As lactose-free dairy products are becoming a more popular trend in healthy eating, Latvia’s leading dairy processing company Food Union has invested EUR 90,000 in expanding the category of lactose-free yoghurts. As a result, the range of fermented dairy products brand Lakto now has additional 7 functional novelties, based on the valuable L.acidophilus LA and Bifidobacterium BB lactic acid bacteria and high-quality lactose-free milk. Also, a brand new Lakto ProBio line has been created with two products without lactose and without added sugar.
Two Lakto ProBio – without lactose and without added sugar
Since 2018, Food Union has been purposefully reducing the amount of added sugar in Lakto products, but in 2023 the company developed the first lactose-free yoghurt Lakto Imuno. Now, thanks to the innovative approach of the food technologists of the Center of Excellence for Fresh Dairy Products, the company has created a brand new Lakto category – ProBio without added sugar and without lactose. Lakto ProBio will be offered to consumers in two flavor combinations – blueberry, banana, linseed and oatmeal yoghurt as well as strawberry and mango yoghurt. It is important that the soft sweetness of Lakto ProBio is ensured only by the natural ingredients of fruit, berries and grain products. These yoghurts are available in a drinkable form and are packed in fully recycable, sustainable PET bottles (270 g).
Three edible Lakto yoghurts with a spoon and two drinkable yoghurts without lactose
Three improved fermented dairy products have been introduced also in the assortment of Lakto yoghurts edible with a spoon. Namely, the whole cup-form Lakto category is now lactose-free. Consumers are offered two already popular Lakto flavors in a cup – the natural without added flavors and raspberry, as well as the new wild strawberry favor. All these products are made using a unique thermostatic method, where the yoghurt is fermented directly in the cup.
Along with two other new lactose-free yoghurts, the range of drinkable and made-to-go Lakto yoghurts has been created. Now, consumers are also offered natural Lakto without added flavors and Lakto with wild strawberry flavor in medium-size PET bottles (270 g). All drinkable Lakto yoghurts that are packaged in the sustainable PET bottles, are produced the main Food Union plant – Rīgas piena kombināts.
Nutrition specialists recommend
Along with lactose-free Lakto category expansion, Food Union has resumed cooperation the Latvian Association of Diet and Nutrition Specialists (LDUSA), whose goal is to provide Latvian residents with broad information about the role of nutrition in disease prevention and treatment, as well as to improve expertise of the nutrition specialists. LDUSA specialists have evaluated the new products and have concluded that ingredients and production technology of both Lakto ProBio and both natural Lakto yoghurts meet the basic principles of healthy nutrition. Thus, these four lactose-free yoghurts have become the first food products in Latvia to receive the LDUSA quality label “Nutrition specialists recommend”.
Guna Bīlande, board chairperson of LDUSA: “Lakto is a well known and popular brand that has won the positive assessment of the Latvian Association of Diet and Nutrition Specialists also earlier. It is positive that Lakto products follow the trends and now new products have been developed without added sugar and lactose which we as nutrition specialists highly appreciate because it demonstrates that the producer cares not only for the product’s flavors, but also the fact that they are healthy. Therefore, it is our joy that Lakto is the first food brand to receive the renewed LDUSA quality label “Nutrition specialists recommend”.
Ieva Lejniece, head of Food Union marketing and new product development departments: “Creation of seven new lactose-free Lakto yoghurts is a significant step not only for our company, but the whole Latvian dairy and food sector because in this way we demonstrate that our technologists are able to innovate world-level healthy nutrition products. It is worth mentioning that the original Lakto formula which was created by Latvian scientists in 1994, has not been changed for 30 years – it is a high-quality milk in combination with the valuable bacteria. This year our Lakto formula has become even better and more appropriate for different healthy diets because the new products do not contain lactose. If you wish to include lighter and healthier products in your everyday life, I recommend our new lactose-free Lakto yoghurts because it is the best choice for breakfast or healthy snacks in everyday nutrition.”
Availability of new Lakto products in stores and the overall assortment
The seven new lactose-free Lakto products are already available in the most popular stores across Latvia. In total, there are already 20 products, including 11 lactose-free products in the Lakto fermented dairy product assortment, 4 with added grain products and 5 in the traditional form of large bottles. As all Lakto products contain live lactic acid bacteria, these yoghurts have a short shelf life – depending on the type, it can be 12 to 27 days, therefore these products are available only in Latvia.
More information about Lakto: www.lakto.lv
Thanks to consumer affection, the well-known curd snack brand Kārums from Food Union has achieved remarkable success at the significant 2024 Baltic Brands Awards ceremony held in Riga on September 20. During the event, Kārums received three prestigious titles, being recognized once again as the most beloved local food brand not only in Latvia but across the Baltic region. Additionally, Kārums was awarded a special recognition from the TV channel TV3 for its ability to maintain consumer loyalty over the long term.
As in previous years, other brands from Latvia’s leading dairy processing and ice cream manufucter, Food Union, also received awards. In Estonia, the ice cream brand Eriti Rammus secured third place among the most beloved local food brands. In Latvia, the iconic ice cream brand Pols was awarded third place in the local food brand category, while the beloved ice cream Karlsons took fourth place.
Ieva Lejniece, Head of Marketing and New Product Development at Food Union, said: “Three outstanding awards for Kārums, while celebrating the 30th anniversary of the brand’s symbol – the Crow, is the best and most heartfelt gift we could ever imagine. It is the result of our team’s dedicated work, constant innovation, and tasteful communication. And it is precisely for this reason that we are delighted to be at the top of local food brand rankings for the fifth year.”
