Harri Pulli new Board member of Paulig Ltd
Paulig Ltd’s Annual General Meeting was held on 23 April in Helsinki. The meeting elected Harri Pulli as a new member of the Board of Directors as Vice chairman Eero Heliövaara, who has been a member of the Board since 2009, had chosen to resign.
Harri Pulli has a background in economics and business management. He has worked in senior positions in Kuusakoski Ltd, Baltic Beverages Holding AB and Fazer. He is currently the CFO of Gestamp Hardtech AB.
Harri Pulli is born in 1960 and he is a trained economist from the University of Stockholm. He lives in Finland.
The other Board members continue in their positions and they are: Mikael Aru (Chairman), Mathias Bergman, Christian Hallberg, Christian Köhler, Jon Sundén and Sanna Suvanto Harsaae (elected vice chairman). Robin Hallberg continues as a board observer. Berndt Heikel continues as the board secretary.
Paulig Group achieved good result in 2014
2014 was a good year for the Paulig Group: all the four divisions either achieved or exceeded the goals that had been set for operative results. Net sales were EUR 867.0 million and operating profit amounted to EUR 73.7 million.
Paulig Group achieved a good result in spite of the challenging financial situation in the market. The Group’s net sales increased by 2.0 per cent on previous year to EUR 867 million (849.7). 58 per cent of the total net sales come from the Nordic region and 42 per cent from other markets.
The Group’s operating profit was EUR 73.7 million (75.9), or 8.5 per cent (8.9) of the net sales.
“I am pleased with the past year's result. All our divisions either achieved or exceeded their goals for operative results, which contributed to the Group's good result,” says Jaana Tuominen, CEO.
2014 in brief
- Net sales were EUR 867.0 million (849.7)
- Operating profit was EUR 73.7 million (75.9) or 8.5 per cent (8.9) of the net sales
- Profit for the financial year was EUR 46.8 million (45.5)
- Return on equity was 10.0 per cent (10.4)
- Net debt was EUR -43.4 million (12.6)
- Solvency was 71.2 per cent (69.8).
- The Group had 1,951 employees at year end (1,881)
The Coffee division’s business developed satisfactorily during the year. The division’s net sales were EUR 319.0 million (322.6). The sales volume improved particularly in Russia and the Baltic countries. In Finland, Juhla Mokka and Presidentti maintained their positions as the most popular coffee brands in the country.
Small batches of speciality coffees from micro coffee roasteries have become very popular among coffee lovers all over the world in recent years. During the year, the Coffee division also expanded its operations into this segment with the acquisition of the Robert Paulig coffee roastery and brands. The selection was also expanded during the year, and new packaging was launched at the beginning of 2015.
The World Foods & Flavouring division performed well during the year, and internationalisation of the business proceeded. Net sales were EUR 308.0 million (301.0). The division offers flavourings and various food concepts, such as Tex Mex, Thai, India and BBQ.
Performance was particularly good in the Nordic and Baltic countries. In the UK, the brand switch from the local Discovery brand to Santa Maria was completed during the year.
The Group’s other businesses, Snack Food and Industrial Flavouring, also achieved the goals set for their operations in 2014. The Snack Food division’s net sales were EUR 203.1 million (185.2), while Industrial Flavouring's net sales amounted to EUR 54.7 million (53.2).
Events following the end of the financial year
In February 2015, the Paulig Group acquired Risenta AB. Risenta is a family-owned company with a home market in Sweden. The company, which was established in 1940, specialises in offering delicious and healthy food to people who appreciate a healthy lifestyle. In the last six years, Risenta’s net sales have more than doubled, amounting to approximately EUR 30 million in 2014.
In April, the Paulig Group sold its Industrial Flavouring division to Solina Group, a highly valued company in the industrial flavourings market.
“At the Paulig Group we will now focus fully on consumer goods and foodservice operations within the coffee, international food, spices and snack food categories. We also entered the natural health food category earlier this year with the acquisition of Risenta AB, and we will continue to develop this business,” says Jaana Tuominen.
