Paulig, a Finnish food and beverage company, has announced its intention to invest 42 million euros in a new savoury snacks production facility in Spain. The company said that the new factory will strengthen its position in the Tex Mex and snacking categories in Europe, and will increase its innovation capabilities. The company expects to start the construction in 2025, and the production in 2026.
Paulig to Expand its Snacking Portfolio with New Factory
Paulig said that the new factory will produce a variety of savoury snacks, such as tortilla chips, nachos, and popcorn. The company said that the new factory will complement its existing snacks factories in Spain and Belgium, and will enable it to meet the growing demand for snacks in Europe.
Paulig is a leading player in the Tex Mex and snacking categories in Europe, with brands such as Santa Maria, Risenta, Gold&Green, and Poco Loco. The company acquired the Spanish snacking company Liven in 2022, which produces the Zanuy brand of snacks.
Paulig said that the new factory will also enhance its innovation capabilities, and will allow it to develop new products and formats that cater to the changing consumer preferences and needs. The company said that it aims to offer high-quality snacks that are made from sustainable raw materials, and that include vegetables, fruits, grains, pulses, and vegetable oils.
Paulig to Boost its Growth and Efficiency with New Strategy
Paulig said that the investment in the new factory is part of its new strategy, called Expedition 2030, which was launched in 2023. The company said that its new strategy is based on four pillars: growth, efficiency, sustainability, and innovation. The company said that it aims to grow its revenue by 2-4% per year, improve its operating profit margin to 3.5-4.5%, reduce its carbon emissions by 30% by 2030, and increase its innovation spending to 1.5% of revenue by 2026.
Paulig also said that it has reorganized its business structure, effective from January 1, 2024, into four business groups: Mexico, North America, Latin America, and EAA (Europe, Asia, and Africa). The company said that the new structure will enable it to focus on its core markets and products, and to simplify its decision-making and processes.
Paulig also said that it has implemented a cost-saving program, which will result in a reduction of 1,800 jobs worldwide, including 900 in Mexico. The company said that the program will generate annual savings of 6.4 billion pesos by 2026.
Paulig to See Positive Signs for 2024
Paulig said that it expects a gradual recovery of the bakery market in 2024, as the COVID-19 pandemic subsides and the consumer demand improves. The company said that it expects a positive impact from its new strategy and its cost-saving program, as well as from its innovation pipeline and its sustainability initiatives.
The company also said that it will continue to invest in its brands, its markets, and its products, and that it will pursue organic and inorganic growth opportunities. The company said that it will also strengthen its financial position and its balance sheet, and that it will maintain a prudent dividend policy.
Paulig is a family-owned food and beverage company, with operations in 13 countries and more than 200 brands. The company produces a wide range of products, such as coffees, Tex Mex products, world foods, spices, and snacks. The company also produces ingredients for the food industry, such as flour, tortillas, and frozen dough.