She added, “How do we become a necessary part of people’s everyday lives, securing not just a place in their refrigerators but also in their hearts? Kārums has its unique recipe – asking and truly listening to consumer wishes, and then implementing them. This has been our approach for many years, and also this spring, when we asked people what curd snack they would like to enjoy for the Crow’s anniversary. The majority responded – a blueberry curd snack with blueberries coated in chocolate. Say no more! The new blueberry Kārums will hit the shelves within a week.”
The Baltic Brands Awards, which celebrates the most beloved and recognizable brands in the Baltic region, has been conducted since 2004, marking its 20th anniversary this year. The research is carried out by one of Europe’s largest market research data collectors, Norstat. In 2024, over 3,000 respondents from all three Baltic countries participated in the survey. For more information, please visit: https://balticbrands.eu.
Latvia’s leading dairy processing and ice cream manufacturer Food Union, including Rigas Piena Kombinats and Valmieras Piens plants, in 2023 started work in new export markets and developed the existing ones, and the overall turnover in export markets increased from EUR 35 million in 2022 to EUR 45 million in 2023. It accounts for almost 30 percent of the overall consolidated sales that reached EUR 150.2 million in 2023.
“As the growth in the local market is limited, one of the central tasks of Food Union is to enhance our ‘export muscles’ – competence about other markets, skills to develop products adapted for the needs of foreign clients, and ability to reach an agreement with large and strong retailers,” said Arturs Cirjevskis, Food Union CEO in Europe and Latvia.
Dairy snacks – from Latvia to the world
“If earlier our focus in export was aimed primarily on ice cream categories, then now we see market demand for dairy snacks with high added value. Thanks to the growing healthy lifestyle trends and demand for protein-based snacks, we see increased market interest in curds snacks. In other words, Karums curds snack known to us for more than 30 years, which have a natural demand in several ethnic markets, now are facing interest from new European markets. We plan to use this opportunity, developing new and close export cooperations this year,” said Cirjevskis.
Focuss on exports
The five largest Food Union export markets in 2023 were Estonia, Ukraine, Lithuania, Azerbaijan and Poland. In total, Food Union exports products made in Latvia to 25 countries in the world, and over the past two years, 2-4 new export growth markets are developed annually. The concern plans to continue its expansion in the export markets with products of high added value – ice cream, cream cheese, curds snacks– also in the coming years, as well as to continue sales of industrial powdered milk within the group and beyond.
Curds snack sees its hour of fame
Export of Karums curds snack last year saw its biggest growth in Norway and Uzbekistan, where exports were started only in 2022. In 2023, the company increased and developed cooperation in the Netherlands, meanwhile in the US, Israel and Norway, the assortment of Karums curds snacks was expanded, introducing packaging made especially for these markets. In 2023, the curds snacks discovered such new countries as Romania and Bulgaria. In all these countries the curds snacks are sold under the brand of Karums. 2024 is special with a growing demand for curd snacks in European countries – Finland, Denmark, Italy, Spain, Germany and Cyprus, where cooperation with the partners has just started.
Latvia – also the land of cream cheese?
Ukraine showed the biggest growth among the existing markets, where export almost doubled – from EUR 5 million in 2022 to EUR 10 million in 2023, thanks to expanding distribution of Latvian-made high-quality cream cheese in cooperation with several customers. The new export markets – Kazakhstan, Greece and Poland – where exports of cream cheese were launched in 2023, also saw a significant growth. Exports to Kazakhstan in a year have reached almost EUR 1 million.
Latvia’s leading dairy processing and ice cream manufacturer Food Union, including Rigas Piena Kombinats and Valmieras Piens plants, closed 2023 with EUR 150.2 million in consolidated turnover, which is by 12 percent more than in the previous period (EUR 127.8 million). Gross profit has increased by 49 percent – from EUR 17.7 million in 2022 to EUR 26.3 million in 2023. The company’s net profit in 2023 was negative – at EUR 1 million.
Increase of turnover in 2023 in Latvia is attributed to a new sales strategy, especially in relation to export markets, while increase of gross profit – to reduction of costs in relation to the main supplies and energy resources. Last year the company managed to reduce loss from EUR 4.2 million to EUR 1 million.
“Even though the economic situation did not see any significant improvement last year compared to 2022, costs of some resources stabilized, thus, our operations in Latvian market could change from the emergency mode to a more planned and predictable mode. In 2023 we focused on revising our procurement strategies, further reduction of operational costs, investment projects that will ensure higher automation and energy independence, more powerful approach to winning export markets. Everything was focused, of course, on scrupulous work in our core activities, revising the product portfolio and development of new, innovative dairy and ice cream products,” said Arturs Cirjevskis, Food Union CEO in Europe and Latvia.
Innovations of dairy products
The main Food Union innovations in the category of dairy products in Latvia in 2023 were the flavours of Karums curd snack created by the people – plombir curd snack with poppy seeds in chocolate glaze and curds snack with grated rye bread and cranberry-cowberry filling in chocolate glaze. The new products were created to honour the XXVII Nationwide Latvian Song and XVII Dance Festival. During the campaign, Karums brand invited participants and guests of the festival to vote for the flavour of the Chief Curds Snack dedicated to the event. Both product innovations not only became very popular and much discussed in public, but also exceeded the sales plans.
In 2023, Food Union on Latvia also started production of four different flavours of Lakto sub-brand Lakto Imuno – lactose-free fermented dairy drink. Production of Lakto brand products in 2023 increased by 38 percent compared to 2022.
