Two of Food Union’s dairy brands – Kārums and Rasēns – have joined the circle of supporters for the XIII Latvian School Youth Song and Dance Festival this year. Kārums provides delicious and inspiring support to thousands of participants across Latvia, while Rasēns will support festival participants during the event. This year, both brands become the unifying flavors of the festival, symbolizing friendship, togetherness, and support for the new generation proudly carrying Latvian cultural traditions forward.
Kārums – a trusted festival partner for 20 years
Latvia’s most beloved dairy brand and Food Union’s pride – Kārums – is supporting this festival for the 20th consecutive year, becoming an inseparable part of the festival tradition. With generous curd snack donations throughout Latvia, the brand delights participants throughout the preparation process.
During the rehearsal period alone, over 50,000 delicious curd snacks have already been enjoyed, and this number continues to grow.
“As the festival’s grand finale approaches, Kārums is preparing a special surprise! Additionally, the Kārums crow, valuable curd treats, and other surprises will be present at all festival venues to celebrate,” says Ieva Lejniece, Marketing and Innovation Director.
Rasēns – the children’s favorite dairy brand, joining the festival supporters for the first time
This year, the festival’s supporters also welcome Rasēns – the beloved milk and yogurt brand for children and youth – for the first time.
“Rasēns will inspire festival participants to be active, creative, sing, and dance with all their hearts. During the events, it will provide surprises that will bring energy and joy, ensuring the festival runs at full power and with genuine smiles,” says brand manager Estere Ermale.
Seven awards, four brand products, three countries, and immense consumer love – that’s how our Food Union team performed in the international market and consumer research company’s NielsenIQ study of the best new products of 2024.
Triumph in mational rankings
In Latvia, the legendary brand Karlsons took the 1st place in the overall ranking for new products across all categories with its new chocolate and vanilla ice cream with cranberry jam in chocolate glaze – an absolute leader in Latvia!
Meanwhile, the iconic curd snack brand Kārums secured 2nd place with its special blueberry curd snack in chocolate glaze, created by the people of Latvia in honor of the brand’s symbol, the Crow, which celebrated its 30th anniversary last year.
In Estonia, the Premia Eriti Rammus brand took 2nd place in the overall ranking with its salty caramel ice cream in a large waffle cone.
Leaders in ice cream and dairy product categories across the Baltics
Notably, Food Union ice cream treats were recognized as the best new products in the ice cream category in all three Baltic countries:
Latvia – 1st place for Karlsons chocolate and vanilla ice cream with cranberry jam in chocolate glaze.
Estonia – 1st place for Premia Eriti Rammus salty caramel ice cream in a large waffle cone.
Lithuania – 1st place for Klasika mango ice cream in a waffle cup.
Meanwhile, in the dairy product category in Latvia, the top spot went to the aforementioned Kārums blueberry curd snack.
Ieva Lejniece, Food Union Marketing and Product Research and Development Director, commented: “Reflecting on our product achievements in the 2024 NielsenIQ results, I want to highlight three key aspects. First, the seven awards are a testament to our unwavering commitment to consistently creating new, innovative products that delight and inspire. Second, one of our core values is truly listening to our consumers — we do this systematically by tracking feedback on social media and in the press, as well as organizing focus groups and national surveys to understand, for example, which Kārums curd snack flavors people most want to find on store shelves. Third, we are especially delighted by Karlsons‘s victory in Latvia – it is rooted in our ability to combine innovation with local tradition, highlighting the Latvian superberry, the cranberry, in the recipe. A heartfelt thank you to our entire team, who every day passionately create such outstanding dairy products and ice creams, and to everyone who chooses Food Union products for their daily enjoyment and family moments. We promise that this year, we will continue to surprise Latvia with exciting, unique, and never-before-seen innovations!”
We are pleased to announce that our brand’s “Tio” mango and raspberry ice cream “VĒSMA” on a stick has won 1st place in the prestigious “Plant-based Product of the Year 2024” competition in the desserts category!
Ģirts Liniņš, brand manager of “Food Union” ice cream: “This year, VĒSMA is celebrating its 50th anniversary – exactly half a century ago, this ice cream brand was born at the Rīgas Piena Kombināts, which is now the main production facility for ‘Food Union’ in Latvia. Last year, we gave it a new twist by launching vegan ice cream production. Therefore, this double win in the ‘Neapēd Zemeslodi’ competition, where our two VĒSMA ice creams on sticks – one with raspberry flavor and the other with mango flavor – were recognized as the most beloved plant-based ice creams in Latvia, feels like a heartfelt birthday gift and a strong quality endorsement! We are grateful to everyone who voted, tasted, and believed in VĒSMA’s new form. And, of course, this is just the beginning – this summer, VĒSMA will continue to refresh, inspire, and surprise. Stay tuned for updates!”
