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With bread allsorrows are lessMiguel de Cervantes, Don Quixote
4Who we are
6CEO Statement
10Tasty, healthy, fast and fresh
12Competitive power with bread
14Philosophy of the bakery
16Experts in whole grain
18Looking into the bakeries of the future
20International scope
Ingredients
Lantmnnen UnibakeBakery Report 2011
Printed in 3,000 copies.March 2011
Editor: Monica Klepp Bjerrum,Lantmnnen Unibake.Local parts edited in local units.
Design: DatagrafPrint: Datagraf AS
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The Lantmnnen UnibakeCorporate Structure
CEO: Bent Pultz Larsen
Frozen Bread Business
Production Denmark Sweden Norway Finland United Kingdom Germany Belgium Poland Hungary Russia USA
Sales ofces Spain Holland France
Bakehouse, UK Australia South Africa
Partly owner Japan
Associate Koreacompany
Fresh Bread Business
Denmark Production Poland
Estonia (Leibur)
CorporateSupport Functions
Part of theLantmnnen Group
Board
President & Group CEO
Legal affairs
AgricultureSector
MachinerySector
EnergySector
FoodSector
LantmnnenUnibake
LantmnnenKronfgel
LantmnnenCerealia
LantmnnenDoggy
Strategy & BusinessDevelopment, R&D
Who we are
Owned byLantmnnen
Lantmnnen Unibake is owned bySwedish Lantmnnen, which is one of the
Nordic areas largest Groups within food, energyand agriculture. The Group, owned by 37,000
Swedish farmers, focuses on R&Dand sustainable development to be astrong and long-term partner, taking
responsibility for the entire chainfrom eld to fork.
3,894 Employees 18 Countries 26 Bakeries 733 mEuro turnover 201083 Bakery lines 400,000 Tonnes of bread each year
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Lantmnnen Unibake is a leadinginternational bakery group withexpertise in frozen and fresh bakeryproducts for foodservice and retail.
We solve tomorrows challenges inthe bakery business and set newstandards for possibilities with bread.
All based on a desire to bake pleasureinto peoples lives.
Our aim is to make bread a prot-able business for our customersthrough high quality products andsuperior solutions.
What we doFrom our 26 bakeries mainly situ-ated in Europe and supplemented
by overseas production in USA weoffer a full range of bakery productsfor in-store bakeries, service stations,restaurants, cafs, hotels, coffeeshops, canteens, retail chains, cater-ing and food service companies.
All products are based on ancientbaking traditions and a strong phi-losophy about trustworthy raw ma-terials, world class food safety andthe optimal baking conditions tocreate high quality bread.
The assortment covers all mealsaround the clock comprising Danishpastry, croissants, fast food bread,soft dough products and all types ofbread and consumer-packed breadfor retail. 75 % of our turnover issold for bake-off ready to be bakedand freshly served at the customers.
We do it The Unibake WayLantmnnen Unibake has developed
into a large, international bakerygroup, taking responsibility and get-ting things done with a straightfor-
ward and uncomplicated attitude. We call it The Unibake Way, whichmeans that
1. We keep our promisesTo our customers, employees, own-ers, suppliers and the world aroundus.
2. We keep it simpleOur attitude is uncomplicated andso are our solutions.
3. We are entrepreneurs With individual commitment, localinitiatives and global cooperation wemake new ideas come alive.
The Executive Management Team (from left): Magnus Krook (Division Director Germany),Peder Christensen (Chief Operations Ofcer), Brian Guldbrandt (Chief Business Ofcer),
Stine Aare Jensen (Chief Financial Ofcer), Bent Pultz Larsen (Chief Executive Ofcer), PeterHermes (Chief Commercial Ofcer), Erik F. Nielsen (Chief Strategy Ofcer, Vice President)
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Since Bent Pultz Larsen got thiskayak as a present from the staff for
his 60th birthday it has been a favouritehobby for the busy CEO. A wonderful
trip around the bay an early summermorning is the best time for reection.
It is even better than golf,says Bent Pultz Larsen.
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The second year of a recession tendsto be difcult to handle. By com-
parison, the rst year is easy, wheneverybody is focused on change, andit seems rational to pull the brake.The second year is different, and2010 was a second year.
