS

Karl Fazer Milk Chocolate and Fazer are

Finland’s most esteemed brands. Fazer

is also a strong brand in the company’s

other market areas. The Group has

several other strong, respected brands,

such as Karl Fazer, Geisha and Dumle, as

well as the local bakery brands Hlebny

Dom in Russia and Skogaholm in

Sweden. Amica and Wip are the leading

brands in their field in the catering category.

Strong brands are at the heart of Fazer’s

business strategy.

In 2010, Fazer updated its brand strategy

to strengthen the position of its brands

in different market areas and to manage

them in a coherent way. The brand strategy

ensures that the brands and concepts are

correctly positioned in each market area.

This supports each brand’s goals.

Coherent brand management seeks

to ensure that consumers always recognise

Fazer’s brands. Every Fazer product and

service should meet consumers’ desires

and expectations.

‘Successful products are a means

of realising a mission, and values

are the basis of all activities.’

C

11

‘Fazer’s strategy is to grow its

business profitably using its

leading brands.’

12

Fazer retained its leading market position in Finland in spite of a challenging

start to the year. Fazer met its profit targets in confectionery and catering,

but the bakery business suffered from the effects of industrial action in the

food and drink industry during spring 2010.

Fazer still the market leader in Finland

Fazer’s bakery business succeeded in retain-

ing its market leading position in Finland.

Industrial action in the food and drink

industry and declining daily bread consump-

tion had an impact on the bakery business.

However, thanks to successful saving meas-

ures and a good cost structure, the result of

Fazer Bakeries Finland fell only slightly short

of the target.

New products are also challenging

bread’s traditional place on the dining

table. Ready-made, easy-to-prepare

meals and snacks have grown in

popularity. Fazer has risen to meet this

change in consumer habits with Fazer

Karelian Pies, and their substantial rise in

sales has continued.

LOCAL BAKERIES ON THE RISE

Local bakeries offering super-fresh bread

that is baked on the premises continue to

go from strength to strength. Fazer opened

three new local bakeries in Finland, bringing

the nationwide total up to 25.

‘Our target is to continue the growth in

our local bakery operations. In addition to

freshly baked products, regional specialities

that are firmly rooted in local traditions are

also gaining in popularity. The demand for

local bakery products has grown due to the

ongoing active local food discussion’, says

Managing Director of Fazer Bakeries Finland

Petri Kujala.Fazer successfully launched several new

products during the year: Aito Oululainen

Jälkiuuninappi, Fazer Alku triangle buns, Fazer

Rye meat pies and Fazer Vilpuri Pikkuruis

(little rye rolls) – the first rye bread to be

aimed at children.

During 2010, Fazer also successfully

introduced SAP at all Finnish bakeries. SAP

provides the company with a better over-

view of the business and enables more

accurate forecasts. Changes in the order-

delivery process are also visible in real time.

Delivery reliability remained at over 99 per

cent throughout the changeover.

Fazer’s goals for the coming year are to

achieve a recovery in bread consumption,

to take an even more customer-oriented

approach and to further strengthen its

market position. Fazer will also be investing

in improvements to many aspects of product

quality, such as sensory quality tests, measur-

ing consumers’ experiences of quality and

making continual improvements to the

quality of production processes.

PROFITABLE CONFECTIONERY SALES

Fazer Confectionery had an excellent

year in terms of sales. Fazer’s strong, highly

esteemed brands and successful product

launches fuelled this success.

Fazer Confectionery’s earnings

trends exceeded expectations in 2010.

Fazer succeeded in bolstering its market

share in Finland’s confectionery market,

and operations remained profitable even

though raw material prices have stayed

at a record high. Successful measures

for improving efficiency also contributed to

profitability. The high prices of raw materials

put pressure to increase prices.

In terms of sales, the most notable

product launches of 2010 were Ässä Hässäkkä

bagged sweets, Karl Fazer Cashew and the

Geisha Harmony concept. In terms of growth,

the most significant product groups were

bagged sweets and Christmas chocolate

boxes. Fazer is also experiencing favourable

growth in some of the expert markets.

GROWTH AND OPERATIONAL DEVELOPMENT

Fazer is seeking growth in key export

markets: travel trade, Sweden, Norway,

‘Fazer’s strong, highly esteemed

brands and successful product

launches fuelled this success.’

The new Geisha Harmony

concept was launched in Finland.

AitoOululainen Jälkiuuninappi is true gourmet.

Fazer’s restaurant world F8 in the centre of Helsinki was finalised.

13

”Fazer Food Services intends

to retain its leading position

as the best and the best-

known company in the

Finnish catering industry.”

Denmark and Russia. Innovative products

and new packaging options continue to

drive growth.

‘Preparations for the sweets tax were

discussed throughout the autumn, but it

is still too early to forecast its impact on

product categories and the confectionery

market as a whole. Fazer is facing a challenge

in its vital home market,’ says Tom Lindblad,

Managing Director of Fazer Confectionery.

Fazer updated its cocoa sourcing

strategy in early 2010. In line with this

strategy, Fazer will continue its systematic

efforts to promote responsible cocoa

sourcing. In 2010, Fazer acquired the

first batches of certified cocoa. Fazer

is committed to increasing its purchase

volumes of responsibly produced cocoa

by 10–15 per cent per annum, depending

on availability and the market situation.

By 2017, Fazer aims to buy only cocoa

that fulfils the criteria of responsible

production.

Fazer invested in a new confectionery

line at the sugar confectionery factory

in Lappeenranta. The new line enables

the company to introduce brand-new

technology for producing filled and

layered confectionery. The production of

Avec Pastilles and American Pastilles was

transferred away from Sweden and back

to Lappeenranta. Operations at the Karkkila

chewing gum factory performed according

to expectations.

Fazer’s major challenges in 2011 will be

to implement its substantial organisational

restructuring programme while ensuring

the well-being of the personnel amidst

these changes.

FAZER FOOD SERVICES IMPROVES ITS RESULT

Fazer Food Services met its financial targets

and retained its position as Finland’s leading

catering company. As in previous years,

customer satisfaction and brand recognition

remained high.

The impact of the 2009 recession was

felt considerably in the catering business

in early 2010. However, by the autumn, a

recovery in restaurant sales and increased

demand for conference and hospitality

services indicated that consumers and

corporate clients had begun to regain

their confidence in the economy. A

reduction in VAT on restaurant food in

July also contributed to sales growth. Fazer

transferred the entire reduction – from

22 to 13 per cent – to VAT-inclusive retail

prices at all Amica and Fazer restaurants.

‘Competition remains tough. Our

customers are meticulous when seeking

Highlights 2010 • An excellent result in the confectionery business.• An improved result in Fazer Food Service.

Goals for 2011• Profitable growth in all business areas and an improved result in the bakery business.• Creating targets and KPIs for all areas of corporate responsibility.

Personnel 6,476

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0 564 783 761

HISTORY

Fazer was the first company in Finland to industrially manufacture sweets, chocolate and confectionery products. The French- Russian café opened by Karl Fazer in 1891 at Kluuvikatu in Helsinki, Finland is the home for today’s products, such as confectionery and bakery products, as well as café and restaurant operations.

Many of Fazer’s oldest confectionery prod-ucts are still being manufactured. The oldest product still in production is the Pihlaja marmalade, which was launched in 1895.

Fazer began exporting products already in the late 19th century. Marmalade and chocolate pralines were exported to Scandinavia, Germany, Belgium, Holland and England.

The share of bread grew in 1958 when Fazer bought the Oululainen bakery. Since then, Fazer has expanded its bakery operations and is now Finland’s leading bakery company. The restaurant operations started in 1935, when Fazer bought the traditional Kalastajatorppa restaurant. Fazer Catering (currently Fazer Food Services) was established in 1976.

bids for contract catering services, which

means we have to continually develop our

operations and boost efficiency,’ says Jaana Korhola, Managing Director of Fazer Food

Services Finland.

New business opportunities are

opening up in municipal services. This can

be seen in the brisk growth of Fazer Food

Services’ wholly owned subsidiary Blue

Service Partners, a multiservice company

that specialises in nursing and municipal

services.

Fazer Food Services intends to retain its

leading position as the best and the best-

known company in the Finnish catering

industry. ‘We will continue to focus on

well-being and environmental issues. And

we’re continually improving our recipes, so

that we can always meet our customers’

day-to-day expectations,’ says Jaana Korhola.

FAZER IN FINLAND

14

In 2010, Fazer succeeded in improving the results of both business areas in

Sweden. Economic growth led to an increase in consumption, which also fuelled

demand for bakery products, confectionery and contract catering services.

Fazer succeeds in Sweden

Fazer’s bakery operations grew profitably

in Sweden during 2010.

Fazer was the only major company in

the industry that managed to grow in a

falling market. Fazer retained its position as

Sweden’s second largest bakery company.

As expected, the merger of Lantmännen

Färskbröd AB and Fazer’s operations went

extremely well and generated positive

results.

‘It’s great that we were able to merge

Fazer and Lantmännen Färskbröd AB’s fresh

bread production so quickly in 2010. We’ve

succeeded in creating a new, profitable

bakery business that will grow and create

added value to the bread market,’ says

Per Sandberg, Managing Director of Fazer

Bakeries & Confectionery Sweden.

The Swedish bakery industry is

extremely competitive and the market

is falling. In-store baked fresh bread is

challenging the traditional bakeries, and

fluctuations in raw material prices are

posing challenges for pricing. This has also

forced Fazer to re-evaluate and cut back

on its product range. Fazer is now focusing

on larger-volume, more profitable products.

CHANGES LEAD TO SUCCESS

After the merger of the bakery operations,

Fazer has been focusing on increasing sales

and improving profitability. Production has

been centred on five locations, which has

increased bakeries’ production volumes.

A new sales and distribution organi-

sation was established during the year,

and the product flow from bakeries to

customers was also overhauled. This

improved volumes and efficiency. In order

to further enhance efficiency, quality and

delivery reliability, Fazer launched the Fazer

Way in Production programme aimed

at continuous development. In order to

improve quality, Fazer invested in a new

and efficient dispenser for the Eskilstuna

bakery.