CEO Jaana Tuominen, tel. +358 9 319 8330
VP Communications Anita Laxén, tel. +358 40 770 0873
About Paulig Group
At the Paulig Group we are united in the quest of exploring great taste. We are a family-owned international company in the food industry. The company was founded in 1876 and is noted for its high-quality products in key sectors Coffee, World Foods & Flavouring, Snack Food and Naturally Healthy Food. Our portfolio includes strong brands such as Paulig, Santa Maria and Risenta. The Group has almost 2,000 employees in 13 countries, and the net sales for 2014 were 867 million euros. www.pauliggroup.com
Paulig Group sells its Industrial Flavouring Division
Paulig Group is selling its Industrial Flavouring division to Solina Group, specialised in ingredient solutions for the food industry. The transaction includes the entire operations of Industrial Flavouring, and is effective as from April 7th 2015.
Paulig Group now sets full focus on its consumer goods and foodservice operations.
Solina Group is a valued player in the industrial flavouring industry. The headquarters are located in France and the company employs 800 people in 15 countries. The net sales are 250 million euros. Solina Group has ten production plants in Europe, and is a supplier of ingredient solutions in more than 35 countries in Europe, The Middle-East and Asia.
– Industrial Flavouring perfectly fit Solina Group’s North European organisation. The business is highly recognised for its service level and product quality and we’re looking forward to working with the management team and the organisation. Industrial Flavouring will benefit from the existing Solina Meat platform R&D as well as the Solina Group structure for international development, says Eric Terré, CEO of Solina Group.
The Industrial Flavouring division focuses on custom-made spice mixes that are developed in close cooperation with customers in the food industry. The net sales of the division in 2013 were 53 million euros and the division employs 150 people in Finland, Sweden, Norway and Estonia.
With more than 2000 products in the portfolio the biggest markets are the Nordics, Baltics and Russia with neighboring countries. All products are manufactured in the production center in Estonia. The plant, located near Tallinn is one of the largest industrial flavouring production plants in Europe and provides services to all markets of the division. Solina Group will continue the operations in the plant as a tenant to Paulig Group.
– As part of Solina Group the Industrial Flavouring division now has an even greater possibility to proceed with its growth strategy outside the Nordic countries. We believe this is a very good home for the business, says Jaana Tuominen, CEO of Paulig Group.
– For Paulig Group, the transaction means that we will focus on consumer goods and foodservice operations within the coffee, international food concepts, spices and snack food categories. We have also entered the natural health food category with the acquisition of Risenta AB earlier this year and we will continue to develop this business, she concludes.
The transaction entered into force on April 7th 2015. The parties have agreed not to disclose the transaction value.
Jaana Tuominen, CEO, Paulig Group, tel +358 9 3198 330, e-mail: firstname.lastname@example.org
Eric Terré, CEO, Solina Group, tel +33 2 99 60 07 60, e-mail: email@example.com
Anita Laxén, VP Communications, Paulig Group, tel +358 40 770 0873, firstname.lastname@example.org
About Paulig Group
Paulig Group is an international company in the food business, recognised for its high-quality brands within coffee, spices, international food concepts, spices, snack food. The group’s well-known brands are Paulig and Santa Maria and the products are mainly sold in the Nordic countries, the Baltics, Russia, UK and Central Europe. Since March 2015 Risenta AB is a part of the Paulig Group.