Focused on the business and tunedin on the signals from the market,
we have been leading LantmnnenUnibake through the recession andinto a future, which offers a widerange of possible scenarios. Some-times it feels like all known para-meters have suddenly been turnedupside-down. The prices of rawmaterials uctuate dramatically, ex-change rates undermine the prot,families change their values and theirbuying habits. And all this makesme conclude that we have never seenmore potential opportunities for
the watchful and the skillful thanright now. The ipside of the coinis the huge challenges looming, andgenerally it is fair to say that it hasbecome harder to earn a prot bymaking bread.
2010 was a reasonable year We have done quite well in 2010
under the given circumstances. Weare not fully satised with the result,but nevertheless we have come quiteclose to our goals.
During the year we have acquiredtwo new companies to our business.
As part of the internationalizationof our bakery structure we have in-vested in a fast food bakery in Hun-gary, reinforcing our position in theCentral European market. The newbakery in Hungary secures us anideal production platform and directaccess to a well-established sales anddistribution network throughout theCentral-European region.
In 2010 we also became the majo-rity shareholder in Bakehouse, UKsleading supplier of sweet and sa-
voury pastries and specialty breads. With Bakehouse we got emergingbusinesses in Australia and South
Africa. The acquisition made the UKour biggest market.>
Unibakeon the right
course
Despite the difficultmarket situation weare happy to note thatwe have succeededin increasing themarket share inseveral importantmarkets andsegments.
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New bakery structurebeing implementedThe erce competition and theuctuating exchange rates make itmore important than ever to bakeour bread and pastry close to thecustomers. Therefore we have starteda major restructuring of our bakingfacilities to bring us closer to themost important markets. In England
we are close to opening a brand newbakery featuring all the modern pro-
cess technology that will enable usto deliver locally produced Danishpastry to the British market.
The new baking capacity in the UKmeans that we will close down theFristrup-bakery in Denmark andmove the majority of the produc-tion to the new bakery in Bedford.Furthermore, we have closed downthe bakery in Glostrup, Denmark,
moving the production of fast foodproducts to Finland, Germany andHungary.
2010 has been characterized by anumber of internal development pro-
jects. First and foremost we are in theprocess of implementing an interna-tional ERP system that will connectall business units and support ourphilosophy of ONE Unibake. Fur-thermore, we have carried out LEADprojects in 11 bakeries and the rest ofour sites are planned for 2011.
Market development step by stepThe nancial crisis and the ensuingrecession have resulted in changingconsumer habits and new require-ments from the customers. Con-sumers are increasingly acting as
professional buyers, planning theirshopping in detail, and making stra-tegic choices. Consumers prefer thesame high quality as ever, but waitto buy the products until they get adiscount. Hard discount stores are
sprouting everywhere, and down-trading to cheaper goods is also asignicant trend.
B2B customers bear the brunt inthe crisis-ridden market. A decreasein travelling in almost all marketsand the conversion into discountare general trends. Customers arecutting down inventories, investingin efcient logistics solutions and re-ducing the number of suppliers.
The market for bread is impactedby the recession. However, bake-offin particular is expected to growin the future. Traditional fast foodis stagnant at the moment but ex-pected to grow when the EasternEuropean countries are back on theirfeet, and new fast food products likesandwiches and savouries are also ex-pected to grow.
Despite the difcult market situation we are happy to note that we havesucceeded in increasing the marketshare in several important marketsand segments.
I would like to highlight the pro-gress and good results in Russia andPoland, which support our decisionto invest in Hungary. Despite the re-cession in the UK the future in thisimportant market looks good withour new set-up. Our activities in theUS develop according to plan with alot of promising opportunities. Du-ring 2010 we divested our businessunits in Japan and Korea to focusour business in Europe and North
America. However, we still sell a lotof products to Asia through new co-
operation constellations. A promising outlookI am an optimist as regards thefuture. We do our best to keep oureyes wide open to be able to react
quickly to important trends andchanges in the market. Flexibility isour trade mark, and I am sure thatthis special ability will make us oneof the winners in the bakery busi-ness. We are investing in the rightdevelopment projects, which willmake us even stronger and morecustomer-driven, and my greatest
worry is whether we will be able toinvest enough to match the demandsof the markets.
Last year we initiated our ONEUnibake strategy to create an evenstronger and more united bakerygroup.
