Bread House (formerly Facer LLC)

History

2022

Finnish bakery holding Fazer sells Russian business

On April 29, 2022, Kolomensky bakery and confectionery holding announced the acquisition of the Russian business of the Finnish company Fazer. Its participants did not disclose the financial and other parameters of the transaction.

By the end of April 2022, Fazer owned four plants in Russia: three in St. Petersburg and one in Moscow. All these enterprises will become the property of the Kolomensky bakery and confectionery plant, where they promised to save the work of the plants.

On April 29, 2022, Kolomensky bakery and confectionery holding announced the acquisition of the Russian business of the Finnish company Fazer. Its participants did not disclose the financial and other parameters of the transaction.

After the start of the Russian special operation in Ukraine, Fazer announced the suspension of work in the Russian Federation and began to look for buyers for its business in this country. Given the urgent nature of the transaction and the current geopolitical situation, its value does not exceed 4 billion rubles, said Mikhail Burmistrov, general director of Infoline Analytics. The expert said this in a conversation with Vedomosti.

Earlier, Izvestia reported that Kolomensky was interested in buying the Bread House and filed a petition with the antimonopoly service. In mid-April, a Kommersant source said that Fazer is looking for business buyers in Russia and Kolomensky is the most real contender. According to the sources of the publication, the Finnish company did not set the value of the assets, but offered buyers to put forward an offer themselves.

At the end of April 2022, the Federal Antimonopoly Service of the Russian Federation agreed on the application of the Kolomensky bakery and confectionery holding for the acquisition of 100% of the Khlebny Dom company. According to the agency's Telegram channel, the deal will not lead to limited competition in the Russian bakery market.

Fazer estimated investments in Russian business at 300 million euros, the Izvestia newspaper writes. The company owns three factories in St. Petersburg (Smolenskaya, Murinskaya, Neva) and one in Moscow. According to the company itself, it ranks first in the St. Petersburg market with a share of 38% and third in the capital with a share of 13%.

Kolomensky manages four industries in Moscow, Dedovsk, Balashikha and Podolsk (by April 2022).^[1]

Change of name of the Russian "daughter" Fazer to "Bread House"

At the end of March 2022, the Finnish bakery holding Fazer changed the name of the Russian "daughter" to continue working in the Russian Federation. Instead of Facer LLC, the company became known as Bread House LLC (one of the manufacturer's most famous brands).

Renaming a legal entity will allow the holding to continue working in Russia, the company's press service told TASS. They noted that the change of name will not entail changes in rights and obligations in relation to employees, consumers and counterparties.

Finnish bakery holding Fazer changed the name of the Russian "daughter" to continue working in the Russian Federation

The company noted that bread and pastries under the Bread House brand have been known to consumers for many years, and knowledge of the trademark reaches 93% in Moscow and 97% in St. Petersburg, therefore, a change of name should contribute to success in the market. Bread from the food lines "Health Energy" and "Bourges" will also remain on the market and will become independent brands, as well as frozen bakery products, they added there.

By the end of March 2022, the owner of Bread House LLC is listed as the Dutch Fazer Bakeries B. V., but in the future the division may become an independent company or pass into the hands of local players.

By the end of March 2022, Khlebny Dom LLC manages three bakery enterprises in the Russian Federation in St. Petersburg and one in Moscow. The company has about 2300 employees. According to the Committee on Industrial Policy, Innovation and Trade of St. Petersburg, Fazer is the largest producer of bakery and confectionery products.

After the start of the Russian special operation in Ukraine on March 24, 2022, Fazer announced a decision to stop all activities in Russia, having previously stopped exports and investments in the country. Thanks to the rebranding, the holding remained on the Russian market.^[2]