Paulig Group supplies its products and services to customers in retailing and the Horeca and office sectors. The Group’s net sales exceed 850 million euro and employs 2,000 persons. www.pauliggroup.com
About Solina Group
‘We create Solutions for tomorrow’s Food’
Solina Group is a major actor of the global food ingredients market. With 10 production facilities, multiple R&D centres and local sales offices, Solina services feature personalized ingredient solutions for the Food Industry in the area of meat, nutrition, ready meals and snacks. Solina is also a major actor of the professionals (butchers) and Food service markets. Headquartered in France, the company has around 800 employees and locations in 15 countries. Solina Group is sponsored by IK Investment Partners. The Group’s net sales are over 250 million euro, realized in 35 countries. For further information, please see www.solina-group.eu
Paulig Group investigates preconditions for consolidating Group’s tex-mex chips production
Paulig Group has carried out a pre-study of the overall tex-mex chips production capacity within the group. Based on this Santa Maria AB, a division within Paulig Group, will investigate the preconditions for a possible relocation of the tex-mex chips production from Mölndal, Sweden, to Roeselare, Belgium. Union negotiations will begin in Sweden March 11.
Santa Maria’s taco factory in Mölndal produces more than 5,000 tonnes of tacos, chips and taco shells annually. Continued tex-mex chips production in Mölndal would require significant investments in the machinery and the facility in the coming years. The Mölndal plant currently employs a staff of 81 in three shifts.
“The employees are doing a great job, and the efficiency of the factory has improved steadily in recent years. However, we have been considering alternative solutions for a few years now as we will have to invest in both machinery as well as the factory property in the future. So far we haven’t found any economically viable solutions. As there is free capacity in this segment within Paulig Group, we need to investigate this possibility,” says Johan Sundelin, Managing Director of Santa Maria AB and Head of World Foods & Flavouring division of Paulig Group.
The negotiations will concern the preconditions for a possible transfer of the tex-mex chips production to Paulig Group’s Snack Food division’s factory in Roeselare, Belgium. The Roeselare plant produces approximately 40,000 tonnes of chips and tacos per year, and there is currently capacity for the production of also the Santa Maria tex-mex chips products without the need for significant new investments. The Snack Food division currently employs a staff of 400 in Belgium, of which 320 work in production. The plant manufactures chips, tacos, wrap and tortilla products.
Based on this, Santa Maria AB is launching negotiations with union representatives in Sweden on the preconditions for a possible relocation of the tex-mex chips production to Belgium, which would also mean that the staff would be invited to work in Belgium as the production in Mölndal would be discontinued. These negotiations are expected to continue all spring in parallel with the Group’s evaluation process.
“The process is at a very early stage, but it is clear that a possible transfer of the production would affect the employees. This is something that obviously would be subject to union negotiations. I fully understand the uncertainty that employees feel, but we must have respect for the ongoing investigation and negotiation process,” says Johan Sundelin.
Paulig Group’s key sectors today are coffee, spices and food concepts, and snack foods from different parts of the world. The core of the entire business is good taste and quality products. Paulig Group’s strong brands include Santa Maria (spices and food concepts) and Paulig (coffee). Since 1 March, Risenta AB has also been part of Paulig Group.
Paulig was founded by Gustav Paulig in Helsinki, Finland, in 1876. Paulig Group is still family-owned and based in Helsinki. It has business operations in 15 European countries, and its products are sold in more than 40 countries.
Paulig Group began cooperation with Santa Maria in the early 1990s. In 2010, Santa Maria officially became part of Paulig Group.
Paulig Group’s net sales in 2013 were EUR 850 million. The net sales of the World Foods & Flavouring division (Santa Maria) amounted to EUR 301 million, while the Snack Food division’s net sales were EUR 185 million.
Johan Sundelin, MD Santa Maria AB / Head of Division, World Foods & Flavouring
Tel.: +46 70 855 7013
Anita Laxén, Communications Director, Paulig Group
tel. +358 40 7700 873
About the company
Paulig Group is a family-owned international company in the food industry; founded in 1876 and noted for our high-quality products in key sectors Coffee, World Foods & Flavouring, Snack Food and Industrial Flavouring. Our portfolio includes strong brands such as Paulig and Santa Maria. The group has almost 2,000 employees in 15 countries and the net sales for 2013 were 850 million euros.