Ice cream innovations
Food Union in Latvia created six new Pols products in the ice cream category: two Pols ice creams in waffle cup – Banana and Chocolate and Crunchy Strawberry, one Pols ice cream on a stick with – strawberry-flavoured in a strawberry glaze, and three Pols ice cream desserts in the large family packaging – Pols Marmalade, Pols Waffle Crisp and Pols Crunchy Chocolate.
The 2023 summer season turned out to be one of the best seasons of the past six years, with the overall ice cream market in Latvia growing by more than 10 percent, while Food Union sales revenue increased by more than 14 percent than in the summer period a year ago.
Investments
One of the largest investment projects in 2023 was related with increasing automation level in manufacturing. Investing more than EUR 2 million, Food Union purchased automated ice cream, curd snack and cream cheese packaging systems that will allow to increase production capacity, replacing manual work or simplified mechanical work with more contemporary solutions.
The second largest investment project was adaptation of heating generating equipment and use of other types of fuel in order to reduce dependence on one type of energy source, namely, installation of equipment that is prepared to use natural gas and liquefied natural gas (LPG) for the production needs of Rīgas Piena Kombināts and Valmieras Piens.
Responding to constant interest of general education school teachers and pupils in how the popular dairy products and ice creams are produced, in 2023 Food Union created educational and entertaining school program Dairy Class – located in Riga, Latvia. It is aimed at primary and elementary school pupils as an entertaining excursion in the premises of Rigas Piena Kombinats. The concern also plans to continue to develop children and youth education also in the coming periods. Excursions should be booked at https://www.foodunion.lv/pienaklase.
Food Union management in 2023 continued to make donations, worth a total of EUR 173,000, supporting Ukraine and Ukrainian refugees in Latvia.
Future perspective
As reported, there were changes introduction in the Food Union ownership structure early this year. As a result of the transaction that was concluded in March 2024, the world’s leading alternative investment company PAG Private Equity acquired shares of Food Union group in Europe from the company’s founder and other private shareholders. Food Union CEO in Europe and Latvia, Arturs Cirjevskis, continues work, and has set further manufacturing efficiency, revision of the product portfolio and development of new products in the competence centres in Riga, strengthening of the local brands with a broad range of marketing instruments, more active expansion in export markets, and a product portfolio adapted for the needs of clients, as well as development of a new management team as his priorities.
Highlights:
– Continued focus on innovation with 50 novelty ice cream products developed for Summer 2023 accompanied by product portfolio optimisation
– Focus on sustainable, value-added growth across markets, particularly strengthening our doorstep-delivery business, entering new export markets and further developing our cooperation with locally strong partners
– Change in ownership and senior management in early 2024 under the leadership of Artūrs Čirjevskis as CEO in Europe.
Overview of Results
Food Union, one of Europe’s leading ice cream and dairy producing and distributing groups, is announcing its financial results for 2023. Net revenue in 2023 grew by 11% compared to 2022, reaching EUR 323 million. Losses were reduced by 58%, from EUR 11.5 million in 2022 to EUR 4.8 million. Financial results reflect the resilience and rapid internal transformation focused on enhancing top-line growth and cost efficiency, honed procurement strategies, streamlined operations, strengthened doorstep delivery services, sharpened product portfolios, and expanded export markets.
Artūrs Čirjevskis, CEO of Food Union in Europe, comments: “In 2023, the European food industry continued to face macro market challenges, with inflation and the war in Ukraine presenting significant obstacles in the supply chain and consumer behaviour. During this period, Food Union demonstrated the Group’s capacity not only to adapt and overcome the obstacles but to grow in line with the overall European food industry. I am proud that during these challenging times we improved market shares across all markets we operate in by focusing on pricing and procurement strategies, cost reduction efforts, and driving growth in our doorstep-delivery business area as well as exports.”
Total net cash used for investing activities reached EUR 8.7 million, with EUR 2 million invested in truck upgrades, moving towards the goal of building an effective and green fleet across the Group. A further EUR 6.7 million was invested in property, plant, and equipment.
Ownership and Management Changes
At the beginning of 2024, Group’s ownership structure was changed. Announced in January 2024 and concluded in March 2024, the world’s leading alternative investment company PAG Private Equity one of the three former investors in the Food Union Group became a majority shareholder by acquiring shares from the company’s founder and other shareholders. Consequently, the Food Union Group in Asia ceased to be part of the Group. The Group’s Executive Leadership team consists of Artūrs Čirjevskis, CEO of the Food Union Group in Europe, and Soren Lauridsen, Executive Chairman of the Food Union Group in Europe.
Outlook
With the economic landscape beginning to stabilize in 2024, Food Union stands firm for further advancement. As an innovator, producer, and distributor of ice cream and high-value dairy products, group is well-equipped to continue captivating the hearts of consumers. With more than 55 ice cream novelties planned for the 2024 summer season, alongside a comparable number of dairy product innovations, group is fully committed to deliver on the brand promises of its products, both in-store and through direct delivery.
Latvia’s leading dairy and ice cream producer Food Union has, in close cooperation with suppliers, managed to switch from using cage-laid eggs to barn-laid eggs in pancake production. Although the use of eggs as a raw material in Food Union production is minimal, evaluating the risks and benefits of switching to barn-laid eggs and egg products and consulting with representatives from Dzīvnieku brīvība (Animal Freedom), Food Union was able to make the change within just three months from the announcement of the decision on March 30 this year. Abandoning cage-laid eggs by 2025 was one of the goals set by Food Union in the company’s Sustainability Strategy.