The people in Lantmnnen Unibakeare great, and we are a good family. Ienjoy the spirit and the enthusiasmof the organization, and I am con-dent that our ambitious strategy will
bring us safely into the future. All ofit to remain the customers preferredsupplier and one-point of contact.
Bent Pultz LarsenCEO Lantmnnen Unibake
>
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Fresh/frozen
Frozen 75%
Fresh 25%
Countries
Wheat Bread 32%
Fast Food 29%
Rye Bread 11%
Danish Pastry 11%
Croissants 8%
Other 9%
Categories
Denmark 29%
UK 16%
Sweden 11%
Norway 10%
Belgium 6%
Germany 5%
USA 6%
Poland 6%
Rest 11%
Sales
Finance
478.0Net Sales
mEURO 2006 2007 2008 2009
595.6 725.7 727.3 733.8
2010
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Arjan de Boer from the trend agencyShoot my Food, publishing the FoodInspiration Magazine, travels aroundthe world to map the most recentdevelopments in the eating habits ofconsumers. With his camera and hisnotebook he roams the streets of cities
worldwide, visiting fast food restau-rants, gas stations, and hotels to trackdown what is important to consumersright now. All over Europe the devel-opment in consumer trends seem tobe similar. But what do they look like?
Sustainable food According to Arjan de Boer theyounger generations in particular areconcerned about the sustainability oftheir food. They care about the impactof food production on climate andnatural resources. They are concernedabout the increasing number of peoplethat the planet has to feed. They wantto have condence in the companiesthat produce the food they eat; theyare concerned about animal welfareand child labour. In other words, theyexpect sustainability in the whole value
chain from cradle to grave.Slow food served fastConsumers are tired of unhealthyfast food. On the other hand theyhave less and less time.
Apparently a paradox, but thesituation opens new opportunities,says Arjan de Boer. The art is toput effort into the preparation andthen make it easy for people to enjoythe meal on the go. He underlinesthe small things that can make the
whole difference. A high-quality napkin, big
enough to avoid crumbs from the
bread all over the car. All-in-onesolutions for breakfast, which moreand more people take on the way to
work so that it is easy to handle afreshly baked croissant, some fruitand a cup of good coffee at the same
Trends Tasty, healthy,
fast and fresh Arjan de BoerTrendsspotter f romShoot my Food
The trick is to makeit easy for the con-sumer to handle
a freshly bakedcroissant, a cupof coffee and amobile telephone atthe same time onthe way to work.
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Fresh, healthyand tasty products
elegantly presentedappeal to women
time. Therefore the packaging is soimportant. When you buy a quickmeal it has to be like receiving a gift,premium quality and care inside andoutside, says Arjan de Boer.
The concept of slow food alsocomprises a desire for healthierproducts. High nutritional value,few empty calories and few ad-ditives. This is why whole grain
products are on the rise acrossEurope. Baked with white wheatand with the right mix of our,
whole grain bread is fast becominga favourite among health-consciousconsumers, even in countries that
do not have a strong tradition for whole grain.
The feminine gas station While more and more customersat the gas stations are women, theambience and assortment of the gasstations still mostly appeal to men.Consequently, women ee the gasstations as quickly as possible, leav-
ing a lot of lost opportunities be-hind. Fresh, healthy, and tasty prod-
ucts, elegantly presented appeal to women. Shopping at gas stations isvery much based on impulse, and
traditional fast food does not ap-peal to women. On the other hand,freshly baked bread is a winneramong the women, says Arjan deBoer.
He also studied trends at hotels. What he sees is an increasing de-mand for self-service.
- Hotel guests want to eat, whereand when it suits them. It is ok if
you have to do something yourselfto x a snack or a light meal if youarrive late if the assortment andfacilities are clean and inviting, andthe food on offering is fresh anddelicate, says Arjan de Boer.
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Philosophyof the bakeryMost people have an opinionabout the quality of bread.That is good. We are happy
when people are interestedin good bakery products,since it is our passion.
Please join us on a journeyinto the philosophy behindour products together withve specialists.