R&D HOLDS A KEY POSITION

Swedish consumers are increasingly

interested in the effect diet has on health

and well-being. The origin of products and

environmental impact of production are

also important.

‘Fazer seeks to develop innovative new

products that meet consumers’ expectations

of a good, healthy diet,’ says Per Sandberg.

Thanks to its new R&D organisation,

Fazer launched several successful new

products. Fazer’s Frökusar portion bread

became Sweden’s second most popular

portion bread, and its production will soon

start in Finland and Russia, too. Frökusar

was also nominated in Sweden’s Årets

dagligvara competition (Convenience Goods

of the Year), which gives awards to the most

successful new products of the year.

Fazer’s targets for its bakery operations

in Sweden are profitable growth, continual

developments in production, further

product quality improvement and increased

efficiency. Other focal areas include sales

and distribution and personnel competence

development.

CHOCOLATE FUELS CONFECTIONERY SALES GROWTH

Fazer’s confectionery business grew in

accordance with targets, increasing its

market share and improving profitability.

The total retail market for confectionery

grew by ca four per cent in 2010, while

Fazer Confectionery grew by seven per

cent. Growth in sales of chocolate products

in particular had a favourable impact on the

result. Although Fazer increased its market

share, sales volumes remained at the same

level as in 2009.

‘During 2010, we achieved one of the

most important goals of buying back the

confectionery business by strengthening

our position in Sweden,’ says Per Sandberg.

Fazer is the fourth largest company in

Sweden’s confectionery market and a strong

challenger. A strong focus on chocolate

products bore fruit in Sweden. Improved

visibility in stores, proactive promotions and

raising consumers’ awareness of the fresh

milk used in production increased both sales

and recognition of Karl Fazer Milk Chocolate

products in Sweden. Successful launches of

new confectionery products combined with

a careful re-evaluation of the existing range

improved profitability.

Fazer organised for the first time

an Amateur Pastry Chef of The Year

HISTORY

Sweden has been Fazer’s second home market for a long time. Fazer started the exports of marmalade and confec-tionery to Sweden in the beginning of the 20th century. Karl Fazer opened his first shop in Stockholm in 1920. In 1975, Fazer purchased the chocolate factory Mazetti in Malmö, and this is when Dumle sweets were introduced into Fazer’s assortment.

Fazer’s bakery operations in Sweden started in 1982 when Fazer established a company by the name Fazer Bröd AB in Lidköping. Bakery operations have grown through acquisitions, the latest of which took place in 2009 when Fazer bought the Lantmännen Färskbröd AB bakery company.

Fazer Frökusar is Sweden’s second most popular portion bread.

Ögon got home bakers to compete in Sweden.

15

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competition, which was highly visible. Fazer

also took part in the Pink Ribbon campaign.

Fazer updated its confectionery sales

steering to better support volume

development. The confectionery business

benefited from the merger of Fazer’s

bakery and confectionery operations, which

resulted in more efficient functions and

distribution channels and reduced costs. The

confectionery business aims to increase its

sales volumes, improve its market position

and continue to grow profitably.

CATERING SERVICES TAKE OFF

The improved financial position of Fazer’s

customer companies fuelled strong growth

in contract catering services in Sweden in

particular. Fazer Food Services, the second

largest company in the industry, got back

on the growth track by increasing both its

turnover and sales volumes after the 2009

recession.

2010 was an extremely successful year

for Fazer’s catering business in Sweden;

it acquired notable new customers and

succeeded in tendering, retaining and

developing important existing customers.

The economic upswing increased demand

for hospitality services, especially towards

the end of 2010. Fazer Konferens, which

provides conference and hotel services,

took slightly longer to recover from the

recession.

‘During the year, we’ve been honing

our concepts, and have focused on further

developing our most important product –

taste sensations. The most significant means

for achieving this have been expanding

personnel competence, introducing new

ways of working and creating smooth

and productive cooperation,’ says Gunilla Rittgård, Managing Director of Fazer Food

Services Sweden.

Fazer Food Services’ own new cook-

book has been a key tool in enhancing

restaurant personnel’s skills. The cookbook

contains the personnel’s own recipes and

guidelines for creating taste sensations. The

cookbook is being put together by the

Fazer Culinary Professionals, a team of ten

chefs who’ve been chosen from among

Fazer’s top experts.

ENVIRONMENTAL ISSUES ARE CENTRAL

In recent years, Swedish consumers have

become increasingly interested in the

origin of food, environmental friendliness,

and organic and local food. Customers,

especially schools, expect that the food

is healthy, prepared in situ to as great an

extent as possible, and that the catering

service provider bears responsibility for

the food supply chain.

‘We have put a lot of effort into

promoting responsible and environmentally

friendly sourcing. We have, for example,

committed to complying with the guidelines

of the WWF in our fish procurements. By

improving the logistics of our raw material

sourcing, we’ve also been able to reduce

transportation – which not only benefits

the environment, but also saves on costs,’

Gunilla Rittgård explains.

Fazer Food Services has received ISO

14001 environmental certification for a

total of 57 of its restaurants in Sweden.

The certificate forms part of Fazer’s

comprehensive environmental efforts, and

Fazer aims to obtain certification for all of

its 300 Amica restaurants and conference

premises by the end of 2012.

Continued profitable growth will

require Fazer to firmly establish its new,

standardised working methods in the

day-to-day running of all restaurants, while

also seeking continual improvements. Fazer

Food Services intends to continue its efforts

to create taste sensations, improve sales and

find new business opportunities.

Goals for 2011• Profitable growth in catering services.• Long-term work for increased profitability in bakery operations.• To develop the operations and assortment of the new confectionery organisation.• To implement the Fazer Way in Production project in bakery operations.• To complete the environmental programme and obtain ISO 14001 certification for restaurants.

Highlights 2010 • Increased profitability in all business units.• Excellent sales growth in contract catering services.• The successful merger of Fazer and Lantmännen Färskbröd AB’s operations and the bakery and confectionery operations.• A stronger market position in the bakery and confectionery business.

Personnel 3,429

‘We have put a lot of effort into

promoting responsible and

environmentally friendly sourcing.’

FAZER IN SWEDEN

16

The tail end of the global financial crisis clouded the start of 2010 in Russia.

Waning consumption was evident both in the bakery and confectionery

business and in demand for catering services.

Fazer continues to grow in Russia

Consumers’ purchasing power began to

recover after the first quarter and there

was an upswing in the Russian economy.

The strengthening of the rouble during

2010 had a favourable impact on Fazer’s

profitability compared to 2009.

‘Although price has no longer been such

a powerful factor in consumers’ decisions,

there has been lively debate in Russia about

inflation and the rising prices of bread and

basic groceries,’ says Hlebny Dom’s General

Director Krister Friberg. An exceptionally dry summer led to a

weak grain harvest in Russia, which raised

the price of wheat in particular and placed

price pressures on the retail trade. In order

to curb the rising price of bread, Russia

placed a ban on grain exports until the

end of 2010.

‘The lengthy late-summer heat wave,

combined with smoke spreading from

forest fires, made people want to get

out of Moscow. This caused a collapse in

consumption and demand at the same

time as the rising price of key raw materials

was weakening profitability,’ Krister Friberg

explains.

Competition in traditional bread

segments remained tough, and price levels

in the cheaper bread segments in posed

challenges.

NEW PRODUCTS INCREASE SALES

In spite of this challenging operating envi-

ronment, Fazer once again succeeded in

increasing its market share in both fresh

bread and frozen products in Moscow,

where Fazer holds a solid position. Fazer

also retained its leading position in the

St Petersburg area. Every day, Fazer supplies

over 1.5 million consumer packages all over

Russia. Success has been fuelled by strong

brands – Hlebny Dom and Fazer – and

successful product launches.

Increased deliveries and a sales boost

from new products generated growth

in the Moscow area. Many new prod-

ucts soon became consumer favourites,

including English breakfast (a functional toast

bread), new fresh flavours in the berry pie

range, and a traditional rye bread launched

for Russians.

Fazer’s goal in the Russian fresh bread

market is to grow and to once again sig-

nificantly strengthen its position. Fazer also

seeks to expand its unique added-value

range with products that are in demand,

such as functional bakery products. In or-

der to meet growth targets in fresh bread

production, Fazer will need to strengthen

capacity.

FROZEN PRODUCTS A SUCCESS

There is a briskly growing market for

frozen bakery products in Russia and Fazer

has succeeded in favourably developing its

frozen product business. Sales of Fazer’s

frozen products more than trebled during

2010 thanks to a new strategy, new

customers, new products and a unique

customer service model. New products

include traditional Russian pies, Texas and

Dallas buns, filled baguettes, doughnuts,

Karelian pies and Finnish rye bread. During

the year, Fazer also developed a service

programme, which trains customers to

work with Fazer products. These proactive

efforts propelled Fazer into fourth place in

the St Petersburg frozen bakery product

segment during 2010.

‘The frozen product segment still

holds plenty of growth potential for Fazer.

Production usage rates and operative prof-

itability have noticeably improved due to

increased volume, and the growth outlook

is interesting. But Fazer must continue to

develop its frozen product operations if the

company is to achieve its growth targets,’

says Krister Friberg.

The first phase of the Neva bakery

investment project was completed. The

Neva bakery, which specialises in frozen

products, now has a new sweet bakery

product line and its production premises

have been modernised. Investments have

also been made in logistics with the acqui-

sition of delivery vehicles and new ware-

housing.

A BOOST FOR CONFECTIONERY MARKETING

Fazer is in the challenger’s position in

Russia’s confectionery market. Geisha is the

unquestionable number one confectionery

brand in Russia.

Waning consumption and fluctuations

in the global market prices of raw materials

pose challenges in the confectionery busi-

‘Fazer’s goal is to grow and

to once again significantly

strengthen its position.’

English breakfast toast was the most successful product launch of the year.