“Transitioning to sustainable production is first a change in mindset, and only then practical steps on how to do it responsibly, effectively, and economically justified. Thanks to the work with suppliers and the consultations we received from the Dzīvnieku brīvība association, the transition from cage-laid eggs to barn-laid eggs turned out to be easier, faster, and economically justified than we initially assessed. Although the number of products in which we use eggs is not large, the internal team’s responsiveness to do it was an additional stimulus to not postpone this work and complete it as quickly as possible,” comments Ieva Lejniece, Food Union Marketing and Product Research and Development Director.
Katrīna Krīgere, head of the Dzīvnieku brīvība association, comments: “Most people care about animals. They do not want animals to suffer severely and unnecessarily, as is the case with laying hens in cages. Therefore, when companies introduce welfare improvements, everyone benefits – not just the animals, but also consumers and the company itself. This Food Union step is an inspiring example of socially responsible action – an encouragement for other companies to eliminate cruel cages from their supply chains faster.”
As previously reported, Food Union daily produces 400 different dairy products and ice creams for more than ten beloved food brands. The company purchases and uses eggs and egg products in small amounts for the production of six types of pancakes and one cheese product, which is done according to the strict international standards of FSSC 22000 and HACCP. The previous plan was to switch to barn-laid eggs as soon as possible, but no later than the end of 2025, which was successfully completed in just three months.
The Food Union developed Sustainability Strategy covers work in three main directions, defined and based on the UN Sustainable Development Goals: 1) Improving well-being by purposefully and regularly enhancing products, developing new and healthier products; 2) Reducing environmental impact by optimizing production and the raw materials used in the production process and the waste generated; 3) Strengthening a fair social system by improving social conditions through transparent and fair cooperation throughout the value creation chain.
Kirsten Ægidius, an experienced business leader with extensive international experience in Commerce and FMCG, has been appointed as the new Managing Director for Danish legacy ice cream producing and delivering brands – Premier Is and Hjem-IS – in Denmark, and strong Norwegian ice cream market players Isbjørn Is and Isbilen in Norway, effective from July 24, 2024.
Kirsten brings an impressive background and expertise, with extensive experience in FMCG and multi-channel (retail, convenience, on-trade, and e-commerce). With her solid experience from companies such as Coca-Cola, Carlsberg, Unilever, as well as her most recent role as CEO at Interflora, Kirsten will become a strong strategic and operational leader for our businesses in Denmark and Norway.
In her role as Managing Director, Kirsten will report to Søren Lauridsen, Executive Chairman at Food Union, while both the Danish and Norwegian leadership teams will be reporting to Kirsten.
Food Union, an international ice cream producer and distributor, has demonstrated its continued commitment to innovation and consumer satisfaction with the launch of its 2024 high season novelties. A total of 55 new ice cream products have been developed, taking into account global trends and local consumer preferences across six European markets.
Food Union is set to entertain the ice cream market in 2024 with a range of novel products that cater to the latest consumer trends. Embracing the demand for healthy indulgence, the new offerings include “lighter” alternatives with low sugar and low fat, while also introducing innovative textures like jelly-like consistency for more convenient on-the-go snacking. Vegan-friendly sorbets provide refreshing options for all, and adult-themed, alcohol-flavored ice creams cater to sophisticated palates. Exotic fruits and savory berries continue to captivate, while juicy sauce fillings and twirls add excitement to each bite. Salted caramels and nuts remain popular for their soothing flavors, and classic favorites make a nostalgic return, ensuring there’s something for everyone in Food Union’s diverse and exciting 2024 lineup.
“From surprisingly innovative to recognasibly classical, from rich in cream to refreshingly lean and vegan-friendly, from juicy and fruity to creamy and crunchy – is how this year’s summer is going to taste when it comes to quality indulding frozen treat in form of 55 novel ice cream products prepared by Food Union R&D and marketing team to be distributed in total of 6 home markets – Latvia, Estonia, Lithuania, Denmark, Norway and Romania,” says Artūrs Čirjevskis, CEO of Food Union in Europe.
The 2024 novelties are grounded in trends that are shaping the industry:
“Lighter” ice creams with low sugar and low fat. This trend is driven by increasing health consciousness, dietary trends favoring low-carb and low-fat options, improved nutritional label transparency, and innovations in food technology that allow for healthier alternatives without compromising taste. Food Union continues to prioritize the development of numerous products to cater these consumer needs:
In Estonia: Premia 40% less sugar ice cream with mango-passion filling on a stick, 50g/ 100ml and Premia 40% less sugar ice cream with raspberry filling on a stick, 50g/ 100ml;
In Latvia: Tio Vēsma wafer cup small apple 0.7% 0.12l/0.075kg and Tio Vēsma wafer cup small lemon 0.7% 0.12l/0.075kg
In Denmark: Underground Mango-Lime – mango ice cream with lime limonade coating on a stick, 83 ml, with only 50 kcal per piece, and Underground cone with salty caramel ice cream with only 151 kcal per piece.
Vegan-friendly ice creams. The broader acceptance and introduction into our everyday lives of plant-based diets and the desire for healthier, innovative dessert options without compromising taste is the main driver of prevalence of vegan-friendly ice creams on the market. Every year Food Union introduces with a range of vegan-friendly products across almost all markets:
In Latvia: Tio Vēsma small mango sorbet on a stick with 0% fat, 0.06l/0.044kg, and Tio Vēsma small raspberry sorbet on a stick with 0% fat, 0.06l/0.044kg;
In Estonia: Premia cherry sorbet on a stick, 73g/ 80ml;
In Lithuania: Klasika Mango sorbet on a stick, 73g/ 80ml, and Klasika Strawberry sorbet on a stick, 73g/ 80ml.