Palle Kjr Pedersen, Innovation Manager, Lantmnnen Unibake Denmark
Every product starts in the artisan bakeryEvery new bread or pastry product has been created by a passionate baker who loves his craft. Withprofessional pride, creativity, expertise and pure craftsmanship we develop every detail of the products:the crust, the crumb, the shape, the colour, the smell, the taste, the texture. We make everything fromscratch, and it always starts in our artisan bakery. Here we develop thousands of new bread and pastrytypes every year. Only the very best are transferred to the bakery lines, where we apply the exact samecare and principles only in larger scale. It is extremely rewarding when our experiments result in a ow ofthousands of perfect copies from the bakery lines.
Mette Kann, Corporate QualityDirector, Lantmnnen Unibake
Much can go wrongin a bakeryThis is why food safety has the highest prior-ity at Lantmnnen Unibake. Through decadeswe have rened and developed our routinesand systems to fulll the strictest require-ments from customers around the world.At our bakeries we manage the ingredientscarefully, we keep the bakeries clean andtidy, we control all processes in every detail,and we run our business with extraordinaryhigh levels of hygiene. All suppliers haveto sign our Supplier Codeof Conduct. We havequality managers in allbakeries, who makesure that production iscarried out accordingto our standards everyday. Furthermore, wedevelop our quality andfood safety procedures ona continuous basis to evenhigher standards.
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Peder Christensen, Chief Operations Ofcer,
Lantmnnen Unibake
Bake off means freshGood bread is made from good ingredients. It is as simple as that.We can only bake our high quality products when we work withhigh quality ingredients. Our requirements to quality, taste and ba-king characteristics are so high that only the very best ingredientsmake it to the bakery. We quick-freeze the products straightfrom the oven, before the ageing process in the bread setsin. This is the key to completely fresh products, readyfor bake off when the customers want a delicious bite.Bake off offers the opportunity to bake around the clock,adjusted to sales and demands so that the products arealways freshly baked.
Piet Van Beveren, R&D and Quality Director, Lantmnnen Unibake Benelux
Sensing the dough means everythingIn the bakery all physical circumstances affect the quality of the bread: the weather, the humidity, theour, the quality of the ingredients, the machinery and the temperature. No robots can ever do thiswork. Our bakers constantly adjust the baking process with expertise and precision according to thecircumstances. There is a human being behind every product, assisted by modern technology to moni-tor, measure, scan and transport the thousands of products that ow from our bakeries every day.
Anders Frberg,
Service Concept Consultant,Lantmnnen Unibake
Intelligentconvenience thekey to good resultsWhen I travel around the world teaching ba-king techniques, decoration and presentationof the Unibake products, I am proud of thequality that Unibake represents. We make thesame products millions of times, and even sothey always have the same look, taste and
shape. The customers can trust usto provide the quality they expectwhen they open a carton fromUnibake. Convenience is impor-tant elements in the develop-ment process. Uniform bakingtimes and baking temperaturesfor most of the products makeit easy, and decoration glazingand syrup included withthe pastries that isquality to me.
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Focus on natural health and tasteLantmnnen Unibake has highlyspecialized competences in utilizing
whole grain and other raw materialsfor maximum health and taste.
Whole grain is not just one thing. We constantly develop new breadtypes, which would never have beenrecognized as whole grain just a fewyears ago. We can do this because
we can combine the raw materialsso that the bread achieves the rightnutritional balance, while preserving
the premium taste, says Tina.
Among other things, LantmnnenUnibake cooperates with the grainmills to develop new ways of grind-
ing and to create new combinationsof grain types.
Traditionally, whole grain bread ismade from wheat and rye, but weare also considering barley, whichhas promising properties whenmixed with other grain types. Thetrick is to nd the right balance, al-
ways keeping the good taste and thenatural health as the core elements,
says Tina Lindelv.
Experts in
whole grain
Tina Lindelv is Innovation Man-ager in our fresh bread division,Schulstad in Denmark. She hasworked with innovation and pro-duct development for 10 years andis one of our key experts in wholegrain. During the years she has
seen the bread market develop and
many trends come and go.
The whole grain trend has beenaround for several years and seemsto be growing stronger. From ourdialogue with the customers we seea clear trend towards healthy breadtypes with whole grain. This is verypositive due to the proven healthbenets of the bre, vitamins andminerals that characterize wholegrain, says Tina Lindelv.
