FDBusiness.com

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 10% across Europe. HKScan is currently expanding its production facility at Rakvere in Estonia. The investment is progressing on schedule as part of the Nordic food group’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.”

The total investment at the Rakvere site is €8 million comprising 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 also improve HKScan’s environmental footprint, as the new Rakvere lines reduce energy consumption by roughly 5%.

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.

“Lifestyles and dietary habits are changing rapidly on all our home markets. Already half the Finnish population is eating smaller meals outside traditional meal times. 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,” Heli Arantola adds.