Adventurous ice creams. Those, who perceive ice cream enjoyment as an adventure, can’t wait for the summer with new, exciting cold delicacies. This is true with respect to both young ice cream lovers and adults, for whom life is still one big playground. Food Union respects this ‘joie de vivre’ and this year has created a range of ice creams in different shapes, sizes and designs – from crazy flavoured creamy ice cream to refreshingly jolly juice lollies.
In Denmark: Premier Is Astronaut Blue Raspberry – lemonade ice cream with raspberry flavour on a stick – in the shape of the space ship, Premier Is Chewis Apple ice cream with apple winegum coating, and Premier Is AI-scream mini pint with banana ice cream with blueberry rippel and choko-coated popcorn in 125 ml tub;
In Latvia: Jungle Pop bubble gum flavoured ice lolly with a jelly like texture with 0,5% fat, 0.07l/0.07kg;
In Estonia: Väike Tom Star-shaped vanilla ice cream in strawberry glaze with cookie pieces on a stick, 55g/ 95 ml.
Classic ice creams in new interpretations. Consumers are increasingly drawn to familiar flavors enhanced with exciting new elements like juicy sauce fillings and twirls, which add a burst of flavor and texture, making traditional choices feel fresh and indulgent. Food Union has always recognized consumers’ desire for comfort and familiarity in nostalgic flavours that evoke fond memories while providing a delightful treat that stands the test of time, and 2024 is no exception with these novelties:
In Latvia: Ekselence ice cream with Cherry flavoured Riga Black Balsam in wafer cone, 0.22l/0.11kg;
In Denmark: Premier Is Nøddeknas wafer cone with hazelnut and pistachio ice cream, 200ml, Premier Is Æblekage m. makron – apple ice cream with macron, 440ml, and Premier Is Rødgrød m. fløde – triple red berry ice cream with white choko coated meringue inclusions, 440 ml;
In Estonia: Eriti Rammus Vanilla ice cream with salted caramel in wafer cone, 100g/ 200ml, and Eriti Rammus Pistachio ice cream in waffle cone, 100g/ 200ml;
In Lithuania: Pols Vanilla bourbon ice cream with nougat filling and hazelnuts with milk chocolate flavoured coating in wafer cone,150ml/ 90g, and Pols Cream mango ice cream with raspberry filling and mango coating in wafer cone, 150ml/ 90g;
In Romania: Transalpina TRIO Caramel ice cream in waffle cone, and Transalpina TRIO Chocolate ice cream in waffle cone.
Attention, attention – fresh winds are blowing in the Latvian ice cream industry! The legendary lemon ice cream Vēsma of the Tio brand is back with three refreshing news – a new “retro” style design, a new and light flavor in a waffer cone, two brand new and vegan-friendly sorbet ice creams on sticks.
The innovative overhaul of Vēsma has happened thanks to the sustainability initiative of Latvia’s leading dairy company Food Union to offer consumers nutritionally “lighter” dairy and vegan-friendly ice creams made exclusively from fruit and berries. The recipes of the new products have been developed at the Food Union’s ice cream competence center in Riga. Meanwhile, investments made to develop and launch the Vesma ice creams of the Tio brand on the Latvian market are estimated at roughly 40,000 euros.
Ģirts Liniņš, Food Union Ice Cream Brand Manager, says: “The hotter the summer, the cooler the Vēsma ice cream! And vice versa, because whatever the weather in June, July and August, we will want to enjoy the season in any case. If it’s hot, let’s refresh ourselves with Vēsma. If it’s chilly, we’ll enjoy Vēsma anyway, because ice cream is the most authentic taste of summer. And of course, let’s not forget about our healthy lifestyle habits, in which the Vēsma ice creams, made either from skim cheese whey or vegan-friendly ingredients, will fit in perfectly!”
Apple and lemon in a cup
In response to the growing demand for nutritionally “lighter” ice creams, the Vēsma line has been expanded by adding one new product in a wafer cup. This unique cheese whey ice cream is now also available in a refreshing green apple flavor. In addition, consumers are also offered the legendary lemon-flavored Vēsma, which is made to the same old recipe but with a new wrapping at Food Union’s main European factory, Rīgas piena kombināts, since 1975.
Two vegan-friendly ice creams – on sticks
This summer, Vēsma aims to become the leading industrially produced vegan-friendly ice cream brand in Latvia. For this reason, a brand new product category has been introduced – two fruit and berry sorbets on sticks, which are basically made exclusively from plant-based ingredients. As a result, sorbet ice creams made from real raspberries and mangoes are now available to every consumer favoring a vegan diet.
All four new Vēsma ice creams of the Tio brand are now available in the most popular stores across Latvia.
Innovative and classic, creamy and lean, fruity and vegan-friendly, crunchy and springy – this ice cream season, the leading dairy processing company in Latvia, Food Union, has prepared new products that cater to a wide range of trends. A total of 11 new ice creams have been created for the Latvian market, which customers will recognize on store shelves by the names of their favorite brands: Pols, Tio, Ekselence, Jungle Pop, and Karlsons. The investments made in the development of these new products amount to approximately 115 thousand euros.
Ģirts Liniņš, the ice cream brand manager of Food Union, says: “Summer is the most anticipated time of the year for most people, including us, as we are the leading ice cream producer in the Baltic countries. Therefore, as usual, we have prepared carefully for it, and as a result, we have created 11 interesting novelties for our five major ice cream brands – not only from milk and sweet cream but also with lower fat content and vegan-friendly options. Therefore, every fan of this refreshing treat will be able to find something that suits their taste buds and dietary preferences this summer. Buy, enjoy, and savor, because ice cream is the true taste of summer.”
