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Consumer brands, Western Europe

Raisio's major product groups in the UK market are breakfast cereals, cereal, protein, diet and snack bars and savoury snack products. The UK is the largest market area for Raisio's Brands Division. Raisio's main owned brands are Honey Monster, Harvest Cheweee and The Dormen Food Company. Raisio is also a significant producer of snack bars made under its customers' brands.

Main events in 2013

  • Sales in snack bars developed well in 2013. Particularly good sales were seen in products made under the partners' brands.
  • Sales fell in the company's own breakfast cereal and snack brands. The most significant factors behind this were price increases in breakfast cereals, lower promotional levels and consumer concerns regarding levels of sugar consumption. Corrective actions have been initiated.
  • To improve efficiency and quality in production, Raisio decided to centralise the snack bar production of the Tywyn factory to the Newport factory in the autumn 2013. The production transfer has been completed and the production in Newport is expected to get up to speed during the first quarter of 2014.

Operating environment

Due to lower and less frequent promotional activity, significant price increases and falls in consumer demand in the UK, sales in Raisio's breakfast products fell when compared to the previous year . The breakfast cereal market is still heavily promoted and this drives consumer purchasing choices. Brands generally continue to perform well in the cereal bar market.

Year 2013

As part the improvement plan for the Division, Raisio decided to centralise the snack bar production from the Tywyn factory to the Newport factory in South Wales in August 2013. The production transferred on time but due to the requirement for ongoing production from Newport, service level to a number of customers was reduced.

Major expansion investment at newport factory

Newport's production will fully recover during the first quarter of 2014. The Newport factory is now among the largest and most flexible snack bar producers in Europe. Our extensive investment will increase production capacity and significantly improve growth potential.

More than half of Raisio's breakfast cereal, cereal bar and savoury snack product range is our own branded products, of which Honey Monster is the largest. Other well-known brands include Harvest Cheweee, The Dormen Food Company and The Good Grain Company. Raisio is a major producer of retailers' branded products as well as a producer of products sold under the partners' brands.