We thank everyone who voted, tasted, and appreciated our product. Long live ice cream, long live VĒSMA!
Latvia’s leading dairy processing company, Food Union Latvia, which has been developing the beloved childhood ice cream brand Pols, is marking the approach of the brand’s 55th anniversary in 2026 by launching a collaboration with a team of street artists led by Dainis Rudens. Together, they will gift a street art wall to the residents of Riga. The artwork will cover a 300-meter-long reinforced concrete fence that surrounds the Food Union Latvia ice cream factory – the place where Pols ice creams have been produced since 1971 on Jāņa Čakstes gatve. Over a two-year period, the company will invest up to 50,000 euros into this art project.
“Pols – always young. Always.”
Pols is not only one of the most beloved and best-selling ice cream brands in Latvia, but also one of the most tradition-rich. Created in a custom-built four-story ice cream factory within the Rīgas piena kombināts complex, Pols was among the first industrially produced ice creams in Latvia, dating back to 1971. Today, all varieties are still made in the modernized factory, which also serves as Food Union Latvia Ice Cream Development and Production Centre for other companies across Europe.
“Pols will turn 55 next year. It’s surprising, yet Pols never seems to age – it continues to be the favorite ice cream since childhood for both those born in the 70s and those who are enjoying their childhood today, with some perhaps tasting their first Pols this summer. We want to celebrate this ‘endless youth’ of Pols together with its fans and mark the anniversary with a beautiful project that will be appreciated by kids and adults alike – a street art wall next to the Pols factory,” says Pols Brand Manager Ģirts Liniņš.
The Pols Street Art Wall
“Each time I watch the urban environment evolve, it brings me genuine joy. New street art and monumental facade murals signal a growing cultural awareness and social development. Murals make a meaningful contribution to the community – they help shape neighborhood identity, highlight core values, and foster a sense of local pride. That’s also the broader goal of this project,” explains Dainis Rudens.
The reinforced concrete fence surrounding the Pols factory is located on Jāņa Čakstes gatve, just after crossing the Southern Bridge toward Pārdaugava. It stretches approximately 300 meters, and this year, the artist team – Dainis Rudens, Bikti, Skrūve, Ulman Art, and Erksa – will paint about half of its length.
The art project will unfold in three stages:
By April 30, artists will develop around 10 design sketches for the mural;
From May 1 to 8, Pols social media followers and Food Union Latvia employees will vote on their favorites, selecting up to five large-format artworks to feature on the wall, with public announcement of results by May 12;
From May 12 to June 14, the selected designs will be painted on-site by the artists, culminating in a public opening event for the completed wall.
The Pols Brand
The origins of the Pols brand date back to 1971, when production of the classic Pols ice cream began in the newly built factory on Bauskas iela 180 — exactly the same recipe as used today. Made from the finest milk sourced from Latvian farmers, the ice cream has remained faithful to its original recipe and to the legendary polar bear featured on the packaging.
Today, the Pols brand boldly, openly, and playfully keeps pace with the times, continuing to launch exciting new products while preserving the joy of childhood. The Pols product range includes many beloved and popular formats – Pols in a crispy waffle cone, Pols with a large waffle cap, Pols ice cream sandwiches, Pols bars, and more. Very soon, Pols will also introduce its new ice cream lineup for the summer 2025 season.
Latvia’s leading dairy processing company, Food Union Latvia, on April 11 of this year, presented an award to Harijs Panke for his lifetime contribution to the leadership of Food Union companies and to the development of the independent Latvian dairy industry over the course of more than 45 years. With this, Harijs Panke concludes his active professional career in company leadership and in representing the interests of AS Rīgas Piena Kombināts and the company’s representation in the Central Union of Latvian milk manufacturers.
“Harijs Panke has been a key figure in the success story of Latvia’s leading dairy processing group for more than 45 years. His contribution to the operational leadership of AS Valmieras Piens in the early stages of its development, and later – in representing the interests of Food Union Latvia with fresh milk suppliers, industry stakeholders, regulators, and lawmakers – has been truly invaluable!
Harijs is someone colleagues look up to with immense respect, turn to for advice, and draw inspiration from, both in critical moments for the company and in day-to-day routines. His experience, humanity, and clear vision have served as an example for many. On behalf of the entire Food Union Latvia team, we express our heartfelt gratitude to Harijs for this shared journey,” said Artūrs Čirjevskis, Food Union CEO in Europe and Latvia.
