Two Executives Exit in Raisio Shake up But CEO Pledges Improved NPD
18 Feb 2016 --- Raisio, the Finnish food group, has set up a new division to house Benecol and its snacks brands, which the company said will lead to “improved production and NPD (new product development)”.
The creation of the division, called Healthy, Ecological Mobile food (HEM), has prompted the departure of the two executives who headed up Raisio’s previously independent snacks and health division, Tomi Jarvenpaa and Mikko Laavainen.
However, speaking to FoodIngredientsFirst, Raisio chief executive Matti Rihko - who will take responsibility for the new unit - denies the move is a cost-cutting exercise, and said it would instead lead to improved production and NPD.
He said: “Like every company we need to speed up the innovation, we need to manage the brands better. The merger of the two existing divisions into one is basically combining two divisions that better reflect the core of the strategy which is health ecology and snacks.”
“Benecol is obviously a great success story but when combined with snacks I think there is great learnings of applications that can be undergone. Now that we actually put the muscle together for the two brand centres I think it will strengthen the pipeline of NPD that we have.”
Along with its health and snacks division, Raisio also has an agribusiness, which is not part of the merger.
Rihko said bringing together health and snacks, which includes oat brads Elovena and Provea as well as cereal brand Honey Monster, would not be an out-and-out merger of the divisions, as they spanned an array of different countries.
Benecol, for instance, is sold in 30 different counties.
He said, the company didn’t want to “over-organise” but would look to pool together resources to improve production, brand management, and NPD.
Earlier this month, Raisio reported a 60 percent increase in full year profits to €63.6 million ($70 million), helped by acquiring the licensing rights of Benecol in key European markets.
Rihko said the company had significant plans for Benecol in 2016.
He said: “We just got started during the last quarter. Benecol all in history has been a brand that responds exceptionally well to marketing investment.”
“There is something very interesting to the consumers in the UK market to be launched this year. It’s under the Benecol brand, it’s a totally new application, it’s a top secret.”
by John Reynolds
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