Paulig joins Society’s commitment to sustainable development
Paulig wants to support society’s sustainable development commitment “the Finland we want by 2050” with two commitments. With the first we aim to favor the use of local renewable energy and job creation in Finland. With the second Paulig commits to support coffee farmers’ adaptation to the challenges of climate change.
This vision and the eight objectives defined to make it a reality by 2050 fit very well with Paulig values and our work in corporate responsibility. "We want to celebrate the European sustainable development week by publishing now two of our long-term commitments to sustainability”, says Elisa Markula, Managing Director of Paulig Group Coffee Division.
1. Paulig commits to grow the portion of renewable energy use by changing from natural gas to biogas in coffee roasting in Vuosaari roastery and by exploring opportunities to use renewable fuel sources for the car fleet of Paulig Professional.”
One of the focus areas for Paulig corporate responsibility work is caring for the environment. This can be seen in action in many ways in the Vuosaari roastery from energy efficient process design and constant drive for waste reduction to the use of wind powered electricity. Mixed waste is no longer generated at all from our operations. We are committed to continuous improvement in our environmental performance and therefore want to take the next steps to further improve our operations.
2. Paulig commits to continue as a key contributor to coffee & climate initiative that seeks to enable coffee farmers’ communities to improve climate change resilience and to increase their adaptive capacity.
Climate change is already posing clear challenges for traditional coffee growing regions and livelihoods of coffee farmers and their communities. Paulig is a founding member of Coffee & Climate initiative that aims to provide information and tools for adaptation of coffee growing to the challenges posed by climate change. Started in 2010 the initiative has developed tools, built knowledge and local networks in pilot projects in Vietnam, Tanzania, Trifinio (Guatemala, Honduras, El Salvador) and Brasil. The initiative has now reached a point of maturity where it is ready for upscaling of the efforts.
“With these commitments Paulig wants to contribute to the sustainability of global supply chains, support coffee growers communities and secure enjoyable coffee moments for all the coffee lovers for a long time to come. Creating sustainable development requires decisive actions on international, national and local level. It is great that Finland has taken a leadership role in this work internationally by creating this Society’s sustainable development model that can bring concrete results”, concludes Elisa Markula.
Society’s commitment to sustainable development
Society’s Commitment to Sustainability received an enthusiastic welcome at the UN
Coffee & Climate initiative
Coffee & Climate - video
Elisa Markula, Senior Vice President and MD, Coffee Division of Paulig Group, email@example.com
Leena Miettinen, Corporate Responsibility Manager, Paulig Group, firstname.lastname@example.org, tel. +358 9 319 8364
We support the victims of the Nepal earthquake through the Red Cross
Paulig Group donates 5,000 EUR to Red Cross Disaster Relief Fund which helps those afflicted by the earthquake in Nepal. The collected funds are used for emergency relief and acquisition of materials for people who have lost their homes.
A massive earthquake shook Nepal a couple of weeks ago and another devastating earthquake hit Nepal again yesterday. The country is today in a big need of international help.
Expedition Arcada – Students conquer a mountain with Santa Maria in the backpack
Combine motivation, will-power and conviction and great things can be achieved! To prove this Arcada University of Applied Sciences and 45 students join forces with adventurer Patrick “Pata” Degerman and the Swedish wheelchair athlete Aron Anderson in May 2015. The goal is to scale a 300 meter tall, perfectly vertical mountain wall in La Grave, France, after months of preparations in Helsinki, Finland.
Not only is the expedition learning by doing at its best, which one of Arcada’s goals as an educational institution. The expedition is an extensive development project which spurs new ways of thinking regarding innovations and entrepreneurship, supports the participants’ professional and personal development and offers excellent opportunities for networking. The expedition gives all parts involved the opportunity to stand out and to test and develop new products, methods and concepts. The climbing expedition takes place 7 - 15 May 2015 in La Grave.
Paulig Group is one of the sponsors on the adventure and has sent a number of Santa Maria products with the expedition. You can follow the adventure through the Expedition Arcada webb site, Facebook and Twitter – among others. Watch out for pictures and videos from the cooking during the expedition as the team aims for the mountain wall and explores the taste of Santa Maria.
For more information and moments from the expedition see http://expeditionarcada.fi/index.html in English, Swedish or French.
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: email@example.com
Eric Terré, CEO, Solina Group, tel +33 2 99 60 07 60, e-mail: firstname.lastname@example.org
Anita Laxén, VP Communications, Paulig Group, tel +358 40 770 0873, email@example.com
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