Burge and Hercules are Hlebny Dom’s best selling products.

17

ness. Fazer aims to further develop coop-

eration within the bakery and confectionery

business, strengthen its resources through

a variety of development projects, and in-

vest in marketing its confectionery brands in

St Petersburg in particular. The long-term

goal is to strengthen the confectionery busi-

ness’ market position.

FAZER SEEKS GROWTH IN CATERING SERVICES

In 2010, Fazer succeeded in retaining its

position in the catering business in Russia.

Although the restaurant sector is now

growing again after the economic dip of

2009, competition for contract catering

services is tough and the rising price of raw

materials also affected Fazer’s operations.

A further increase in food prices is

expected in Russia.

Fazer’s restaurant operations are cen-

tred on the St Petersburg area, where Fazer

Food Services is the third largest catering

service provider. Fazer’s 17 staff restaurants

serve up about 8,000 meals a day.

‘Our goal is to become the market

leader in St Petersburg as a quality contract

catering brand, and also to grow Fazer’s café

business,’ says Uva Seglina, Country Manager

of Fazer Food Services Russia. The public

sector in particular holds a great deal of

growth potential in, for example, restaurants

at educational establishments.

Fazer acquired new customers in 2010,

such as the staff restaurants of Onninen and

Stockmann, and also opened two new Fazer

Cafés. The largest investment of the year

was opening a Fazer Café at the new Stock-

mann department store, which opened in

St Petersburg in November.

Profitable growth and expansion in the

contract catering market will also be key tar-

gets for Fazer Food Services Russia in 2011.

Increased efficiency will be sought by cen-

tralising production and improving logistics.

Highlights 2010 • An increased market share in the Moscow area through improved logistics, strong sales and brand-new products. • Volume growth and good delivery reliability in a challenging operating environment.

Personnel 3,966

Goals for 2011• To develop and launch innovative new products and concepts. • To bolster growth in the frozen business.• To boost capacity in fresh bread production.

HISTORY

Fazer’s earliest roots date back to the international St Petersburg of the late 1800s, where Karl Fazer trained as a professional confectioner. Once he was qualified, Karl Fazer worked for some of the city’s famous confectioners.

Fazer’s confectionery products were exported to Russia for the first time for the Olympic Games in Moscow in 1980. Exports began again in 1992. The Rus-sians are especially fond of Green Jellies, Geisha and Karl Fazer chocolate cakes.

Since 1997, Fazer has been a sharehold-er and developer of the Hlebny Dom bakery in St Petersburg, a city that has played a significant role in Fazer’s suc-cess story. Today, Fazer is a key player in the Russian bakery industry: market leader in northwest Russia and strong in the Moscow region.

’The frozen product segment still holds

plenty of growth potential for Fazer.’

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FAZER IN RUSSIA

18

Economic conditions in the Baltic countries stabilised during 2010 and the economy

began to pick up after the recession. Although Fazer bolstered its market position in the

bakery business and succeeded in improving results, Fazer did not meet its profit targets

e.g. due to the extended financial crisis.

Fazer maintains its position in the Baltic countries

2010 was a challenging year for Fazer in

the Baltic countries. The recession’s impact

on consumption hampered growth in the

bakery and confectionery business. The

increased price of raw materials and

energy, combined with heightened local

competition in the bread market, weakened

Fazer’s result.

Although savings

and efficiency

measures were

implemented,

the company

fell short of its

profit. In Lithua-

nia, Fazer bolstered its market position and

achieved a highly favourable result after

many challenging years.

Although consumer prices in the Baltics

rose during 2010, the average retail prices

of groceries were lower than in 2009. The

average price of bread was about 10 per

cent lower than in 2009, which impacted

upon the 2010 result for Fazer’s Baltic bak-

eries.

‘Fazer bolstered its position in the Baltic

bread market by increasing its market

share in Lithuania and Estonia. Fazer further

cemented its third-place position in Estonia

primarily through successful sales of white

tin bread. Fazer also bolstered its third-place

position in Lithuania,’ says Jesper Åberg,

VP Fazer Bakeries & Confectionery Baltic.

Although the market share in Latvia

declined slightly, Fazer retained its overall

second-place market position, and its first

place in toast loaves.

Fazer Must Leib (rye bread), which has

attained great popularity in Estonia, con-

tinued its Baltic

victory parade:

in Latvia it was

introduced as

Fazer Mella and

in Lithuania as

Gardesis Jore.

Must Leib is

now being imported into Finland, too.

BALTIC CONFECTIONERY BUSINESS REMAIN STABLE

In the Baltic countries, Fazer’s confectionery

business faces strong competition from local

companies. Fazer maintained its position

in the Baltic countries in a confectionery

market exhibiting generally weakened sales.

Fazer holds a solid position in the chocolate

segment in Estonia, while in other countries

it has the challenger’s role.

In 2010, Fazer merged its bakery and

confectionery businesses in the Baltic

countries and also overhauled sales and

distribution. Both projects generated highly

successful results.

HISTORY

Fazer’s history in the Baltic States began in 1993 when Fazer opened its first bakery in Tallinn. Fazer expanded into the other Baltic countries by acquiring the well-known bakery company Gardesis in Kaunas in Lithuania and the Ogre bakery Latvia. Fazer has gone from being an unknown player in the Baltic bakery industry to one of the best-known producers of several local favourites.

Thanks to a long history of exports, Fazer chocolate is also a familiar sight in the Baltics. Fazer is one of the leaders in chocolate segment in Estonia.

Highlights 2010 • A stable, profitable result in the Lithuanian market. By increasing its market share, Fazer achieved a solid third place in the Lithuanian bread market.• The successful merger of the bakery and confectionery businesses.• Fazer Must Seemneleib was chosen as the Best Estonian Product of the Year.

‘In Lithuania, Fazer bolstered its

market position and achieved a

highly favourable result after many

challenging years.’

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Gardesis Jore is the best-selling rye bread in Lithuania.

FAZER IN THE BALTIC COUNTRIES

Goals for 2011• To continue the development of the production kitchen in Tallinn. • To further improve the operative result and strengthen market positions in the bakery and confectionery business.• To improve profitability and cut costs in the confectionery and bakery business.

Personnel Estonia 905, Latvia 500, Lithuania 174

19

In line with the new business unit

structure, Fazer’s separate bakery and

confectionery organisations were merged

into a new unit in early 2010. The major

impact of this organisational change was on

roles and tasks in sales and marketing.

‘The Baltic bakery and confectionery

unit’s main goals are to improve its

operational result and to further bolster its

market position’, says Jesper Åberg. These

goals can be achieved by maintaining the

high quality of products and continuing to

develop the portfolio of products. Cost

management and increased raw material

and production costs will pose the greatest

challenges in 2011.

FAZER SELLS ITS BALTIC CONTRACT CATERING BUSINESS

In early 2011, Fazer decided to focus on the

Nordic and Russian food service markets

and to sell its contract catering and restau-

rant businesses in the Baltic region.

A letter of intent was signed with the

local management of Fazer Food Services

in Latvia for selling this business in Latvia

and Estonia. All restaurants and restaurant

personnel are included in the deal that is

expected to become effective during spring

2011. At the same time, the production

kitchen in Tallinn becomes part of Fazer

Food Services Finland.

‘Fazer’s goals can be achieved by

maintaining the high quality of

products and continuing to develop

the product portfolio.’

The popularity of the sweet Druva Maras rye bread is based on Latvian traditions.

Fazer Kodusai is one of Fazer’s oldest and best-selling products in Estonia.

20

Fazer Food Services achieved good results in Norway in 2010.

The background of profitable growth is in focusing on excellent quality,

working very closely with customers, as well as investing in the training

of personnel.

Food service business develops fast in Norway

HISTORY

Fazer is a challenger in Norway, being the fourth largest contract catering company.

Fazer has grown in Norway both through acquisitions and organic growth. Fazer’s food service oper-ations in Norway started in 2003 when Fazer acquired the majority in the Norwegian catering service company Adviso Meny AS. In 2006, Fazer bought KantineRingen AS which was merged into Fazer in 2010.

Fazer Food Services achieved good

results in the declining market in Norway.

Fazer managed to gain market share and

increase the sales of its food services by 5

per cent even though the market in general

weakened by 2–3 per cent.

TAILOR MADE CONCEPTS

‘Competent people making good food is

the basic rule in our daily work. We operate

very close to our customers and are able

to tailor a service concept which suits their

needs,’ says Managing Director Ivar Villa of

Fazer Food Services in Norway.

‘We have been able to broaden and ex-

tend our services outside lunch hours and

fill our customers’ needs for food services

at meetings, conferences and events.

With Fazer as their service provider, our

customers are able to host events in

their own premises, gaining a better guest

experience, better quality and lower prices

than if the events were arranged off site’,

describes Ivar Villa.

The Norwegians’ lunch preferences are

gradually changing – the traditional way has

been to eat the ‘matpakke’ (food pack) or

a cold meal at their desk, but now most

people are moving towards a hot meal

and salad with fresh and healthy bread in a

comfortable personnel restaurant.

The 43 personnel restaurants of Fazer

Food Services in Norway serve 25,000 cus-

tomers every day, which adds up to nearly

six million lunches per year.

During the year, Fazer Food Services

won several new accounts and opened

restaurants in several business complexes,

such as Filipstad Brygge, Helsfyr Atrium and

Skøyen Atrium.

HEALTH AND ENVIRONMENT IN FOCUS

Health and well-being and the environmental

impact of food interest an increasing

number of lunch guests. Fazer’s restaurants

in Norway have a special health and

environment programme which responds

to customers’ increasing interest. Fazer has

committed to serve healthy food in its

restaurants.

Fazer Food Services is focusing on

environmental issues and has started a

certification programme with Miljøfyrtårn,

which is the Norwegian public certificate.

During year 2011 Fazer is aiming to start

certifying its restaurants.

The goal is to continue the profitable

growth of the food service business and

to strengthen position as the number one

quality operator in Norway. This will be

possible through continuous focus on and

investment in employees and maintaining

position as the most attractive employer

in the branch.