Tina LindelvInnovation Manager,Lantmnnen SchulstadDenmark
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We have just launched a revolution withinthe rye bread category. Through innova-tion we have succeeded in developing ryebread that combines all the healthy quali-ties of the traditional rye bread with thesoft and airy quality of white bread. Weexpect a lot from the new bread whichfulfills the dreams of many consumersabout the perfect bread.
Increased focus on health has made whole grain one of the strongesttrends in the bread market. Overthe years, consumers have becomemore and more aware of the nutri-tional benets of whole grain andtoday, the demand for whole grainproducts is bigger than ever.
Alongside the increasing demandfor whole grain, consumers chal-lenge the bread industry to comeup with new, healthy and tastyproducts. At Lantmnnen Unibake
we invest a lot of work in develop-ing the whole grain category.
In Scandinavia whole grain hasbeen an integrated part of the diet
for centuries and its benets are ac-knowledged. But whole grain is nolonger restricted to Scandinavianconsumers; on the contrary, we see
whole grain breadnding its way tothe plates of moreand more consum-ers in countries
where wholegrain is not part ofthe tradition.
One of the reasonsfor the success of
whole grain isthe fact that wedevelop new pro-ducts that meetthe taste of people,
who do not yet havea tradition for bread
with seeds and the red,
slightly bitter wheat which is often usedin Scandinavia.
Pushing the limits We are constantly testing differentour combinations and pushing thelimits for how much whole grain wecan use in bread and still keep thegood taste.
Today we can bake whole grainbread which has almost the sametaste and texture as traditional whitebread. Our Levebrd Fuldkornsbrdfrom Lantmnnen Schulstad for
example contains 45 % whole grain, which is more than most rye bread. At the same time it offers the cha-racteristic mild taste and the whitecrumb that consumers love about
wheat bread, says Tina Lindelv.
The healthy trend
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The requirements to the efciency ofthe bakeries are growing all the timeas are the requirements to the qualityof the products. This means that wehave to constantly develop and reneour production. Never before have
we been so ambitious as regards ourproduction facilities, never before have
we invested so much in so many largeprojects and never before has the fu-
ture looked more promising.
Structured processes with LEADLEAD, which is the Lantmnneninterpretation of Lean, has been im-plemented in nearly all bakeries, andthe rest are planned for 2011. Theimplementation of LEAD makesthe bakeries more professional withmore structured work processes. Theemployees are deeply involved in theLEAD projects at their bakeries, andthe active involvement has increasedthe motivation in the daily work,improved the working environmenthas also reduced absence due to sick-ness.
Besides the normal content of suchprojects we have added an extra di-mension, which we call bottleneck
analyses. This is where we work with process innovation to developtailored, intelligent solutions thatmake us even better at details. Weinvestigate the details of the produc-tion and map the areas where we by
adjusting small things can becomeeven better.
Transparent supply chain with new ERP systemDuring 2010, we have developeda new all-comprising ERP system
which will enable us to work seam-lessly together across functions andcountries. The purpose of the newsystem is to achieve more transpar-ent processes, especially within thesupply chain. The system will be putinto operation in the rstcountries during 2011,and after that theimplementa-tion will berolled out inour businessunits world-
wide. Theproject willleverage newopportunities
within logisticsas well.
New levels of food safetyFood safety has always enjoyed toppriority in the business model ofLantmnnen Unibake, and during2010 the effort in this area becameeven more visible with the new stra-tegy. During the year all Europeanbakeries were BRC certied, andthe goal is to achieve grade A every-
where. In 2011 we expect USA on
this level too. Furthermore, we havedened a number of extra require-ments in our food safety manual,among other things strict require-ments to safety equipment and ex-tremely high hygiene requirements.The goal is to implement the foodsafety manual in all bakeries before2013.
Climate from mindset to action As part of the Lantmnnen Group we have set a goal to reduce ourCO 2 emissions by 33 percent before
2020. To reach this goal wehave to focus on reducing
the energy consump-tion of the produc-
tion and simplifyingthe logistics. We arein the process of
developing a CO2toolbox for pro-duction, which all
units will implement.The climate challenge
is complex and we have
Looking into the bakeries
of the future
By 2020 wewill reduce our
CO2 emission by
compared to 2009 33%
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made a strict prioritization to go for
results that benet the environmentas well as the business.
