Finnish food company Raisio has unveiled an ambitious growth strategy aimed at achieving €250 million in sales by 2027, representing a 10% increase from its 2024 figure of €227 million. The company has also set an earnings before interest and taxes (EBIT) target of €30 million by 2027, which would mark a significant 28% increase from the €23 million reported in 2024. Under the leadership of CEO Pasi Flinkman, Raisio is focusing on three key growth areas: mergers and acquisitions, new product categories, and innovation in plant-based foods and ingredients. “We want to be a consumer-oriented European innovator that promotes the food transition with new products, as well as plant-based foods and ingredients,” stated Flinkman, highlighting the company’s commitment to evolving with changing consumer preferences.
Strategic Organizational Restructuring for Enhanced Focus
At the core of Raisio’s growth strategy is a comprehensive organizational restructuring plan scheduled for implementation in the first half of 2025. The company will reorganize its operations into three distinct areas: two physical, category-focused divisions centered on breakfast and snacking products and heart health solutions, plus one new business area. This restructuring aligns with current innovative snacking trends that are reshaping the food industry.
The reorganization, while strategic, comes with certain workforce implications. Approximately 20 job positions are expected to be eliminated through the restructuring process. Change negotiations related to the restructuring will involve around 200 employees, representing a significant portion of the company’s workforce.
This new organizational structure is designed to create greater focus and efficiency within the company. By aligning teams around specific product categories rather than general functions, Raisio aims to respond more quickly to market demands and consumer preferences. The category-focused approach will allow for more targeted research, development, and marketing efforts that directly address the unique needs of each product segment.
Ambitious Growth Targets in a Competitive Market
Raisio has set its sights on outpacing the general market growth of 2-3% per year in its core sectors of breakfast, snack, and heart-healthy products. This ambitious target reflects the company’s confidence in its strategic positioning and capabilities. The growth strategy includes multiple complementary approaches to achieving this market-beating performance.
Increasing market share in existing territories forms one pillar of the growth strategy. Raisio plans to strengthen its presence in current markets while simultaneously pursuing geographic expansion into new regions. Corporate acquisitions will play a key role in accelerating this growth, allowing the company to quickly enter new markets with established brands and distribution channels.
Entry into entirely new product categories represents another significant growth driver. Raisio’s experience with popular breakfast options gives it valuable insights into consumer preferences that can be applied to new food categories. Despite these aggressive growth plans, the company has committed to maintaining its dividend policy of distributing 50-100% of earnings per share to shareholders, balancing growth investments with shareholder returns.
Strong Brand Portfolio and Research Innovation
Raisio’s growth strategy builds upon the strength of its established brand portfolio, which includes several well-known consumer favorites. Benecol, known for its cholesterol-lowering properties, and Elovena, popular for its oat-based products, serve as flagship brands in the company’s lineup. Additional key brands include Torino and Nalle, each with their own loyal customer base.
The company has secured a strong position in the European gluten-free oat production market, a segment that continues to see growing demand. This production capability provides Raisio with a competitive advantage in developing new oat-based products. Similar to how some companies have pursued strategic acquisitions of popular brands, Raisio is considering such moves to strengthen its market position.
Research and development will receive increased focus under the new strategy. Raisio plans to explore value-added oat-based ingredients and develop innovative solutions for fullness and weight management. These research initiatives align with growing consumer interest in functional foods that offer benefits beyond basic nutrition. To support these research efforts, the company plans to invest in a dedicated product development center and collaborate with international research institutions and start-ups, fostering an environment of innovation.
Leveraging Oat Expertise for Future Growth
Raisio’s expertise in oat production and processing provides a solid foundation for its future growth plans. The company’s deep knowledge and experience with this versatile grain position it to capitalize on the growing global demand for plant-based foods and ingredients. Oats have gained popularity for their nutritional benefits and sustainability credentials.
The gluten-free oat production facilities operated by Raisio represent a significant competitive advantage. As more consumers adopt gluten-free diets, whether for medical reasons or lifestyle choices, the demand for high-quality gluten-free products continues to rise. This trend mirrors the broader food industry’s move toward sustainable food practices that many consumers now prioritize.
Developing new applications for oats represents a key area of focus for Raisio’s R&D teams. Beyond traditional oat-based products like porridge and muesli, the company is exploring innovative ways to incorporate oats into snacks, baked goods, and even beverages. The versatility of oats allows for diverse product development possibilities that align with contemporary consumer preferences for wholesome, plant-based options.
M&A Strategy: The Key to Accelerated Growth
A cornerstone of Raisio’s growth strategy involves leveraging its strong financial position to pursue strategic acquisitions. The company plans to utilize its robust balance sheet to fund targeted acquisitions that will strengthen its market position and facilitate expansion into new product categories. This approach can accelerate growth beyond what would be possible through organic means alone, similar to how some food companies have achieved record growth through strategic acquisitions.
Although specific M&A targets have not yet been publicly announced, the company has indicated that it is actively exploring opportunities. CEO Pasi Flinkman emphasized the importance of this aspect of the strategy, stating, “Additionally, we will utilise our strong balance sheet more efficiently to accelerate growth. This entails opportunities to implement targeted acquisitions and investments in research activities.”
Acquisition targets will likely be companies that complement Raisio’s existing product portfolio or provide entry into attractive new market segments. The ideal candidates would offer synergies with Raisio’s current operations while bringing unique products, technologies, or market access that would be difficult to develop internally. Through this strategy, Raisio aims to create value for shareholders while expanding its market presence and accelerating its growth trajectory.
The M&A approach fits within Raisio’s broader growth framework, working alongside internal innovation and organic expansion. By balancing these different growth drivers, the company hopes to achieve its ambitious sales and profitability targets by 2027. This multi-faceted strategy reflects a sophisticated approach to growth that addresses both short-term opportunities and long-term market positioning. I’m excited to see how Raisio creates new options for delicious plant-based recipes that might inspire your own kitchen creations.
Balancing Innovation and Shareholder Returns
Despite its ambitious growth and investment plans, Raisio remains committed to delivering value to its shareholders. The company has confirmed it will maintain its current dividend policy of distributing between 50% and 100% of earnings per share. This commitment demonstrates confidence in the strategy’s ability to generate sufficient returns to fund both growth initiatives and shareholder rewards.
The balanced approach to growth investment and shareholder returns reflects Raisio’s financial discipline. Rather than sacrificing dividends entirely to fund expansion, the company is confident it can achieve both objectives simultaneously. This approach may appeal to those looking to discover new food businesses with strong financial foundations.
Pasi Flinkman’s leadership has brought a vision that balances innovation with financial responsibility. As the company implements its restructuring and pursues its growth targets, maintaining this balance will be crucial to winning the confidence of both customers and investors. With its strong brand portfolio, innovative research focus, and strategic acquisition plans, Raisio appears well-positioned to achieve its ambitious goals for 2027 while continuing to reward those who invest in its vision of becoming a leading European innovator in plant-based foods and ingredients.
For food enthusiasts and industry watchers alike, Raisio’s strategy provides an interesting case study in how traditional food companies can evolve to meet changing consumer demands. The focus on plant-based innovation and sustainability aligns with current market trends, while the emphasis on research and development suggests a company looking to the future rather than simply protecting its past. If you’re interested in showing your passion for food innovation, check out some food-themed apparel that celebrates culinary creativity.