Highlights 2010 • Excellent results and growth in 2010.• Investments in training and education of personnel.

Goals for 2011• Profitable growth.• Most attractive employer and number 1 quality operator in Norway.

Personnel 291

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FAZER IN NORWAY

21

Fazer Food Services achieved very

good results in Denmark. 2010 was

the best year ever for Fazer’s food

service business in Denmark.

Fazer exceeded expectations in Denmark

FAZER MAKES

ME FEEL GOOD

Consumers are becoming more and more

interested in well-being and daily nutrition. A varied

and balanced diet is important, but there is a lot

more to holistic well-being. We at Fazer believe

that well-being is a balance between healthy food,

first-class ingredients and allowed moments of

indulgence. A good feeling tastes good.

When the global engineering company

FLSmidth was going to renew one of their two

personnel restaurants in Copenhagen, their

purchase coordinator Eva Seest Dinesen was sure

that healthiness and well-being were going to be

the focal points. The concept was developed in

cooperation with the client, Fazer’s area manager

and the chef Jesper Olsen, who had responsibility

for the renewal project from day one. To him,

healthiness and tastiness are not opposites, but

two focus areas that work well together.

The guests are met by the delicious smell of

food and greeted by the front cook as they enter

the Wip restaurant. Every day, small portions of fish

or meat are made on the grill. Vegetables take up a

great part of the buffet and are one of the reasons

why the food is so healthy and tasty.

‘It’s also more sustainable and economical’, Eva

points out. The amount and the quality of fat are

considered, too. The guests expect to be inspired

every day and to find something they hadn’t

thought of themselves. And the lunch meets their

expectations. To Eva, one of the reasons for this

is that much thought is put into the composition,

where every element is an integrated part of the

meal.

She thinks it is important that Fazer Food

Services has Food and Meal Guidelines and has

launched a Fish Policy according to WWF recom-

mendations. It creates added value to the client.

Around 150 people work in the premises,

but as many as 400 people come to eat at the

personnel restaurant every day. Many guests, both

blue and white collar workers, are willing to make

the effort in order to have healthy food in this

personnel restaurant. The chef Jesper Olsen and

his staff think about making every bite tasty. His

experience is that the more colour, the easier it is

to nudge the guest towards choosing the delicious

and healthy food.

Fazer Food Services is the second largest

food service company in Denmark. Fazer

has two food service brands in Denmark,

Amica and Wip. There are 120 Wip

personnel restaurants, operating mainly

in white-collar companies, and 33 Amica

outlets, mainly focusing on the public and

manufacturing sector.

‘Healthy food and correct nutrition are

important selection criteria for the Danish

lunch guests’, says Morten Hammerich,

Managing Director of Fazer Food Services

Denmark.

‘We pay special attention not only to

the healthiness of food, but also to the

ecological and seasonal aspects. It is our

goal to considerably diminish the carbon

footprint of our restaurants in the coming

years’.

NEW ACCOUNTS BROUGHT GROWTH

2010 was a very good year for Fazer in

Denmark; Wip restaurants were successful,

as expected, and Amica restaurants

exceeded their targets. Fazer Food Services

managed to get significant new public sector

accounts, the most notable one being food

services for the Faculty of Science of the

University of Copenhagen.

‘Since the recession, customers have

been extremely price conscious, but we

have been able to tailor a competitive

but high-quality service concept for our

customers’, says Morten Hammerich.

Fazer Food Services got good scores

also in the customer satisfaction survey

which is conducted every two years.

Customer satisfaction in 2010 was on a

higher level than in the previous survey.

Fazer Food Services will invest in food

service of high quality and healthy and tasty

food also in the future, and it will strive

at minimising the carbon footprint of its

operations.

Highlights 2010 • Fast growth of the Amica brand.• New customer: Faculty of Science of the University of Copenhagen.

Goals for 2011• Corporate responsibility issues, reducing carbon footprint in restaurant operations.

Personnel 832

HISTORY

In 2001, Fazer bought Wip personalerestauranter, established in Denmark in 1982. The service concept was expanded in 2005 when Fazer opened the first restaurants under the Amica brand, mainly targeted at public sector customers. Fazer is Denmark’s second largest contract catering company.

Tyrkisk Peber, originally from Denmark, became part of Fazer in the 1980´s and their production was moved to Fazer’s factory in Lappeenranta in 1996. Ever since, the popularity of the product has grown in all Nordic countries.

TurnoverM€ 2008 2009 2010

100

80

60

40

20

0 70 75 81

FAZER IN DENMARK

22

Corporate responsibility is rooted in everyday activities

uring 2011, group level

long-term goals will be set

and indicators to monitor

performance will be chosen

for all areas of corporate

responsibility. In addition the activities of the

internal corporate responsibility network

will be streamlined.

CORPORATE RESPONSIBILITY SUB-DIVIDED INTO MANAGEABLE AREAS

Fazer Group is committed to operating in

a responsible manner. At Fazer, corporate

responsibility issues are strategic and actively

managed and measured as a part of the

daily work. Fazer’s corporate responsibility

is guided by the corporate responsibility

policy, environmental policy and ethical

principles that are based on the ten

principles of the UN Global Compact. In

order to manage the actions and to better

measure the progress, corporate respon-

sibility is divided into six areas. The areas

are presented in the text below and in the

illustration on page 23.

Corporate responsibility communica-

tions can be seen as a seventh area. Fazer’s

corporate responsibility communications

aims to offer accurate and up-to-date

information on Fazer’s corporate respon-

sibility performance and also to report

on the corporate responsibility work and

accomplishments in a transparent and

interesting manner.

Fazer publishes information on its cor-

porate responsibility related events and

improvements on its Web site and in the

Annual Review. The reporting of corporate

responsibility is developed in accordance

with the GRI (Global Reporting Initiative).

Further information on corporate respon-

sibility can be found on Fazer’s web site

www.fazer.com in the section Our respon-sibility.

RESPONSIBLE BUSINESS – ECONOMIC WELL-BEING AND ETHICAL PRINCIPLES

Fazer is a family owned company, there-

fore careful planning, long-term focus and

profitable growth are emphasised in Fazer

Group’s operations. Group’s governance

practice forms the basis for management

at Fazer and the daily work is guided by

Fazer’s values and detailed operating prin-

ciples. In its business operations Fazer abides

by current legislation and ethical principles.

Fazer provides and supports economic

well-being in its areas of operation. In 2010,

Fazer paid 509 million euros in salaries and

20 million euros in taxes, purchased goods

and services with altogether 878 million

euros from 12,956 suppliers.

The implementation of ethical principles

continued in 2010 in all business units. The

business units in Russia boosted the imple-

mentation by publishing detailed guidelines

that supplement the ethical principles. The

goal for 2011 is to further develop the re-

sponsible business programme and to bring

it to the level of concrete targets.

GROWING DEMAND FOR ETHICAL QUALITY

The modern consumer takes quality and

product safety as a matter of course, but in

growing numbers wants to know how to

During 2010, Fazer’s corporate responsibility vision, strategy and long-term goals were

defined and corporate responsibility programme completed. The focus was especially

on environmental responsibility, responsible sourcing and responsibility related issues in

the consumer interface. The main themes of corporate responsibility communications

were low-carbon and the sourcing of cocoa.

D

23

make a difference through dietary choices.

The consumers are, among other things,

interested in food origin, nutritional facts

and packaging.

Nutritional issues were addressed when

the health benefits of rye and chocolate

were investigated in 2010 at the bakery

and confectionery business area. These

efforts continue in 2011 in the form of re-

search projects. Fazer is a founding member

in the HEALTHGRAIN Forum, which aims

to communicate about the health benefits

of wholegrain cereals. The amendments

to the health claims directive will pose

challenges for the entire food industry.

In autumn 2010, Fazer Food Services

in Finland introduced low-carbon lunch

alternatives, in which special attention was

paid to keeping the carbon footprint of the

ingredients as low as possible. The low-car-

bon lunch attracted a lot of interest and in

autumn 2011, Amica restaurants in Finland

will have a ‘Baltic Sea Diet’ theme week. The

diet consists of locally produced, low-carbon

ingredients, such as vegetables, berries and

Finnish fish and grains.

Low-carbon menu options have also

been planned for PR and entertainment

functions. In addition, Fazer Food Services

is looking at the possibility of introducing

a permanent low-carbon alternative on

the menu at selected restaurants. More

information on low-carbon lunch can be

found on page 30.

Consumers’ wishes have influenced also

on Fazer Food Services’ decision in Finland

to start, from February 1st 2011, only using

stock preparations which contain no mono-

sodium glutamate (E621).

ENVIRONMENTAL RESPONSIBILITY – FOCUS ON ENERGY AND WASTE

The key environmental goals of the bakery

and confectionery business area are related

to improving the energy efficiency of pro-

duction, reducing the amount of production

waste and optimisation of material and water

use. In Finland, Fazer Bakeries and Fazer

Confectionery have signed the Energy

Efficiency Agreement of the Confederation

of Finnish Industries (EK) that aims to im-

prove energy use efficiency by 9 % by 2016.

In the Food Services business area the

key environmental goals are related to food

waste minimisation and energy efficient

operations in the restaurants. The amount

of food waste can be minimised through

sourcing process, menu development and

restaurant’s material processes. Energy

efficiency criteria are a part of the machinery

and equipment acquirement process and

environmental issues are also a part of user

training. A vital part of practical environmen-

tal management is to include environmental

issues explicitly in the personnel’s job

descriptions.

In order to reach the energy efficiency

targets, energy analyses were launched in

the largest bakeries in 2010. The results of

the analyses help to define the areas and

actions offering most potential for energy

efficiency and savings efforts.

‘Fazer is a family owned company,

therefore careful planning, long-

term focus and profitable growth

are emphasised.’