We have also made a climate declara-tion for our ten biggest products tobe able to determine where we havethe highest potential for improve-ment.
Talented peopleTalent and competence are neededto lead an international food com-pany with high ambitions likeLantmannen Unibake. Therefore,
we have made talent management apriority. Currently we are mappingthe talent potential of the company,and we are offering international ca-reer paths to the employees. The key
words of the ONE Unibake strategyas regards HR development are de-
velopment, knowledge sharing andinternationalization.
R E L
I A B I
L I T Y
S U S T A I N
A B I L I T Y
F O O D S A F E
T Y
Q U A L
I T Y
ReliabilityWe work systemati cally to im-prove our supply chain in or-der to minimize our productioncosts and optimize our abilityto deliver in any si tuation.
SustainabilityWe have an increasingly strong focus onsustainable practices. Together with theLantmnnen Group we develop sustain-able solutions to reduce our impact onthe climate and the environment.
Food safetyWe never compromise onfood safety. Our systemis ne-tuned to meet theexpectations from even themost demanding customersanywhere in the world.
ProductqualityAll details in the productionprocess inuence the tasteand customer experience.We constantly optimizeall stages and every littledetail to ensure the bestquality product.
Building a newsuper-bakery in the UKThe British love Danish pastry and with our new bakery in Bedford we will get state of theart facilities in this important market. Every corner of the bakery is designed for streamlinedproduction with climate-friendly solutions and the highest level of food safety.
A team of British bakers have been trained by colleagues from Denmark in how to producehigh quality pastry. It is a completely different thing to work with laminated products thanwith bread so transfer of competence is an important part of establishing a new bakery.
Our production philosophy
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International
Lantmnnen Unibake Norway Division Director:Trond AarBakery: Langhus
Number of employees: 106
Lantmnnen Unibake Germany Division Director:Magnus KrookBakeries: Verden,Harrislee, Suhl
Number of employees: 279
Lantmnnen Unibake Poland Division Director:Jacek Gorecki Bakery: Niepore
t
Number of employees: 190
Lantmnnen Axa PolandDivision Director:Grzegorz StupnickiBakery: Poznan
Number of employees: 303
Lantmnnen Unibake Hungary
Division Director:Mrta GalczBakery: Budapest
Number of employees: 44
Lantmnnen Unibake Benelux
Division Director:Jean DinetBakeries: Londerzeel,Mouscron, Brussels
Number of employees: 369
Lantmnnen Unibake Denmark Division Director:Trine EgsgaardBakeries: Hatting,Holstebro, Hasselager,Fristrup, DoenseNumber of employees: 689
Lantmnnen Schulstad Denmark Division Director:Carsten Lyngs ThomsenBakeries: Pandrup,Avedre, ViborgNumber of employees: 733
Lantmnnen Unibake Finland Division Director:Marko LaineBakery: Vantaa
Number of employees: 59
Lantmnnen Unibake The BalticsSales Manager:Franceska KirkilaSales ofce: Riga
Bakehouse AustraliaGeneral Manager:Greg HarnwellSales ofce: Glebe
Lantmnnen Unibake FranceSales Manager:Betrice FregierSales ofce: Miramas
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scopeLantmnnen Unibake RussiaDivision Director: Ekaterina ZaplatinaBakery: Yegorievsk
Number of employees: 119
Lantmnnen Unibake SpainDivision Director:Luis RocaSales ofce: Barcelona
Lantmnnen Unibake Sweden Division Director:Lasse GustafssonBakeries: rebro, Mantorp
Number of employees: 364
Lantmnnen Unibake United Kingdom Division Director:Sren LandtvedSales company: BakehouseBakeries: Milton Keynes,BedfordNumber of employees: 439
Bakehouse United KingdomManaging Director:Tony BrownSales ofce: Bagshot
Lantmnnen Unibake The NetherlandsCommercial Manager:Hans Van Den BoschSales ofce: Driebergen
Bakehouse South AfricaNational AccountManager: Monia ParkerSales ofce: MontagueGardens
Lantmnnen Unibake USADivision Director:Scott Kolinski
Bakery: FloridaSales ofce: Chicago
Number of employees: 143
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The Baker He takes the bestfrom nature, mixes it withknow-how, and adds loveand a little magic.
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