The World Foods & Flavouring division of Paulig Group has operations in 12 countries and sales in over 30 markets. The division has a staff of 900 and production in Sweden (spice factory, tex-mex chips factory and tortilla factory), Estonia (spice factory) and Great Britain (tortilla factory). Net sales in 2013 were EUR 301 million.
The Snack Food division of Paulig Group has a staff of 400 and production in Roeselare, Belgium. Net sales in 2013 were EUR 185 million.
The acquisition of Risenta is completed
The acquisition of Risenta AB announced by Paulig Group on February 6th, was successfully completed February 27th 2015. With this Risenta is now officially part of Paulig Group’s and the business continues as a separate division within the group.
Paulig Group acquires Risenta
Interest in delicious and healthy food is currently one of the fastest-growing consumer trends. Paulig Group is expanding its business activities into this category by acquiring Risenta AB.
Risenta is an entrepreneurial company with a home market in Sweden. The company, which was established in 1940, specialises in offering delicious and healthy food to people who appreciate a healthy lifestyle. In the last six years, the company's turnover has more than doubled, and the turnover in 2014 was EUR 30 million.
“We are very impressed with the excellent work that Risenta’s owners and employees have done over the years. The company's management realised the potential in the healthy food category early on, which shows a true pioneering spirit that is strongly present in their business operations. We are happy to welcome Risenta to Paulig Group,” says Jaana Tuominen, CEO.
Risenta is the leading producer of healthy staple foods in Sweden, and its turnover has grown rapidly over the last few years. The company’s products are also sold in Finland. More than 30 per cent of Risenta’s total sales consist of products that were launched in 2010-2014.
Paulig Group’s key sectors today are coffee, flavouring and food concepts from different parts of the world. The core of the entire business is good taste and curiosity about new tastes. Paulig Group’s strong brands include Santa Maria (flavourings and food concepts) and Paulig (coffee). The company was founded by Gustav Paulig in Helsinki, Finland, in 1876. Paulig Group is still family-owned and based in Helsinki. It has business operations in 15 European countries, and its products are sold in more than 40 countries.
Risenta’s incorporation into Paulig Group will cause no changes in staff. Risenta's 34 employees will become Paulig Group employees. The Risenta brand will remain on the products. The company’s current managing director and main owner, Alex Tengwall, will continue to lead the business and will report to CEO Jaana Tuominen.
“We actually had no intention of selling Risenta, and it was a tough decision. But when Paulig Group approached us, we realised that this would be a perfect opportunity to further develop the company. It was important for us that Paulig Group is a family-owned business focusing on taste that carries out its business with a long-term approach,” says Alex Tengvall.
The acquisition is expected to take effect on 28 February 2015. The parties have decided not to publish the purchase price.
Jaana Tuominen, CEO, Paulig Group
tel. +358 9 3198 330
Alex Tengvall, Managing Director, Risenta
tel. +46 703 955 483
Anita Laxén, Communications Director, Paulig Group
tel. +358 40 770 0873, anita.laxen(at)paulig.com
At the Paulig Group we are united in the quest of exploring great taste. We are a family-owned international company in the food industry; founded in 1876 and noted for our high-quality products in key sectors: Coffee, World Foods & Flavouring, Snack Food and Industrial Flavouring. Our portfolio includes strong brands such as Paulig and Santa Maria. The Group has almost 2,000 employees in 15 countries and the net sales for 2013 were EUR 850 million. www.pauliggroup.com
Risenta is a Swedish company and a leading producer of healthy staple foods in Sweden. The company provides a large variety of foods, such as seeds, muesli, special flour, cereals, rice, beans, lentils, snack food, bean pasta, dried fruit and nuts. Established in 1940, Risenta is now in its third generation of family ownership. Since 2005, the head office and warehouse have been located in Sollentuna, Stockholm. www.risenta.se
Paulig has the best image of corporate responsibility in Finnish food industry
Paulig was ranked among the best in a reputation and responsibility image survey conducted by TNS Gallup in Finland. The survey measured the overall reputation and the company image as a responsible player in different industries. We shared a second place with Fazer group in the overall reputation. The public opinion regarding our company’s responsible image in the food industry category was a success, as we were considered to be the best in Finland. The survey was conducted for the fifth time this year. In total 57 companies were analyzed in eight different industries. The response rate was high, with over 9000 respondents and 24 000 corporate valuations.