Responsible Business Responsibility and Consumer

Environmental Responsibility

Responsible Sourcing

Responsible HR

Stakeholder Relations

24

Energy profile of purchased electricity

has a big impact on the amount of green

house gas emissions. In 2010, 36,3 % of the

electricity Fazer purchased in Finland, was

generated with renewable energy, 32,5 %

using hydroelectric power and 3,8 % using

wind power. The stated targets for 2011 are

50 % for hydroelectric power and 10 % for

wind power.

The national energy positions and

policies also influence Fazer’s decisions on

electricity purchases and energy solutions

in different countries. The Group’s energy

strategy and positions will therefore be

updated during 2011.

The progress of environmental certifi-

cation (ISO14001) of Finnish bakeries was

slower than expected in 2010. The environ-

mental impact evaluations and environmen-

tal risk analysis will be finalised during 2011.

The investment process was updated,

to more systematically include the environ-

mental issues in the planning of investments

and investment requirements. During 2011,

the documentation regarding environmental

issues, used in the tendering process and

in the supplier evaluation process, will be

updated.

The aim of Fazer Bakeries Finland’s

three-year Foodprint project is to develop

methods and tools for collecting and calcu-

lating carbon footprint related data in the

food industry value chain. As a part of the

project, Fazer made a decision to calculate

the carbon footprint of Fazer Ruispuikula

bread and to issue a carbon label on its

consumer package. The calculations were

carried out in late 2010 and as a result, the

carbon label, Fazer’s Carbon Flower was

launched in February 2011. More infor-

mation can be found on Fazer’s web page

www.fazer.fi/hiilijalanjalki (at the moment

only in Finnish).

Fazer has participated also in other en-

vironmental responsibility related projects,

some of which also continue in 2011. A list

of projects with short descriptions can be

found on www.fazer.com in the section Our responsibility.

Fazer’s Kannelmäki office premises

were awarded a WWF Green Office envi-

ronmental label in 2010. The WWF Green

Office programme aims to reduce the

green house gas emissions and the size of

the ecological footprint of office premises.

Usage of packaging materials (kg/prod ton)Total amount of waste (kg/prod ton)Amount of mixed waste (kg/prod ton)Amount of animal feed (kg/prod ton)Total energy consumption (MWh/prod ton)Usage of water (m3/prod ton)Used raw materials (kg/prod ton)Amount of production (ton)

The indicators cover the operations of Fazer Confectionary, Fazer Bakeries and Fazer Mill & Mixes

2010

55.426.96.9

85.71.03 1.8 921

580,462

2009

34.9

29.9

9.5

80.3

1.01

1.9

937.1

590,547

Environmental indicators

2010 highlights• Low-carbon lunch at Amica restaurants.• WWF Green Office label for the Kannelmäki office premises in Finland.• Purchase of first certified batches of cocoa and palm oil. • 36,3 % of hydro-electricity and wind power electricity (in Finland).

Goals for 2011• Fazer Carbon Flower label for Fazer Ruispuikula bread.• Finalising energy analyses. • Updating the Group’s energy strategy. • Implementing the environmental programme for restaurants.

Fazer introduced a new carbon footprint label for Fazer

Ruispuikula bread in February 2011.

Customers > Fazer (turnover)Suppliers (sourcing) • direct sourcing • indirect sourcingPersonnel (salaries)Society (taxes)Owners (dividends)Financiers (financing costs)

Distribution of cash flows (M€) 2010

1,514

5393395092019 0

2009

1,441

510

361

496

18

9

12

• Environmental programme for local (in-store) bakeries• A corporate responsibility programme built for Fazer Mill & Mixes

Challenges • Broadening the scope of responsibility work from Finland to other countries of operation.• Number of Group-level key indicators still modest. • The favourable trend of decreasing production waste in bakeries slowed down in 2010.• The share of suppliers who have answered the corporate responsibility survey growing slowly.

25

The focus areas for 2011 include

formulating and implementing the environ-

mental management programmes tailored

for restaurants and in-store bakeries and

also building a corporate responsibility

programme and setting environmental

targets for Fazer Mill & Mixes.

STAKEHOLDER RELATIONS – ONGOING DIALOGUE

The most important stakeholders for

Fazer are owners, personnel, customers,

consumers, the suppliers of products

and services, the media and various

organisations and authorities.

In early 2010, Fazer conducted a

survey in Finland and Sweden to find

out stakeholders’ expectations and views

on the company. Fazer has an excellent

reputation and it is highly valued among its

stakeholders. The stakeholders are especially

interested in the environmental impact of

operations, the effect of food on health and

the responsibility of sourcing. Stakeholders

expect Fazer to be more active in its

communications on corporate responsibility.

Corporate responsibility communications

has since then been actively developed.

Stakeholders are also very keen to

actively discuss with Fazer on issues they

are interested in.

Fazer Group aims to establish a

common and systematic way for managing

stakeholder relations. The first step is to

map the stakeholders and to appoint the

people responsible. The goal is to create

an ongoing dialogue between Fazer and

its stakeholders. In this way Fazer is better

able to take stakeholders’ expectations into

consideration.

Since the beginning of 2010, Fazer has

been a corporate partner of the SOS

Children’s Village in Finland, Sweden and

Russia. The cooperation was visible to

consumers in different product promotions

during the year. Fazer’s personnel and

owners were offered an opportunity to

familiarise themselves with the organisations’

activities.

In Finland, Fazer continues supporting

the Finnish Antidoping Agency’s Clean

Win programme. In Sweden, Fazer’s

Skogaholm brand supports the Friends

association, which aims to prevent bullying

at schools.

‘Fazer has an excellent reputation

and it is highly valued among

its stakeholders.’

RESPONSIBLE SOURCING

As part of its corporate responsibility,

Fazer monitors the quality and origin of

the raw materials it uses as well as the

overall responsibility of the supply chain.

Auditing the potential supplier is part of

the monitoring process. The purpose of the

audit is to assess the level of the supplier’s

performance regarding production, quality

and environmental issues.

During 2009, the supplier monitoring

was boosted by sending the biggest suppli-

ers a separate questionnaire on corporate

responsibility. At present this questionnaire

is a part of the normal supplier approval

process. By the end of 2010 the answers

to the questionnaire received from the sup-

pliers covered 50.84 % of the total volume

of purchases.

To support the sustainable production

of palm oil, Fazer has made a decision to

completely convert to the RSPO certified

palm oil by the end of 2012. In 2010, 33 %

of palm oil volume used was RSPO certified

and in 2011 the share of certified palm oil

Fazer uses will double to 66 %.

In 2010, Fazer Food Services made a

commitment to comply with the WWF’s

recommendations on fish served at res-

taurants. Any species on the Red List were

removed from the selection and the use

of Green List species and the use of MSC

(Marine Stewardship Council) certified

products were promoted. By the end of

2010, 6 % of fish used was MSC certified

with the target of 15 % for 2011. The MSC

certification guarantees that the fish has

been caught using ecologically sustainable

fishing methods.

WWF updated its recommendations

in January 2011. Fazer Food Services will

apply the updated recommendations to its

offering starting May 2011.

Decisions resulting from WWF’s recom-

mendations have also been implemented

in Sweden and Denmark. In Sweden, the

proportion of MSC certified fish is at the

moment at the level of 5 % with the target

of 10 % by the end of the year.

Fazer’s cocoa sourcing strategy specifies

the criteria for the responsible sourcing of

cocoa. Developing traceability and the

principles of the World Cocoa Foundation

form the basis for the cocoa sourcing

strategy. Fazer is committed to increasing

the proportion of cocoa grown according

to Fazer’s principles of sustainable cocoa

farming by 10-15 % per year, depending

on the availability and market situation.

The goal is to only use cocoa that fills

Fazer’s requirements by 2017. In 2010, the

proportion of certified cocoa was slightly

over 5 % of purchased volume of cocoa

raw material.

26

Many Fazer employees experienced major changes in their tasks and working environment

during 2010. The ongoing Fazer for Future programme has brought new tasks and new

ways of working, and has influenced everyday work throughout the group.

Fazer – a team of experts

ne of Fazer’s most im-

portant success factors

is the company’s expert

and motivated personnel.

In the midst of all these

changes, Fazer is even more focused on

training personnel and providing supervisors

with the support they need to build a new

organisation.

‘Building a new organisation in all of

Fazer Bakeries & Confectionery’s operating

countries, as well as the complete overhaul

of the catering business in Finland and

Sweden, has required a great deal of

effort from many Fazer employees. It’s

been a tough year for many people, and

our primary goals are to create team spirit

and a Fazer culture, and to firmly establish

our new working methods,’ says Pekka Heinänen, Senior Vice President, Human

Resources, Fazer Group.

Due to Fazer’s group-wide development

project, which started in 2009, the Group’s

number of personnel fell from 16,768 to

16,573 during 2010. In almost all countries,

the reductions only affected white-collar

employees. Fazer offered adaptation training

to all those leaving the company.

SUPPORTING SUPERVISORS THROUGH CHANGE

During the year, change training was

arranged for all employees who were

affected by the changes in the Finnish

bakery and confectionery business units.

The content of the training was tailored to

each group’s needs.

The project to develop working methods

at Fazer Food Services’ restaurants in

Finland and Sweden required a substantial

training programme for all restaurant staff.

During the year, a total of 4,000 restaurant

employees in Finland and Sweden took part

in the training.

Fazer’s development projects will

continue in 2011 and are explained in more

detail on page 28.

CENTRALISED RECRUITMENT IN FINLAND

Every year, Fazer recruits many new

employees for its restaurants, bakeries and

confectionery factories. In Finland alone,

Fazer advertised about 700 positions and

received about 20,000 applications during

2010.

‘Applications peak at the Vantaa

confectionery factory during the Christmas

season, and at bakeries during the spring

when people are applying for summer jobs.

Restaurant personnel are hired steadily

throughout the year,’ says Recruitment

Manager Katariina Ahonen.

During 2010, Fazer brought its

recruitment processes in Finland under

one roof. The centralised recruitment

office takes care of all applications-related

processes, from drawing up advertisements

to handling applications and providing advice

on choosing personnel. Centralisation

seeks to standardise the recruiting process

in all business units and make it easier for

supervisors to find new employees.

