Fazer Group is buying Finnish biscuit production of Kraft Foods (NASDAQ: KFT). The deal covers brands such as Jyväshyvä, Carneval, Suklaalehti, Muro and Hangon keksi. The company foresees opportunities to grow the offering by also utilizing its iconic chocolate and candy brands aka confectionery brands. Following a substantial increase of tax of candies, which did not include biscuits/cookies, many manufacturers have introduced new cookie brands.
Fazer has shown ability to spread out of its comfort zone, with successful launches in ice cream category and was previously producing biscuits until through mergers and ownership changes of the family business led Fazer Keksit (now LU Suomi) to Danone. Fazer subsequently returned into an independent company.
Fazer targets 25% of the biscuit market in Finland. All of the 87 Kraft Foods employees will continue to work under Fazer. Financial details were not disclosed. The deal should close by early November with product sales, equipment and machinery in Vantaa transferring to Fazer at that point.
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