Fazer acquires Swedish breakfast cereal maker Frebaco

Fazer Group has purchased Frebaco, a Swedish miller and branded muesli and breakfast cereal maker, for an undisclosed sum.

This purchase will double Fazer’s oats production capacity and help it access Central European markets and Asia.

Fazer Group president and CEO Christoph Vitzthum said: "We are continuing our growth strategy and strengthening our position, both in Sweden and in oats.

"During the past few years, we have already invested 15 million euros in Finnish oats. With this acquisition, Fazer will be a player in the international milling business."

Due to health and wellbeing trend, consumer demand for oats is growing worldwide. To address this, Fazer constructed an oat mill in Lahti, Finland, in 2013.

More than 50% of Fazer’s net sales from oats come from exports to 30 countries.

The recently launched value-added oat ingredients, oat beta-glucan; oat protein and oat oil, are aimed at the global market.

Fazer Mills business head Heli Arantola said: "Oats are an international success story for our milling business. Fazer and Frebaco have both been working with R&D and product development of oats in cooperation with universities and scientists.

"Now we join forces for an even deeper know-how of this Nordic super grain. We will also enter the retail channel in Sweden with Frebaco’s consumer products."

Located in Lidköping, Sweden, Frebaco has an oat, wheat and rye mill. The company produces Frebaco Kvarn branded organic products, which comprise muesli, porridge and breakfast cereals.

All the grain used in Frebaco’s products is claimed to be cultivated locally in the Västgötaslätten area.

Frebaco managing director Stefan Hollerup said: "Oat-based products are rapidly growing in the food industry and consumer markets. We see Fazer as a new owner that provides the right prerequisites for the further development of Frebaco’s operations."