Innovative ice creams with care for sustainability
Following the growing consumer demand for “lighter” ice creams, the Vēsma ice cream line has been expanded with three new varieties. Now, in addition to the well-known lemon flavor, apple Vēsma ice cream made from cheese whey is also available in waffle cones. Additionally, two vegan-friendly “Vēsma” ice creams on sticks, made from real raspberries and mango, are now offered.
Meanwhile, the legendary and always witty ice cream brand Pols has introduced an entirely new category to its range – a medium-sized vanilla ice cream cone with a chocolate “cap” and a volume of 150 ml. There are two flavors on offer: Pols vanilla ice cream with dark chocolate coating and peanut crumbles, and Pols vanilla ice cream with cranberry sauce and dark chocolate coating.
But with the most innovative recipe, texture and also the potential to win the hearts of ice cream lovers of all ages this year is the ice cream brand Jungle Pop, which is popular among children and adults. Its range has been supplemented with a very playful innovation – bubble gum-flavored gel ice cream, which becomes playfully springy when it melts a little.
Four classic ice creams with new flavors
The dessert ice cream brand Ekselence will surprise gourmets this summer with one very expressive novelty – sweet-cream ice cream in a large waffle cone with Riga Black Balsam and cherries. As with all Ekscelence ice creams, this one also has an elegant topping topped with berry sauce and mini brownie cookies.
Pols brand mango ice cream in bright orange mango glaze on a stick has just returned to store freezers. But now, taking into account consumer preferences, it is available in a slightly larger size – 75 grams.
Finally, the range of both most popular ice cream brands in Latvia has been supplemented with two new products. The traditional Tio ice cream has returned to its classic values, introducing vanilla with whole raisins in a waffle cup. On the other hand, the iconic vanilla-chocolate ice cream Karlsons is now available with a new – cranberry jam.
All 11 new ice creams are already available in the most popular store chains throughout Latvia.
Strong and customer-loved dairy and ice cream brands with innovative flavours – that’s exactly what the food products produced by Food Union are. This is also confirmed by the recently conducted study of the international market and consumer research company NielsenIQ on the best new product launches of 2023 in the Baltic States. This time, our company won four awards for last year’s Kārums and Pols novelties.
Three awards in Latvia
The truly special poppy seeds-plombir curd snack Kārums created by the Latvian people in honor of the XXVII General Latvian Song and XVII Dance Festival received two awards in Latvia. In the main top of the best new products, in which a wide variety of different products competed, curd snack was ranked in the honorable third place, while in the category of dairy products – in the first place!
On the other hand, in the ice cream category, the legendary brand Pols Strawberry flavoured ice cream with strawberry filling, chopped wafers and coating in waffle cup became the winner.
One award in Lithuania
Pols also became the winner in the ice cream category in Lithuania, thanks to its strawberry ice cream in strawberry glaze on a stick.
Ieva Lejniece, director of the Marketing and Product R&D department of Food Union: “For us, as the largest food producer in Latvia, the high achievements in the annual NielsenIQ best new product study is a very important recognition. The received awards confirm the ability of Food Union to not stop at what the company has achieved, and to create truly successful and innovative products year after year that meet consumer tastes and market trends. So far, the ideas and recipes of all our new products have been created through the cooperation of two departments – product research and development and marketing. However, in order for us to surprise not only our customers, but also ourselves with even more exciting and competitive new product ideas, we have created a merged Marketing and Product Research and Development unit. I am sure that with even closer cooperation of our talented team, we will be the leader in production of not only tasty and innovative, but also healthy food products in Latvia”.
Spring is in full bloom, so Latvia’s leading dairy processing company “Food Union” continues to delight consumers with fresh new products. This time, the company comes out with pleasant news for all fans of the “Zilonītis” drinkable yogurt brand – now the range also includes yogurt with forest strawberry flavor. This new product has been available in stores all over Latvia since mid-April.
The main ingredients of the new “Zilonītis” forest strawberry yogurt are the highest quality milk, natural berry additives, and lactic acid bacteria culture. Thanks to its excellent taste and rich nutritional value, the product is a great solution for morning meals, eaten together with breakfast cereals or muesli, and as a healthy snack.
Overall, “Zilonītis” offers three drinkable yogurts – the new forest strawberry, as well as peach and ice cream flavors. Production takes place at “Food Union’s” main factory – “Rīgas piena kombināts”, Riga, Latvia.
The legendary Latvian brand Kārums celebrates a round 30 years of its beloved symbol – Crow (Vārna in Latvian). To honor this milestone in Latvia, the leading dairy processing company Food Union has launched a special campaign Celebrate KRĀ! and once again invites people to create a new curd snack flavour to surprise the Crow on its birthday. The creation of the new anniversary curd snack flavour has already begun, and it will continue until June 5 on the website www.kra30.eu. It is expected that the most popular of all the flavour combinations will become the special celebratory curd snack dedicated to the Crows’s anniversary and will hit the stores this autumn.
The Crow was “born” in 1994
An interesting historical fact – the Crow is not actually of the same age as Kārums, but rather a year younger. Why is that? Firstly, in 1993, the unique curd snack recipe that we know today was created, along with the product name – Kārums. However, the symbol that adorned the product packaging in the first year was a ginger cat. But already in the second year of Kārums existence, there were iconic changes – the vanilla curd snack was wrapped in an orange package, and the symbol was changed to Crow.
What flavour combinations can be created?