“I am happy and grateful for the wonderful opportunity to work for such a long time in this sector, which is so characteristic of our Latvia, rich in tradition and of great importance. I am thankful to my wonderful colleagues, outstanding dairy farmers, partners, and especially to the consumers.I take pride in the young people in our industry, from whom I’ve learned so much – creativity, enthusiasm, and the courage to pursue even crazy ideas. It is precisely the youth in dairy farming and processing who give hope for a bright future in this sector.
There is still so much to be explored and discovered. The future holds exciting research, promising breakthroughs, and the emergence of new and excellent products. This is what I wish for my dear colleagues at Food Union Latvia – to keep learning and exploring, researching and discovering, experimenting and not fearing mistakes, and through perseverance, to reach a new, higher level for consumers and society. And to keep doing so year after year!” commented Harijs Panke.
Harijs Panke graduated in 1975 from the Latvia University of Agriculture (now Latvia University of Life Sciences and Technologies) as a dairy technologist, starting his career as a production manager in the Aloja and later the Jaunpiebalga dairies.
His career in Valmiera began in 1975 – initially with associated companies, starting as production manager in the Aloja dairy and later as director of the Jaunpiebalga dairy. Since 1980, he served as production manager at the main plant in Valmiera. From 1994, he held the position of board member and later chairman of the board at AS Valmieras Piens, a role he fulfilled until 2008. After that, he served for three years as chairman of the board of AS Valmieras Piens, and later, from 2011 to 2013, he returned to the role of board chairman at the dairy processing company.
Since 2013, Harijs Panke has been Deputy Chairman of the Supervisory Board of Rīgas Piena Kombināts, another company within the Food Union Latvia, and since 2015, a board member of the cooperative society Central Union of Latvian milk manufacturers. In December 2024, Harijs Panke ended his work in both organizations.
Latvia’s leading dairy processing company, Food Union, which develops one of the country’s most tradition-rich dairy brands, Valmiera, has introduced three new, plain yogurts, along with a fresh visual identity for the brand. This new identity not only better reflects the diverse range of Valmiera’s products – set to expand further with high-value offerings – but also embodies the brand’s modern yet warmly simple character in its packaging and communication. EUR 100 000 invested in the development and rebranding of Valmiera’s plain yogurt.
Three New Plain Yogurts from Valmiera
The Valmiera traditional dairy product range has welcomed superproducts – high-protein yogurts with reduced fat content, lactose-free, and without added sugar:
Valmiera’s plain yogurts are a filling yet nutritious choice, enjoyable on their own or as part of various meals. Their mild taste and creamy texture set them apart from other products on the market.
Agnese Kleinmane, Valmiera’s brand manager, explains: “It’s time to turn a new page in Valmiera’s development! We have created a new visual identity and product strategy focused on more modern, high-value products. The first of these is our new additive-free yogurt line, which invites consumers to take a closer look at yogurt ingredients, embrace the benefits of ‘good fats,’ and find their ideal yogurt type. We designed these products for everyone looking to increase their daily protein intake while making small yet impactful improvements to their eating habits.”
Valuable Ingredients in Sustainable Packaging
Valmiera’s new additive-free yogurts stand out not only for their nutritional value and taste but also for their sustainable packaging. They come in cups made from fully recyclable polypropylene plastic, considered one of the most sustainable packaging solutions for dairy products. Consumers are encouraged to rinse and dispose of the cups in yellow recycling bins after use.
Compared to similar products on the market, Valmiera’s plastic cups have been improved by making them 15% thinner. This maintains all quality and safety standards while reducing the amount of plastic needed for recycling. In addition to the plastic cup, Valmiera’s yogurt labels are printed on recycled cardboard, including full ingredient details and inspirational recipes for using these yogurts in meals.
Valmiera’s New Look Reflects the Brand’s Evolution
With the launch of plain yogurts, the Valmiera brand introduces a new logo and visual identity, which will be gradually rolled out to other existing and new products throughout the year.
The goal of these changes is to clearly communicate Valmiera’s development direction – to become the top choice for those who prefer high-quality dairy products, thanks to Valmiera’s commitment to quality, sustainability, and nutrition guidance. The brand aims to help everyone easily care for their well-being and that of their loved ones.
Starting with plain yogurts, Valmiera’s product range will continue to expand with modern, high-value options that come with clear health benefits, such as higher protein content, lower fat, no added sugar, and lactose-free options.
