In the summer 2017, Raisio’s Board of Directors approved the revised strategy for 2017 - 2022. The focus on healthy foods, and growth both organically and through acquisitions are at the core of the strategy.
The divestment of the confectionery business in December 2017 was Raisio’s first strategic step towards the focus on its core business, i.e. healthy foods. The Healthy Foods includes Raisio’s consumer brands, such as Benecol and Elovena. On 1 February 2018, Raisio moved from a holding-type structure to a model in which all resources are targeted towards the Healthy Food Division’s organic growth.
At the end of January 2018, Raisio took the second significant step and announced to consider the divestment of its cattle and fish feed businesses as one strategic alternative. Raisio is negotiating on the sale of its feed businesses with several operators.
Highlights in Raisio’s strategy
- Focus on healthy foods.
- Resources targeted to support the organic growth of the Healthy foods Division.
- Increase investment in the brands and product development.
- Divestment of feed businesses considered as a strategic alternative.
- Activeness in acquisitions supporting the strategy.
Raisio is a net debt free company with net cash of EUR 105 million at the end of 2017. Raisio seeks growth both organically and through acquisitions fitting with its core business. Together with the already strong balance sheet, the proceeds from the confectionery business deal allow extensive acquisitions.
We have identified a number of growth opportunities while working on our strategy. We have also looked critically at our opportunities and taken into account the increasingly rapid change in the operating environment.
Revised strategy and growth drivers:
- Investment in the brands and product development.
- Expansion into new product categories.
- Expansion into new markets.
Our revised strategy is based on Raisio’s strengths. We have long been on the right track and identified the key trends for the future. Healthy foods and responsible branded products meeting the customer and consumer needs are at the core of the revised strategy. What is new in our strategy is our determination in the expansion into new markets and new product categories as well as the ability to launch new products faster. With these measures, we ensure our opportunities for profitable growth.
Target-oriented brand work contributes to the growth of Benecol. The brand strategy focusing on well-being, understanding consumer segments, digital opportunities as well as investments in marketing and cooperation with health-care professionals support Benecol’s organic growth. Benecol novelties in new product categories will make cholesterol-lowering easier and tastier. We will take determined measures to enter into new markets.
Raisio’s strong oat expertise is the growth driver in foods. Healthy, plant-based, responsibly produced branded products in line with consumer needs will be launched in new markets. Our range will be expanded into new product categories, such as meals and meal components. Raisio will launch snack products made of Finnish oat in Northern Europe.
Raisioagro’s competitiveness is based on a superior customer experience including innovative feeds and feeding solutions, customer service and digital services. Exports of cattle and fish feeds particularly to the neighbouring countries of Finland will be strengthened; the greatest growth potential is in Northwest Russia. Environmentally friendly fish feed innovations support growth of the fish farming industry.