Within the Celebrate KRĀ! campaign, it is possible to create around 200 unique curd snack flavour combinations, such as rhubarb curd snack with garden berries in strawberry glaze, Tiramisu curd snack with salted caramel filling in chocolate glaze, or pistachio curd snack with blueberries in caramel glaze. In total, there are 15 curd flavours, 15 additional ingredients, and 3 glazes available. Which flavour will win – that is absolutely in the hands of the participants. However, it is already clear that Kārums Crow will be pleasantly surprised at the end of the campaign.
Celebrate KRĀ! campaign process
The campaign to create the new curd snack will take place in three stages. The first stage will run from April 23 to June 5, during which every Kārums fan – in Latvia and abroad – is invited to create their perfect Celebrate KRĀ! curd snack on the website www.kra30.eu, honoring the Crow on its 30th anniversary.
The second stage will take place in the summer. During this time, the masters of the Food Union Fresh Dairy Excellence Center will create the recipe for the anniversary curd snack, based on the flavour and combination of ingredients that people have voted for the most. Finally, in autumn, the third or celebratory stage will take place, resulting in the launch of the new anniversary curd snack in stores across Latvia.
Ilva Veidemane, brand manager of Food Union dairy product brands: “The best surprises are the ones we plan ourselves. That’s why we invite you to surprise yourselves and choose which new curd snack we’ll put on the table for Crow’s birthday celebrations in the autumn.”
As previously reported, in April of this year, Food Union has expanded the Kārums assortment with 3 new products – banana curdsnacks, lemon, and cranberry sweet cream creams. Therefore, the brand’s range now includes 36 products. In the sweet snack category, there are six types of products – 15 curd snacks, as well as curd snack multipack, 6 sweet cream creams, 4 bifido yogurts, 2 cream yogurts, 3 curd desserts, and 2 curd creams. In addition to sweet options, buyers are also offered 3 savory Kārums – 3 fresh cheeses with and without additives.
Latvia’s most beloved food brand Kārums is making an anticipated announcement – during April, three new treats will delight consumers as they hit the shelves, expanding the variety of curd snack and sweet cream dessert categories. Leading dairy processing company in Latvia, Food Union, has invested over 50 thousand euros in the development and launch of these new products.
“A legendary randevous” – this could describe the new Kārums curd snack, featuring the taste of banana, the world’s most popular fruit. This banana curd snack is coated in classic chocolate glaze, creating a bold and highly enjoyable flavor combination. Like all Kārums curd snacks, the new one is made according to the unique recipe created in 1993, with the main ingredient being high-quality curd, also known as cottage cheese.
Refreshing and juicy – are the words that describe the new Kārums sweet cream desserts, beloved by consumers for their airy, whipped texture. Now, these delicious desserts are also available in lemon and raspberry flavors.
Ilva Veidemane, brand manager of Food Union dairy products says: “Three new products in the Kārums lineup – it’s great news for every fan of our brand. But that’s not all! This year marks the round anniversary – 30 years since the famous Kārums crow was introduced, which means that this year we will delight Kārums lovers not only with these, but also with other delicious surprises”.
All three new products in the Kārums lineup are making their debut. Their recipes have been carefully crafted at the Fresh Dairy Excellence Center, located at the main production facility of Food Union: AS Rīgas piena kombināts in Riga, Latvia. Initially, the novelties will be available in stores across Latvia, and soon in Lithuania, Estonia, and other export markets.
Overall, Kārums offers 36 products. In the sweet snack category, there are six types of products – 15 curd snacks, as well as a curd snack multipack, six sweet cream desserts, four bifido yoghurts, two cream yoghurts, three curd desserts, and two curd creams. In addition to consumers, Kārums also offers three fresh cheeses with and without additives.
Latvia’s leading dairy processing and ice cream manufacturer “Food Union” for its main production facility in Latvia – “Rīgas piena kombināts” – has elected new supervisory board members. Soren Lauridsen, Executive Chairman of “Food Union” in Europe, will henceforth serve as the Chairman of the Supervisory Board, and Lincoln Pan, a Partner and Co-Head of the alternative investment company “PAG Private Equity”, will now take the seat of a Board Member.
Harijs Panke will continue his work on the board as the Vice-Chairman. Along with these changes, the former Chairman of the Board and the previous global leader and Co-Owner of the company, Andrey Beskhmelnickiy, and Board Members Soto Miguel Castellanos, Edgars Pīgoznis, Ingrīda Blūma, and Jana Kraveca, are leaving the Supervisory Board of “Rīgas piena kombināts”. The changes in the board are related to the transaction that took place in January of this year, as a result of which “PAG Private Equity” became the majority shareholder of “Food Union” in Europe.
“The changes in the board reflect the changes in the group of companies in Europe after one of our previous investors, “PAG”, became the majority shareholder. Now that the deal has officially concluded and the necessary regulatory permissions have been obtained, a new, smaller Supervisory board has been elected. This change reflects the goal of achieving faster commercial growth and value generation for all involved parties. A simpler management and oversight structure at this stage of the group’s development is expected to ensure a coherent and result-oriented work according to current priorities,” notes Artūrs Čirjevskis, the CEO of “Food Union” in Europe.
As previously informed, “PAG Private Equity” is an active investor in the food industry, especially in frozen food. Recent transactions include the acquisition of two leading Australian companies in the food and consumer sector – Patties, a well known provider of savoury snack, appetiser, meal and dessert brands, and Vesco, a producer of high quality frozen foods in Australia and New Zealand. These acquisitions add to the existing “PAG” consumer product portfolio, which also includes retail franchises (Craveable Brands), chicken processing and production companies (The Cordina Group and Shandong Fengxiang Co. Ltd.) and dairy producers (Youran Dairy).
