HKScan Corporation Press release, 4 October 2018, 13.00 (EET)
HKScan’s strategic target is to establish a strong global footprint in the rapidly growing meals segment. Demand for ready meals is growing at an annual rate of ten per cent across Europe. HKScan is currently expanding its production facility in Rakvere, Estonia, as announced in an earlier release dated 14.12.2017. The investment is progressing on schedule as part of the company’s drive for a sharper focus on the growing value-added products categories.
“Construction is in full swing and the modernized facilities will be operational during the first half of next year,” says Anne Mere, EVP Market Area Baltics. “We are investing in the latest cooking and packaging technology to enable the launch of new ready-to-eat products. We’re also working on innovative, eco-friendly packaging solutions, which are attracting growing interest among consumers. The Rakvere plant’s products will be sold not only on the Baltic market, but throughout HKScan’s home markets. We’re also committed to increasing exports from Estonia,” states Mere.
The commercially successful relaunch of the Via® product family in Finland is a good example of HKScan’s drive to strengthen its presence in the ready meals segment.
Changing lifestyles and dietary preferences push demand for ready meals
“Lifestyles and dietary habits are changing rapidly on all our home markets. Already half the Finnish population is eating smaller meals outside traditional mealtimes. There are many segments of the meals market that are growing as rapidly as 15% a year in value.* We are tapping directly into this growth trend,” states Heli Arantola, EVP Categories & Concepts.
“There are many synchronized trends driving this growth on our home markets: urbanization, the rising percentage of single-member households, and generally increased consumer purchasing power. Seeking joy of success in cooking is also a lifestyle trend, coupled with health consciousness as well as an increased desire for personal time management and for weekday variation. The rising popularity of travel is meanwhile spurring demand for more ethnic flavours,” Arantola describes.
The Rakvere investment: fast facts
- The total investment sum of EUR 8 million comprises the full modernization of the meals related cooking lines, installation of new cooking and packaging lines, and general expansion of the plant.
- The investment will improve HKScan’s competitiveness in growing categories by increasing the productivity and production capacity of the Rakvere plant.
- HKScan plans to increase exports both to its home and export markets.
- The modernization project will improve HKScan’s environmental footprint, as the new Rakvere lines reduce energy consumption by roughly five per cent.
Further information: HKScan Media Service Desk tel. +358 (0)10 570 5700 or email firstname.lastname@example.org
HKScan is a Nordic meat and meals company. We employ over 7 300 professionals in striving to serve the world’s most demanding consumers, maintaining quality throughout the full chain of operations, From Farm to Fork. HKScan produces, markets and sells high-quality, sustainably produced pork, beef, poultry and lamb products, as well as charcuterie and meals, with strong consumer brands, including HK®, Scan®, Rakvere®, Kariniemen®, Rose®, Pärsons® and Tallegg®. Our customers are the retail, food service, industrial and export sectors, and our home market comprises of Finland, Sweden, Denmark and the Baltics. We export to over 50 countries. In 2017, HKScan had net sales of EUR 1.8 billion, making us one of Europe's leading meat and meals companies. www.hkscan.com
* Source: Nielsen Panel Track Moving annual total (MAT) 12.8.2018