The restructuring of Fazer’s restaurant

operations was also a major task for the

recruitment organisation in Finland. Fazer’s

approximately 650 Amica restaurants,

which were previously grouped according

to business sector, were reorganised

into regional groups. As part of this

change, hundreds of restaurant manager

positions were discontinued and about

160 restaurant group managers were

chosen to head up the new groups. The

change did not, however, lead to personnel

reductions at restaurants. Over 300 people

were interviewed during the nationwide

recruitment process.

INVESTING IN OCCUPATIONAL WELL-BEING

Fazer believes that personnel well-being

is an asset to the company. The company

takes occupational well-being into

consideration by developing working

1009080706050403020100

4342414039383736353433

FI SE DK NO RU EE LV LT Average

Employees by age and gender

Women Men •Average age

O

27

methods and conditions, minimising high-

load work stages and investing in new

systems and equipment.

Fazer measures its success in

occupational well-being with the aid of

an annual group-wide personnel survey.

The results of the 2010 survey were

at a pan-European level. As in earlier

years, personnel satisfaction at Fazer

Food Services was high in all subareas,

while the organisational changes at Fazer

Bakeries & Confectionery were more

evident in the results. For 95 per cent

of respondents, it was important that

Fazer seeks to be a pioneer. The ability for

employees to influence decision-making

and their own work were identified as

areas for improvement. The survey also

asked about development discussions and

their usefulness. The results show a clear

correlation between job satisfaction and

whether or not development discussions

were held.

Fazer’s investments in occupational

safety were evident in a reduced accident

frequency rate, which was noticeably lower

than in 2009. Since 2009, accidents have

been reported using a group-wide system,

and every incident is thoroughly analysed.

Fazer wants to offer its employees an

equal opportunities workplace. People

working in an equal opportunities environ-

ment feel they are being fairly treated and

this affects their well-being.

Fazer’s equality plan is updated every

year, not only as a legal obligation but

also as a concrete method of promoting

equality. Its objectives include wage-related

targets and seeking equal opportunities

for development. It also encourages

all employees at all organisational levels

to aim for any position regardless of

gender.

Fazer’s employer image has remained

exceptionally strong from year to year, and

Fazer wants to invest in retaining its status

as the most desirable employer. Fazer

cooperates with vocational institutions and

offers trainee positions.

Frequency of occupational accidents 2010

11,925,9

2009

18,6

28,3

Number of accidents per one million working hours

Fazer Food ServicesFazer Bakeries & Confectionery

RESPONSIBILITY IS A WAY OF WORKING

Fazer has always built its operations on sustainable

foundations. Fazer wants to be a visibly active part of the

community and to increase local well-being wherever it

operates. In the Baltic countries, Fazer has a long tradition

of responsible cooperation with different organisations.

COOPERATION WITH THE BLOOD CENTRE

One of Fazer’s most significant charitable

works in Estonia is the cooperation with the

Blood Centre to promote blood donation.

Fazer gives every blood donor a free packet

of Fazer Must Seemneleib (black rye bread

with seeds), which was chosen as Estonian

Product of the Year 2010. Fazer also donates

10 Estonian cents to the Blood Centre for

every packet of Must Seemneleib sold.

Thanks to its popularity, the donations

reached EUR 6,000 in the summer of 2010.

Dr Riin Kullaste, Director of the

Blood Centre, says that the first year of

cooperation with Fazer has been highly

successful.

‘Thanks to this cooperation, we’ve

received substantial support, which is vital

for the operations. Blood donors have

been very pleased to receive Fazer’s tasty

products.’

BREAD UNITES

Fazer’s bakery in Ogre, Latvia is one of the

city’s major employers. But there are also

other reasons why it plays an important

role in local cooperation.

For the past eight years, Fazer has been

cooperating with surrounding municipalities

by donating bread to those with limited

means. Every week, Fazer delivers fresh

bread to social workers, who then distribute

it to families in need.

Ogre pensioner Vitalijs Konstantinovs is happy to have the Fazer bakery as a

neighbour.

‘Friday is always a special day for me

– that’s when I get fresh, tasty bread.

I particularly like fresh rye bread,’ he says.

In 2009, Uldis Augulis, then Latvia’s

Minister of Welfare, awarded Fazer a diploma

in recognition of the company’s long-term

investment in improving local conditions.

Over the years, Fazer has expanded its

cooperation with local towns and cities,

and Fazer now supports several charitable

projects and youth activities in the Ogre

region. In 2010, youth organisations awarded

Fazer the Ogre Youth Award of the Year.

RESPECTING TRADITION

Fazer supports several projects for the

elderly in Lithuania. By taking part in social

work for the elderly, Fazer wants to remind

everyone that we shouldn’t forget our roots

and traditions.

The elderly receive bread and are

invited to Fazer’s bakery to see how bread

is made using modern equipment while

still respecting old baking traditions. Fazer

received a diploma from the city of Kaunas

in recognition of its social responsibility.

‘We’re glad that Fazer takes part in social

work for the elderly, as it makes a great

impact on their everyday lives. It energises

them and brightens up their day,’ says

Andrius Kupcinskas, Mayor of Kaunas.

Marina Nikitina, a baker, is actively involved in the projects supporting the local community in Ogre, Latvia.

28

CLOSER CO-OPERATION THROUGH NEW WAYS OF WORKING

The Fazer for Future programme, which was launched in autumn 2009,

continued in all business units in 2010. As part of this substantial project,

working methods were standardised and renewed in the restaurant,

bakery and confectionery businesses. This work will continue in 2011

in a variety of projects.

A JOINT MANAGEMENT MODEL FOR RESTAURANTS

In 2010, Fazer Food Services’ operations

and support services in Finland and

Sweden were aligned with the Group

model. Management practices were

standardised and daily benchmarks for

operative functions were introduced at

Amica restaurants. Thanks to the new

management model and restaurant group

structure, restaurants are more efficient

and supervisors are left with more time to

devote to customer relations.

Clarifying the importance of each

employee’s contribution on the restaurant’s

result is a key aspect of the change.

Brief daily meetings examine whether

the restaurant’s targets have been met:

volumes versus planned volumes, waste,

and customer satisfaction. Employees also

evaluate their job satisfaction.

Operational business indicators were

standardised in all restaurants in Finland

and Sweden. The same will be done in the

other countries later.

The change had a great impact on

restaurants, which needed to offer extensive

training for personnel. The employees were

trained in teams and given support in using

the new tools. These organisational changes

had no impact on the number of personnel

employed in the restaurants.

CONTINUOUS IMPROVEMENT AT BAKERY

AND CONFECTIONERY PRODUCTION

In 2010, the Fazer Way in Production

programme was launched in the production

of Fazer Bakeries & Confectionery.

This long-term programme seeks to

standardise production processes and

working methods, and it will be gradually

introduced at all of Fazer’s production units.

Minor improvements to everyday tasks can

boost efficiency and make working together

easier, thereby improving well-being at work.

The programme will help nurture a culture

of continuous improvement.

The Fazer Way in Production covers

all bakeries and confectionery factories,

as well as all those who work closely with

production. The programme is progressing

at varied rates in different locations, but

in a few years’ time, it will be in use at all

production units.

The impetus for this programme was

consumers’ and customers’ expectations.

Fazer wants to respond to them with

teamwork, and by improving occupational

safety, quality, delivery reliability and

efficiency. The programme also places a

great focus on environmental issues. Shared

goals and standardised working methods

will be introduced through clearly defined

principles, techniques and tools.

DEVELOPMENT PROGRAMME FOR SALES AND CUSTOMER RELATIONS

The Fazer Way in Sales programme seeks

to find a shared, group-wide way of working

for sales and customer relations. Fazer

aims to develop working methods and

processes that meet the standards required

to compete successfully on international

markets. The programme also seeks to

gain an even better understanding of

customers’ strategies and ways of working.

Taking a more consumer-oriented approach

to market management with customers will

enable profitable growth.

The programme will help sales by

providing concrete applications of Fazer’s

values that can be applied to everyday

work. Customer focus in strengthened with

new methods for generating added value

for customers. Quality will be improved by

offering the best possible tools for sales and

marketing. Cooperation between units will

be strengthened by sharing best practices

and developing strategic expertise.

SUPPORT AMIDST CHANGE

In the midst of all these changes, Fazer

invested in change management training

of the supervisors. The training sessions

arranged in Finland gave supervisors

concrete tools for change management

and building a new organisation.

Employees of the Amica restaurant at Paulig’s coffee roastery in

Vuosaari review KPIs of the day in their afternoon meeting.

29

Rita Jakovleva has worked in Fazer’s

Russian bakeries for over 30 years

now. Over the years, she’s gained

broad experience in baking tech-

nology and has even been awarded

inventor’s certificates for developing

pryaniks (Russian gingerbread).

Rita started out as a manufactur-

ing engineer at the Moscow district

bakery in Leningrad right after gradu-

ation in 1980. This was before the bak-

ery was called Hlebny Dom. She later

worked as deputy manager of Hle-

bny Dom’s confectionery production,

and since 2009 she’s been production

manager of Neva bakery. Rita remem-

bers one of her most unusual tasks

was to bake pryaniks in the shape of

fairytale characters for the Mosfilm

film studio.

‘Always follow the recipe’ has been one

of Ulla Pirinen’s main principles at work.

Ulla started work as a trainee at the Fazer

Café in Kluuvikatu in 1969. She remembers

how a salad dressing she’d prepared with

absolute precision was whisked back into

the kitchen after a respected regular pro-

nounced it ‘below par’. After thinking for

a moment, Ulla sent back the exact same

dressing. ‘Now it’s perfect,’ the lady had re-

plied. ‘I couldn’t have done anything else,’ she

laughs. ‘I made it exactly to the recipe and it

tasted fine to me.’

During her forty years at Fazer, Ulla Pir-

inen has had first-hand experience of how

Finnish dining culture has changed. For ex-

ample, she’s worked as a café inspector,

head of a central kitchen and regional man-

ager. She’s also merged restaurant industry

businesses acquired by Fazer and, for the

last twenty years, has been working in R&D.