Top 10 in overall reputation:
- Paulig, Fazer
- Snellman, Google
- Valio, RAY
- Helsingin Energia
- S-ryhmä, S-Pankki
Image of responsibility:
Food industry: Paulig
Finance: OP-Pohjola Group
Energy: Helsingin Energia
Therese Adolfsson nominated as Employer Branding Person towards students
The nominees have been published in the magazine Number One, which have been sent home to students together with career magazine Campus. The magazine will also be distributed with "Dagens Industri" in early October. The winner will be presented at Universum Awards March 11, 2015 in Stockholm, Sweden. The winner will be contacted about a month before the awards ceremony.
The jury based on the following criteria:
- the person's interest in and commitment to employer branding issues
- how well the person has contributed to the management team involved in the issues
- that the company communicates its employer brand in an innovative and credible way
- the company's employer branding activities led to results in, among other things Universe measurements
Employer Branding is the strategy companies use to achieve their desired appeal on current and future ideal talent. An employer brand contains a variety of associations and by influencing these associations one can modify the "employer brand".
Universum offer services and products that help employers attract, recruit and retain ideal talent while helping talent learn about ideal employers. Every year Universum performs the Swedish Student Survey "Företagsbarometern" and it is based on responses from thousands of students at colleges and universities around the country. The results of "FöretagsBarometern" reveal how students perceive organisations as employers in Sweden in terms of future career.
Framtidsforetagen.se features listings and details of Sweden's most popular employers. The lists are based on an annual survey conducted by Universum in over 20 different countries with over 400,000 students.
Paulig Group supports the construction of the new children's hospital with 1.5 million euros
Paulig Group has been a part of the Finns’ everyday life for over a hundred years. The company continues on this track with the donation of 1.5 million euros to the construction of the new Children's Hospital 2017. The donation is paid today, June 6, on the Good Coffee Day.
When Children's Castle Hospital was inaugurated in 1948, Paulig participated in the work.
"We are all parts in a collaborative effort that applies not only to ourselves and our company, but also to the whole of modern society with all its many operating procedures," said the then Managing Director of Paulig Eduard Paulig in the years following the war. In those times, reconstruction was at its most feverish and it required the participation of all operators in society.
In the 1940s Mannerheim League for Child Welfare built the Children's Castle Hospital and received a coffee donation from America. Paulig took part in the teamwork to build the hospital by packaging the unroasted coffee in small, 250g Children's Castle Hospital packages. They were used as prizes in draws that were held at the Stockmann department store in 1945. The prize draws were a success, as coffee was still subject to postwar rationing and heavily in demand. It made an excellent draw for various kinds of collections. A considerable sum for that era was raised – 1.2 million Finnish marks.
Building the future is among the main values
"Children and young people are the main target categories for the Paulig Group's social projects. This is why we want to participate in this unique project. The wish to participate in the New Children's Hospital 2017 project came from both the personnel and our owners. People have remembered the story with the Children's Castle Hospital coffee of the 1940s and asked if we could be involved in such an important project again," says CEO Jaana Tuominen.
"It is often said that a family company's quarter is 25 years. Paulig's donation communicates its social commitment and the values that have evolved within the company over generations. The Children's Hospital has awakened the shared sense of belonging among us Finns, and Paulig's donation is a good example of this," says the chair of the New Children's Hospital Support Association 2017, Anne Berner.
The target set for the collection by the New Children's Hospital 2017 project support association is at least 30 million euros. The donations will be used to build a top unit for specialised paediatric care, which will serve its small customers nationwide. Together with the Paulig Group's contribution, the pot now stands at 28.5 million euros.
