Raisio has signed an agreement to form a strategic alliance with Italian company Dr. Schär AG, a global food company specializing in gluten-free foods. Raisio is a forerunner in cholesterol-lowering functional foods and an expert in Finnish oats. According to the announcement, the combined expertise of the companies opens new commercial opportunities for both.The long-term framework agreement outlines the essential contents of the strategic alliance. The companies are exploring opportunities for extensive collaboration in product development and manufacturing.
The announcement comes at a time when oats are in the spotlight after a new initiative aimed at promoting oat consumption and boosting the export potential for high-quality oat products made by the Finnish food industry gets underway. As a nutritional, sustainable ingredient, oats and oat-based products hold significant global potential – and now thanks to the OatHow project, headway could be made to bring oats further to the fore.
Raisio is a Finnish company that makes cereal products, animal feeds and engages in life-sciences. The headquarters are located in Raisio, Finland. Finland is reportedly one of the world’s largest oats producers with oats consumption per capita around 7.3 kg. The health-promoting properties of this ingredient are well-known in the country and oats are applied to a diverse range of uses, particularly as a raw material for innovative food products.
Raisio and Dr. Schär note that this strategic alliance creates added-value for both companies. The collaboration also opens new opportunities for Raisio’s Benecol and Elovena brands, in Dr. Schär’s strongest markets, particularly in Germany, Italy, France and Spain. Oats are touted as being safe for those needing to follow a gluten-free diet.
“With its clear focus and high expertise in the markets of value-added products, Dr. Schär is an excellent partner for Raisio. Dr. Schär’s strong foothold in Europe complements Raisio’s geographical presence,” Raisio President and CEO Pekka Kuusniemi notes.
“The strategic alliance with Raisio is an important step for us as it will enable us to develop further and strengthen our distribution network. In addition, Raisio’s value brands will complete our portfolio and we will get access to Raisio’s excellence in oats. As a family-owned company, it is important for us to know that the companies share the same core values,” says Dr. Schär CEO Ulrich Ladurner.
Dr. Schär has been developing gluten-free products since 1922. Since 2014, it has expanded its area of activities by developing and commercializing products in the field of medical nutrition. The company has 1270 employees and ten production plants, with net sales amounting to €360 million (US$403.3 million) in 2018.
In August 2018, it is reported that Raisio was targeting renewed growth for its international brand Benecol, with an increased focus on marketing products featuring the cholesterol-lowering plant stanol esters. The strategy included a €2 million (US$2.3 million) marketing investment in the brand during Q2 of 2018, and the opening of a new entity to serve the strong Irish market, as well as the launch of product innovations, including a new cereal bar line which also uses the ingredient.
In May 2018, Raisio published its interim report for the first quarter of 2018 stating net sales of €67.8 million (US$76 million) while comparable EBIT was €7.4 million (US$8.3 million), accounting for 10.9 percent of net sales. The company went through some group structure renewals, including two divestments in confectionery and cattle feeds business.
And in late 2017, Raisio agreed to sell its candy business to Valeo Foods, and signed an agreement to sell its cattle feed business to Lantmännen Agro Oy.