‘I’ve always respected my employer and

Jan Carlsson began working for Fazer in

1986. Back then, Fazer had the same kind of

marketing organisation in Sweden as it does

today. Jan started out as a sales assistant in

the service trade sector, which included kiosks

and small convenience stores. Since then, he’s

worked as a large account seller, sales coor-

dinator and sales manager, and is now a key

account manager. He is responsible for gen-

erating new business and also takes part in

developmental projects, primarily those associ-

ated with logistics.

‘Both the industry and our working

methods have changed a lot over the years.

When I started, we only had a single sales

department responsible for everything. Now

we have several departments and we also

cooperate extensively with other functions.

Thanks to digitalisation, everything happens

much faster. The structure of the retail trade

has also changed a lot,’ Jan says.

One of the most interesting phases in

Jan’s career was the restructuring of the

confectionery business after the de-merger

of Cloetta Fazer. ‘I’m so glad I got to play a

part in creating the new Fazer. We built up

a completely new sales organisation in only

I’m proud to work for Fazer,’ Ulla says. ‘And

it’s been great to work for a pioneer – Fazer

has so many ‘firsts in Finland’ to its name.’

Ulla is now facing a fresh challenge as

she switches to a completely new career –

retirement – which will leave her more time

for travelling and nature hobbies.

The recipe for a long and successful career

four months. It was really challenging, but also

an unforgettable experience.’

And what has made Jan content enough

to stay in the confectionery business for 25

years? ‘I’ve always enjoyed working at Fazer.

I’ve had the opportunity to try my hand at

sufficiently challenging tasks. Working long-

term for the same company also brings a

certain kind of security, as you know so many

people there.’ None of Jan’s colleagues from

his early years work for Fazer any longer,

but new workmates have taken their places.

‘It’s a mix-and-match of past and present,’

he says.

A sweet career with Fazer

My life’s work – bread

‘The most significant change came

when we began cooperating with

Fazer. It brought new ways of think-

ing and working, and we had to learn

new technologies. It was hard in the

beginning, but Fazer took the right at-

titude towards its employees, so we

understood that we’re all members of

one big family,’ says Rita.

And what has made Rita stay at

the same company for so long?

‘Working with bread gives me

great pleasure, and that’s the secret of

my long career. It’s also important to

work for a company that’s constantly

developing. New projects bring fresh

knowledge and enthusiasm, and you

also learn from them.’

30

LOW-CARBON LUNCHES BENEFIT THE ENVIRONMENT

ood is responsible for about a

fourth of the daily climate load

caused by humans. So what we

eat does make a difference. By

filling our plates with more fruit,

vegetables and grain products, we can

significantly reduce our carbon footprint.

Animal products cause the greatest impact

on climate.

As a responsible company, Fazer wants

to encourage its customers to use Fazer’s

products and services responsibly. Fazer

Food Services in Finland looked for ways

to reduce the climate impact together with

its lunch guests. The analysis was carried out

as part of the Peloton project steered by

think tank Demos Helsinki and funded by

SITRA, the Finnish Innovation Fund.

A tangible and tasty result of this work

was born in autumn 2010 – the Fazer low-

carbon lunch. Amica restaurants in Finland

organised a ‘Friend of the Environment’

theme week, during which they offered

lunch alternatives whose carbon footprint

was as small as possible. The menu favoured

fish, seasonal vegetables and wild berries.

Lunch guests were also encouraged to

follow the amount of organic waste they

generated during a week.

‘It was great to see how enthusiastic

the restaurant personnel were in arranging

the theme week. The low-carbon lunch is

still quite a unique concept globally, so both

Fazer personnel and lunch guests will learn

new things about food and its impact on the

climate,’ says Outi Kuittinen, a researcher at

Demos Helsinki.

Measuring the climate impact of food

is quite a new concept and determining

its carbon footprint requires complex

calculations.

‘Environmental issues can seem complex

and people may feel they can’t really make a

difference. However, by choosing what you

eat, you can easily reduce your own carbon

footprint. These every-day decisions carry a

lot of weight. Besides, planning your meals

can be fun,’ Outi explains.

Lunch guests’ reactions to the low-

carbon lunch options were varied. Some

were delighted by the focus on vegetarian

and environmentally friendly alternatives,

while others weren’t ready to change their

habits just yet.

‘People consider environmental issues

to be important, but they’re not always

ready to take them into account when

eating. When trying to influence consumer

attitudes, the best message you can send

out is good food,’ says Outi.

Fazer meets friends online

F DID YOU KNOW THAT

Lunch guests at Amica restaurants throw away an average of 40 grams of food per meal. That means a total of about 1.32 million kilos of food is tossed into the trash every year.

Fazer set up a Facebook profile in early

2010 and hasn’t had any trouble making

friends online.

Fazer is happy to chat openly with its

Facebook fans about whatever they like.

Fazer’s representatives write under their

own names and will answer questions,

discuss current affairs and ask fans for their

opinion on Fazer-related topics.

In December 2010, Facebook fans

were asked to send their special memories

of Fazer. The response was great. One Karl

Fazer Milk Chocolate fan, Marja Tuomisaari, reminisced about 1964:

‘Fazer had an unforgettable slogan: Say

‘Fazer’ when you want something good.

I remember once when I was about four,

my mom found me hiding in the closet

whispering ‘Fazer’. At that age, you believe

in magic. And luckily, the Alphabet Rooster

– a character in my primer – laid a tasty

chocolate for kids learning to read.’

Fazer helped encourage the four-year-

old Marja to learn to read and Karl Fazer

Milk Chocolate remains her favourite

chocolate to this day. ‘It’s the best tasting

chocolate for sure, but I also look on it as

being very Finnish. A piece of chocolate

comforts you when you’re feeling down –

or acts as a melt-in-the mouth dessert to

top off a good meal. And if I’m just feeling

in the mood for something good, I might

pop a tiny treat into my mouth,’ Marja

says, considering her relationship with her

favourite product.

Marja found Fazer’s Facebook page

through a friend.

‘At first, I was a little shy of ‘liking’

companies or products, but then I realised

that, hey, I really do like this product. So why

not tell others about it?’ she says.

Fazer’s Facebook page also provides

information about new products.

‘Product development is, of course,

important, but I guess I’m one of the old

guard – I’m hoping that the good old prod-

ucts will remain alongside the new ones,’

Marja says.

DID YOU KNOW THAT Fazer has several official fan pages on Facebook. The two major ones – Fazer Finland and Karl Fazer Milk Chocolate – both have over 100,000 fans, and that number is growing all the time.

31

Majlen started at Fazer in

1984 after taking her

matriculation exam. As

a sales representative,

she visited stores selling

Fazer chocolate. The job taught her tenac-

ity – she was often turned away without

making a sale.

‘Much later, I learnt that I’d been

given the toughest sales area – one we

only toured occasionally.’

Once she’d completed her business

studies, Majlen’s father suggested she work

at Fazer’s café in Herttoniemi. She later

continued at Karl Fazer Café in Kluuvikatu.

‘I was able to familiarise myself with all

the departments, and do everything from

baking cake bases and meatballs to decorat-

ing cakes,’ says Majlen.

Majlen secured a place at the world-

renowned Confiserie Sprüngli in Zürich,

where she studied how to make handmade

confections under the guidance of master

confectioners.

‘After I returned from Switzerland,

continuing to work with handmade

confections was the natural choice.’

At that time, our handmade confection

department was still quite small and

everything was done by hand. As a long-

term head of department, Majlen had

a hand in everything: developing new

products, tasting ingredients, writing recipes

and packaging confections.

HIGH QUALITY AND FIRST-CLASS INGREDIENTS

These days, Majlen works in the R&D

organisation and her days are filled with

expert tasks in cocoa and chocolate

quality assurance. She has always placed

great importance on the quality and origin

of cocoa. Cocoa must be handled and

processed correctly, and if you don’t have

first-class ingredients to start with, you can’t

make high-quality chocolate.

‘As cocoa grows so far away – on the

DID YOU KNOW THAT

Since 2007, Fazer has been sponsoring the Ivory Coast town of Biéby through the ECHOES (Empowering Cocoa Households with Educa-tional Solutions) programme. Young people in the programme’s farm-ers’ association receive professional cocoa farming training alongside

their regular school studies. By the end of 2010, 548 young people in Biéby had received this training, and they’ve used this knowledge to establish 55 new cocoa plantations with a total of 88,200 cocoa trees.

equator – we cooperate with the World

Cocoa Foundation and other global

organisations in the industry. We invest

a lot in getting closer to farmers, says Majlen.

In Ecuador, Majlen has familiarised herself

with the local culture and farmers’ everyday

lives.

‘The majority of farms are family busi-

nesses that are handed down from genera-

tion to generation. Cocoa farming is often

very primitive, and farmers don’t always

know which factors affect yield. As for all

entrepreneurs, it’s vital for them to make

a decent daily living. Not only have many

cocoa producers never tasted chocolate,

many don’t even know what it is.’

Fazer bought its first batch of certified

cocoa in 2010. The certification system

ensures that cocoa is responsibly produced.

There are several systems in existence, but

they all share common challenges, such

as a lack of traceability and high costs for

farmers. Both consumers and the choco-

late industry are eager to buy responsibly

produced, certified cocoa, but it’s not always

easy to get that message to the farmers.

‘All of us chocolate producers have to

work with the entire distribution chain to

support growers and provide education

for farmers. That way, we can ensure that

cocoa farming is a desirable occupation in

equatorial countries and also guarantee

access to high-quality, responsibly produced

cocoa,’ says Majlen.

M

A tradition bearerMajlen Fazer has carved out a unique career for herself at the family

business founded by her great-great-grandfather. Her family connections to

Finland’s most esteemed brand have been both an advantage and a challenge.