CEO of Paulig Group Jaana Tuominen (left) and
New Children's Hospital Support Association 2017, Anne Berner
Anita Laxén, VP Communications, Tel: +358 40 770 0873
New Children's Hospital Support Association 2017
Anne Berner, Chairman, Tel. +358 400 468 180
About Paulig Group
Gustav Paulig founded the company in the heart of Helsinki in 1876. The business idea was to offer people tastes from the world. Today Paulig Group is an international family-owned company in the food industry, known for its high-quality brand products. The business areas are Coffee, World Foods & Flavouring, Snack Food and Industrial Flavouring. The strong brands of the Paulig Group include Paulig and Santa Maria. The Group has almost 2,000 employees in fifteen different countries and net sales were EUR 850 million in 2013.
Paulig to acquire Robert Paulig coffee roastery and coffee brands
Among the coffee-lovers of the world, small batches of speciality coffee have become a distinct trend in the coffee business over the past few years. Paulig will expand its offering also into this segment with the acquisition by Gustav Paulig Ltd of the Robert Paulig small roastery's business operations and the Robert Paulig coffee brands.
Robert Paulig started a small coffee roastery in the Katajanokka district of Helsinki in 1987. Today the roastery operates in Tolkkinen, Porvoo, where it moved into new premises in 2011. The roastery will continue to operate in the same premises after the transaction.
"We Finns are lovers of good coffee and we drink coffee in various circumstances. We will now be able to harness both companies' strengths, and by joining our forces we will have even better opportunities to develop the right kind of coffee for different consumption situations and needs," says Elisa Markula, Head of the Paulig Group’s Coffee Division.
The roastery's operations will continue in a separate company
With the transaction, the Robert Paulig roastery will be transferred to a subsidiary of Gustav Paulig Ltd to be named Oy Robert Paulig Roastery Ab.
"We want to retain the small roastery's special characteristics also in the future which is why the roastery’s operations will continue in a separate company," Elisa declares.
The current Director of the roastery, Carl-Gustav Paulig, will continue to be in charge of sales.
The Robert Paulig brand will complement Paulig's brand portfolio
"People often see the Robert Paulig brands as part of the Paulig brand portfolio, and we think it is great that all Paulig brands are now gathered together under the same roof," Elisa Markula comments.
The Robert Paulig coffee brands also include flavoured special blends, Muumi (Moomin) blends and Watsa coffees. The products will continue to bear the Robert Paulig brand in the future.
The intention is for the transaction to take effect on 31 May 2014. The deal will have no effect on personnel. The parties have agreed that the purchase price will not be made public.
The Robert’s Coffee café business is not included in the deal.
Elisa Markula, Head of the Paulig Group’s Coffee Division,
Tel: +358 50 596 0978, elisa.markula(at)paulig.com
Anita Laxén, VP, Communications, Paulig Group
Tel: +358 40 770 0873, anita.laxen(at)paulig.com
Paulig Group is an international family business in the food industry, known for its high-quality brand products. The business areas are Coffee, World Foods & Flavourings, Snack Food and Industrial Flavourings. The strong brands of the Paulig Group include Paulig and Santa Maria. The Group has almost 2,000 employees in fifteen different countries and net sales were EUR 850 million in 2013.
PauligGroup’s Coffee division is the market leader in Finland and the Baltic countries and in Russia it is the second-biggest supplier of roasted coffee. Paulig supplies its products and services to the retail trade, the HoReCa sector and workplaces through the Paulig Professional business unit. In Finland, Paulig's best-known brand products include Juhla Mokka, Presidentti, Paulig Brazil and Paulig Mundo as well as the coffee beverage Paulig Frezza and the drinking chocolate beverage Paulig Tazza. The most popular products on the Russian and Baltic markets are the Presidentti and Paulig Classic coffees and Paulig espresso products. The company's coffee roasteries are located in the Vuosaari district of Helsinki and Tver, Russia. The Vuosaari roastery produces some 100 million packages of coffee or roughly 45 million kilos of coffee per year.