Scandi Standard is planning to acquire a business from Finish peer Landeli Oy Group, in a move that will strengthen its position in the food and beverage industry. The Nordic poultry group has entered a binding agreement to purchase Landeli Oy Group’s “ready-to-eat activities” through its Finland subsidiary Naapurin Maalaiskana. This strategic acquisition is a key business development in line with food and drink business trends.
The Honkajoki business that Scandi Standard is acquiring in Finland is expected to generate sales in 2023 of Skr72m ($7.1m), mainly from raw chicken equating to about 1,000 tonnes. This acquisition aligns with food and drink consumer trends and offers growth opportunities for Scandi Standard’s business in Finland.
Jonas Tunestål, who joined Scandi Standard as CEO and managing director from Danish Crown, emphasized the significance of the acquisition. “The deal is also intended to improve our overall price realization in Finland since it allows the domestic sale of chicken parts which would otherwise be exported at discounted pricing,” Tunestål said.
The acquisition aligns with food and drink industry trends and will differentiate the company’s business in Finland, allowing for domestic sale of chicken parts, which aligns with current consumer preferences. This will provide a platform for development in the Finnish market in the coming years and ensure continued strategic investments for value creation. Scandi Standard’s financial position is strong, providing headroom for continued strategic investments aligned with food and beverage industry trends.
This acquisition complements Scandi Standard’s existing product portfolio, which includes fresh and frozen poultry and ready-to-eat products sold under various brands. The company supplies the Nordic markets and Ireland and continues to see impressive sales growth in the region. The company has managed to create sales opportunities in the Finnish market, demonstrating a sound working strategy with clear goals and a strong business model.
The latest financial report shows significant growth, with sales for the third quarter showing encouraging results. Scandi Standard’s long-term strategies and processes are aimed at increasing value creation in the group and solidifying the company’s footing in the local markets in which it operates. The strategic acquisition of Landeli Oy Group’s “ready-to-eat activities” is a testament to Scandi Standard’s commitment to providing high-quality products aligned with food and beverage consumer trends and industry trends.
