Eastern European Markets
March, the 18th, 2008

Fazer will build a new bakery in St Petersburg

Fazer has signed an agreement to buy land plot in the eastern part of Leningrad Oblast where it is planning to build a new bakery. The investment supports Fazer’s growth strategy in Russia. The bakery will produce value added fresh and frozen bread and coffee bread. The total investment is estimated to exceed 100 M¤.

‘The greenfield bakery in St Petersburg supports Fazer’s growth strategy and strengthens our position as one of the leading bakery companies in Russia’, says Fazer’s Group President Karsten Slotte.

The 20 hectare land plot is located in Vsevolozhsky district of Leningrad Oblast, along the east side of the St Petersburg Ring Road.

‘The new bakery will enable us to introduce new types of products and increase our deliveries to other areas in Russia. The bakery will produce value-added fresh and frozen bread and coffee bread. Our estimate is that the new bakery will offer job opportunities for several hundreds of new employees. We expect the total investment to exceed 100 M¤’, says Harri-Pekka Kaukonen, responsible for Fazer’s operations in Russia.

During the past three years, Fazer’s bakery operations in Russia have grown at an average rate of ca 40 per cent annually, and today they constitute 14 per cent of the Group’s turnover. Fazer has during the past ten years invested ca 130 M¤ in its operations in Russia. Fazer’s turnover in 2007 in Russia was 170 M¤ and the division employs 3 700 people.

In addition, Fazer has since year 2006 operated in the food service business in Russia. The operations were at first aimed at offering high class food service to international and Scandinavian companies operating in St Petersburg. Moreover, Fazer Amica opened its first restaurant in St Petersburg in September 2007.

About Fazer Group
Fazer Group originates from a family business founded in 1891. Today the Group offers meals and bakery products and operates in a total of eight countries. Its operations are based on passion for customer, quality excellence and team spirit. The Group operates in three divisions, which are all committed to offering taste sensations: Fazer Amica, Fazer Bakeries and Fazer Russia. Fazer Amica is a leading contract catering company in the Nordic and the Baltic countries, offering customers delicious food and tailor-made service solutions. The company operates in the Nordic countries, Estonia, Latvia and Russia. Fazer Bakeries offers fresh and tasty bakery products and operates in Finland, Sweden, Estonia, Latvia and Lithuania. Fazer Russia is responsible for Fazer’s bakery operations in Russia and is one of the leading bakery companies in Russia. Fazer’s most important associated company is Cloetta Fazer AB, which is the leading confectionery company in the Nordic countries. Fazer Group‘s turnover for 2007 was around 1.2 billion euros. The Group employs ca. 15,000 people.

For more information
Fazer Group, President Karsten Slotte, tel. + 358 40 507 7065
Fazer Russia, Managing Director Harri-Pekka Kaukonen,
tel. +358 20 555 3184
Fazer Group, SVP Communications Ulrika Romantschuk,
tel. +358 40 566 4246

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