32

Brunow Berndt, b. 1950 Master of Economic Sciences Chairman of the Board of Directors of Oy Karl Fazer Ab 2009–

Fazer Fredrik, b. 1946 Master of Political Science Member of the Board of Directors of Oy Karl Fazer Ab 1987–

Dreijer Anders, b. 1953 Master of Science (Technology) Member of the Board of Directors of Oy Karl Fazer Ab 1994–

Linder Johan, b. 1959 Master of Laws Member of the Board of Directors of Oy Karl Fazer Ab 2000–

Cawén Klaus, b. 1957 Master of Laws Member of the Board of Directors of Oy Karl Fazer Ab 2002–

Hagelstam Leif, b. 1955 Engineer Member of the Board of Directors of Oy Karl Fazer Ab 1996–

Eriksen Ketil, b. 1963Bachelor of Science (Economics)Member of the Board of Directors of Oy Karl Fazer Ab 2009–

Mäkinen Juhani, b. 1956 Master of Laws, lagmanMember of the Board of Directors of Oy Karl Fazer Ab 2006–

Board of Directors

33

Slotte Karsten, b. 1953Master of Economic SciencesPresident and CEO

Karjula Iris, b. 1954Master of Economic SciencesManaging Director, Fazer Food Services

Grönroos Jouni, b. 1965Master of Economic SciencesExecutive Vice President and CFO

Romantschuk Ulrika, b. 1966Master of Political ScienceSenior Vice President, Communications and Stakeholder Relations

Andersen Teija, b. 1957Master of Science (Agriculture and Forestry), eMBASenior Vice President, Strategic Marketing, Brands and R&D

Numminen Markku, b. 1954M.B.A.Senior Vice President, Strategic Sales Development

Heinänen Pekka, b. 1960Master of EducationSenior Vice President, Human Resources

Söderholm Kenneth, b. 1952Master of Political Science, eMBA Senior Vice President, Human Resources Development

Group Management Team

34

AddressesFazer in Finland

Oy Karl Fazer Ab Group Management Fazerintie 6, Vantaa PO Box 4 FI-00941 HELSINKI FINLAND T +358 20 555 3000 F +358 20 555 3119

Fazer Food Services Ltd. Laulukuja 6 PO Box 37 FI-00421 HELSINKI FINLAND T +358 20 729 6000 F +358 20 729 6012

Fazer Bakeries & Confectionery

Fazer Bakeries Ltd. Vantaa bakery Fazerintie 6, Vantaa PO Box 17 FI-00941 HELSINKI FINLAND T +358 20 555 3000 F +358 20 555 3207

Fazer Bakeries Ltd. Lahti bakery Kasakkamäentie 3 PO Box 40 FI-15101 LAHTI FINLAND T +358 20 555 3000 F +358 20 555 3131

Fazer Bakeries Ltd. Hyvinkää bakery Harkkokatu 2 FI-05800 HYVINKÄÄ FINLAND T +358 20 555 3000 F +358 20 555 3207

Fazer Bakeries Ltd. Lappeenranta bakery Myllymäenkatu 29 FI-53100 LAPPEENRANTA FINLAND T +358 20 555 3000 F +358 20 555 3207

Fazer Bakeries Ltd. Oulu bakery Ratamotie 10 FI-90580 OULU FINLAND T +358 20 555 3000 F +358 20 555 3207

Fazer Bakeries Ltd. Seinäjoki bakery Päivölänkatu 32-34 FI-60120 SEINÄJOKI FINLAND T +358 20 555 3000 F +358 20 555 3207

Fazer Bakeries Ltd. Turku bakery Kaarikatu 8 FI-20760 PIISPANRISTI FINLAND T +358 20 555 3000 F +358 20 555 3207

Fazer Bakeries Ltd. Ulvila bakery Sammontie 22 FI-28400 ULVILA FINLAND T +358 20 555 3000 F +358 20 555 3207

Fazer Mill & Mixes Kasakkamäentie 3 PO Box 40 FI-15101 LAHTI FINLAND T +358 20 555 3000 F +358 20 555 3141

Fazer Confectionery Ltd Fazerintie 6, Vantaa PO Box 4 FI-00941 HELSINKI FINLAND T +358 9 876 21 F +358 9 876 2267

Fazer Confectionery Ltd Valtakatu 2 PO Box 130 FI-53101 LAPPEENRANTA FINLAND T +358 5 671 60 F +358 5 671 6309

Fazer Confectionery Ltd Yrittäjäntie 54 FI-03600 KARKKILA FINLAND T +358 9 3478 660 F +358 9 3478 6690

Oy NIS-Nordic Industrial Sales Ab Fazerintie 6, Vantaa PO Box 4 FI-00941 HELSINKI FINLAND T +358 9 875 1399 F +358 9 876 2272

Fazer in Sweden

Fazer Food Services AB Lindhagensgatan 120 PO Box 30170 SE-104 25 STOCKHOLM SWEDEN T +46 8 470 7200 F +46 8 470 7201

Fazer Bakeries & Confectionery

Fazer Bageri AB Lindhagensgatan 120 PO Box 30171 SE-104 25 STOCKHOLM SWEDEN T +46 8 470 7300 F +46 8 470 7301

Fazer Konfektyr AB Lindhagensgatan 120 PO Box 30172 SE-104 25 STOCKHOLM SWEDEN T +46 8 1220 50 00 F +46 8 411 27 62

Fazer Bageri AB Eskilstuna bakery Fröslundavägen 1 PO Box 5025 SE-630 05 ESKILSTUNA SWEDEN T +46 16 16 1300 F +46 16 16 1302

Fazer Bageri AB Lidköping bakery Kartåsgatan 3 A SE-531 40 LIDKÖPING SWEDEN T +46 510 82 950 F +46 510 28 443

Fazer Bageri AB Lund bakery Annedalsvägen 4 SE-227 64 LUND SWEDEN T +46 46 38 56 00 F +46 46 38 56 01

Fazer Bageri AB Lövånger bakery Hökmark 114 SE-930 10 LÖVÅNGER SWEDEN T +46 913 20 070 F +46 913 20 121

Fazer Bageri AB Umeå bakery Lagervägen 20 PO Box 3040 SE-903 02 UMEÅ SWEDEN T +46 90 10 98 00 F +46 90 10 98 53

Fazer in Russia

OOO Fazer Food Services Business center „Komplektplus“ Ul. Marata 82 RU-191 119 ST PETERSBURG RUSSIA T +7 812 331 1850 F +7 812 331 1851

Fazer Bakeries & Confectionery

OAO Hlebny dom Ul. Smolenskaya 18 A RU-196 084 ST PETERSBURG RUSSIA T +7 812 493 8300 F +7 812 493 8313

OAO Hlebozavod Murinsky Ul. Olgi Forsh 10 RU-195 276 ST PETERSBURG RUSSIA T +7 812 449 7800 F +7 812 449 7813

OAO Hlebozavod Vasileostrovskogo raiona 20. Liniya d. 19, V.O. RU-199 026 ST PETERSBURG RUSSIA T/F +7 812 449 7902 T +7 812 321 4702

OAO BKK Neva Ul. Polevaya Sabirovskaya 32 RU-197 183 ST PETERSBURG RUSSIA T +7 812 313 72 00 F +7 812 430 46 74

OAO Zvezdny Zvezdny bulvar 23 RU-129 075 MOSCOW RUSSIA T +7 495 225 7200 F +7 495 225 7255

Fazer in the Baltic Countries

Fazer Eesti AS Kadaka tee 70 D EE-19087 TALLINN ESTONIA T +372 6 502 421 F +372 6 502 455

SIA Fazer maiznîcas Druvas iela 2 LV-5001 OGRE LATVIA T +371 650 710 40 F +371 650 710 60

UAB Fazer Kepyklos Raudondvario pl. 129 A LT-47188 KAUNAS LITHUANIA T +370 37 360 233 F +370 37 360 266

Fazer Confectionery Estonia c/o Fazer Eesti AS Kadaka tee 70D EE-190 87 TALLINN ESTONIA T +372 6502 421 F +372 6502 487

Fazer Confectionery Latvia World Trade Center Elizabetes 2A Office 438 LV-1340 RIGA LATVIA T +371 703 96 04 F +371 709 96 03

Fazer in Denmark and Norway

Fazer Food Services AS Filipstad Brygge 1 N-0250 OSLO PO Box 1375, Vika N-0114 OSLO NORWAY T +47 2231 1740 F +47 2231 1700

Fazer Food Services A/S Skibhusvej 52 A, 1. PO Box 49 DK-5100 ODENSE C DENMARK T +45 6311 3310 F +45 6311 3320

Internet addresses

www.fazer.com www.fazer.fi www.fazer.se www.fazer.ru www.fazer.ee www.fazer.lt www.fazer.lv www.fazer.dk www.fazer.no

On 17 September 1891, young Karl fazer realised his dream and opened a french-Russian Café at Kluuvikatu 3 in Helsinki. After training in St Petersburg,

Paris and Berlin, he wanted to bring back inter-national taste sensations for Helsinki citizens to enjoy. The café was a success and the fazer bu-siness rapidly expanded to include the producti-on of chocolate and confectionery, and later also bakery products and catering. There was also de-mand for top-quality, delicious products and servi-ces outside finland, so fazer went international by expanding into the other Nordic countries, Russia, and Baltic countries.

This year, fazer will be celebrating its 120th an-niversary and would like to thank all those who’ve contributed to the company’s success: personnel, customers, consumers and partners. Thanks to them, fazer is now a successful global company creating taste sensations in eight countries.

The symbol of fazer’s 120th anniversary is the fazer Rooster. The Rooster, which dates from 1948, is a symbol of tradition, quality and vigilance and was used on products and in marketing up until the 1980s.The rooster used to be a familiar sight on the cover of primers – it lent wings to children learning to read by leaving a tasty reward under their pillows. The Rooster is still around today adorning, for example, fazer’s Sacher cakes.

Let’s celebrate together!

120 years oftaste sensations

faze

r Gro

up’s

Ann

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fazer Group’s Annual Review 2010www.fazer.com