February 29, 2024, Tallinn, Estonia – Estonian Regional Minister Madis Kallas and Chancellor Marko Gorban presented ministry medals to people who have contributed to the welfare and development of agriculture and regional areas at a formal reception dedicated to the 106th anniversary of the Republic of Estonia. Aivar Aus, board member and Managing Director Food Union Estonian Business Unit Premia TKH, was awarded with a certificate of appreciation and silver medal thus recognizing the good and effective work in developing Estonian legacy ice cream maker. In total, 20 people were honored with medals, 18 with silver and two with gold.
“On behalf of Estonian legacy ice cream maker Premia, part of Food Union Group, we are deeply humbled and grateful for the received silver medal from the Regional and Agricultural Ministry. This recognition is not just an important recognition for Aivar Aus, our long time leader in Estonia, but most importantly for everyone at Premia who has worked tirelessly to ensure the quality and excellence of our products. It’s a testament to our collective commitment to innovation and sustainability in the food industry across markets,” said Arturs Cirjevskis, CEO at Food Union Europe.
The Estonian Regional and Agricultural Ministry medals are awarded in two categories: gold and silver. The gold medal is given for outstanding services in the development of the ministry’s governance area. The silver medal is awarded for fruitful cooperation with the ministry or successful action within the ministry, a governance area government agency, a state institution managed by the ministry, or in a field within the ministry’s governance area.
This year, the concluding phase of a large-scale investment project by Food Union, Latvia’s leading milk processing and ice cream production company, has begun. It foresees further modernization of the production processes at “Rīgas piena kombināts” and, simultaneously, optimization of manual work that has been carried out thus far. As a result, within the first half of 2024, three of the company’s busiest production lines will be supplied with new automation equipment.
The project was launched in early 2023 in cooperation with the “Lauku atbalsta dienests,” and its total value has increased to 2.7 million EUR over the course of the year. Last year, the selection of equipment suppliers within the framework of European Union was organised by implementing public procurement processes. Currently, the majority of the equipment has already been delivered to Latvia and is being prepared for gradual assembly.
First, in the “Food Union” fresh dairy products workshop, an automatic cream cheese filling, labeling, and palletizing machine worth 440,000 EUR will be installed. This will allow to accelerate the production process of the brand “Rasa” cream cheese, which is highly popular in Latvia and in export markets.
In addition, an automatic packaging, labeling, and palletizing machine for curd snack will be installed, valued at 701,000 EUR. It will ensure a more efficient production of this highly favoured product group amongst consumers, most recognized by buyers in Latvia, Lithuania, and Estonia under the name of the legendary brand “Kārums.”
Finally, an automatic ice cream packaging line valued at over 1.6 million EUR will be installed at the “Food Union” ice cream competence centre. Thanks to this, packaging of consumer beloved ice cream brands such as “Pols,” “Karlsons,” and “Ekselence” will finally become fully technology-driven, which will contribute to faster production of these products and even greater availability in stores.
Artūrs Čirjevskis, CEO of “Food Union” group in Europe and Member of the Board of “Rīgas piena kombināts”, comments: “In a modern food production facility, everything, but most importantly, everyone has to do something that contributes to higher productivity. Production equipment must be highly automated and modern to ensure that filling, labeling, and packaging of products is not only fast but also of high quality and safe. Meanwhile, human resources should be redirected towards tasks that add higher value, such as developing new recipes, servicing technological equipment, and overseeing production processes and product quality control.”
January 17, 2024, Riga, Latvia – Food Union Europe, a leading provider of ice cream and other frozen treats to consumers in six European countries, is pleased to announce the appointment of Soren Lauridsen as the Executive Chairman of the organization, effective January 15th, 2024.
“It is with great enthusiasm that we welcome Soren Lauridsen as the Executive Chairman of Food Union Europe. In this pivotal role, Soren will spearhead the pursuit of growth opportunities and operational efficiencies across the Food Union group’s diverse business units. His wealth of experience, vision, and strategic decision-making skills are going to be key assets in setting business priorities and fostering the development of talent within the organization,” said Lincoln Pan, Partner and Co-Head of Private Equity at PAG.
This newly established Executive Chairman position reflects Food Union Europe’s commitment to strategic leadership and growth. Soren Lauridsen will report directly to the Supervisory Board of Food Union Europe, while Arturs Cirjevskis, CEO of Food Europe, will report to him.
“I’m excited to return to Europe, where my professional career in FMCG begun, and particularly to joining Food Union Europe at this pivotal moment. My previous expertise lies in driving long-term business performance through strategic growth, initiative implementation, and fostering diverse, collaborative teams. I look forward to working with the talented teams across Food Union companies, contributing to their continued success. I also want to express my gratitude to our investment partners at PAG and to our Supervisory Board for their trust in this journey of growth and innovation,” added Soren Lauridsen, Executive Chairman of Food Union Europe.
With over 30 years of leadership experience spanning diverse industries, business functions, and countries, Soren Lauridsen’s background includes roles in branding, marketing, and sales within the FMCG industry, with a particular emphasis on ice cream, food, and beverage categories in leading companies in the Nordics and Poland. Since the early 2000s, he has held national and regional leadership roles in the beverages, health, and personal care industries across Asia Pacific countries. For the past 6 years, Soren has been CEO South Asia at Guardian (DFI Retail Group), a leading Health and Beauty retail chain with over 1300 beauty and health stores across Malaysia, Brunei, Singapore, Indonesia, Vietnam, Thailand and Cambodia.