At the same time, Valmiera’s new visual identity is a modern interpretation of the brand’s traditions –contemporary, clear, and direct, while remaining warm, family-friendly, and welcoming in communication.
Responding to consumers’ desire for products with reduced sugar content, Latvia’s leading dairy company “Food Union” (part of Food Union Group) has developed a new product under its popular children’s flavoured milk brand “Rasēns” – a strawberry-flavored “Rasēns” with 30% less added sugar. Maintaining its consistently great taste, added vitamins, and calcium, “Rasēns” has now become even more attractive to children and parents who monitor their overall sugar intake!
As the trend toward healthier daily habits grows, consumers are paying more attention to the composition of food products, particularly evaluating their sugar and salt content. Parents, in particular, are increasingly mindful of their children’s diets, striving to provide healthier alternatives with lower sugar levels.
This approach is also encouraged by the World Health Organization (WHO) globally and the Ministry of Health at the local level. The WHO recommends monitoring daily sugar intake, ensuring that children aged 2 to 6 years do not exceed 10% of their total daily energy intake from sugar, with an ideal reduction to 5%, which equates to approximately 15–20 grams of sugar per day, or 3–4 teaspoons. Additionally, the Ministry of Health’s Cabinet Regulation No. 172 sets restrictions on salt and sugar levels in children’s diets—both in food products and beverages—within educational institutions. This includes limiting added sugar in dairy products to 5 grams per 100 grams or 100 milliliters of the product.
“All ‘Rasēns’ milks, containing between 4.6–4.9 g of added sugar, already comply with Cabinet Regulation No. 172 regarding limited added sugar content. However, the new strawberry ‘Rasēns’ with just 3.4 g of added sugar is now an undisputed leader in this dairy product category for those who prefer lower-sugar options,” emphasizes Estere Ermale, “Food Union Latvia” dairy product brand manager.
“This is currently the first and only ‘Rasēns’ product with reduced sugar content, expanding our existing range of five products. However, we plan to continue developing a ‘less sugar’ product line to meet consumer preferences,” adds Estere Ermale.
“Rasēns” milk is available in chocolate, strawberry, caramel, and banana flavors, as well as in its classic plain milk variant. “Rasēns” classic milk is the largest participant in the “Milk and Fruit for Schools” program.
Following the global trend of reducing sugar content in food products, Latvia’s leading dairy processing company “Food Union” (par of Food Union Group) has introduced a new less sugar product line in the legacy brand “Kārums” range. For the first time in the brand’s history, three glazed curd snacks have been created with 30% less sugar and are lactose-free!
These new vanilla, raspberry, and peach curd snacks, coated with the classic “Kārums” chocolate glaze, are perfect for those connoisseurs who seek treats tailored to their dietary needs and preferences. The total investment in the development and market launch of the new product reaches 100,000 euros.
Less sugar and lactose-free – more opportunities to enjoy
All three curd snack recipes were developed at the “Food Union” Fresh Product Excellence Centre in Riga, where the company’s technologists paid special attention to preserving the signature taste and texture of “Kārums” while offering a nutrition alternative suitable for a broader audience.
The new “Kārums” curd snacks stand out with 30% less sugar content and, consequently, a less sweet taste. This is especially suitable for consumers who pay attention to the sugar content in their diet or simply aren’t big fans of sweets. At the same time, thanks to the lactose-free curd and glaze, these curd snacks are also suitable for those who avoid lactose, the natural milk sugar that is often difficult to digest.
Furthermore, the new vanilla curd snack contains 72% curd, which is 9 percentage points more than the classic vanilla curd snack. Similarly, the raspberry and peach curd snacks also contain more curd, reaching 69% of the total composition. All new products are free from sweeteners, plant fats, and preservatives, maintaining a clean and simple composition.
Ilva Veidemane, “Food Union Latvia” dairy product brand manager, explains: “‘Kārums’ has been a trusted companion for big and small sweet tooths for years. However, we are always looking for new ways to make this treat even more accessible. This time, we have ‘broken down’ two major barriers – lactose and sugar. Those who avoid milk sugar or want to reduce their overall sugar intake can now enjoy ‘Kārums’ without worry. We know how important the right taste and texture are, so we’ve kept everything people love – the soft curd texture, the delicious chocolate glaze, and a rich flavor bouquet. These three new curd snacks are another step toward making ‘Kārums’ available to anyone who loves tasty treats.”
Availability and overall assortment
Initially, the new “Kārums” curd snacks will be available in Latvia, and soon in Lithuania and Estonia. In the future, they are also planned to be offered in the company’s export markets.
With the launch of these 3 less sweet curd snacks, the “Kārums” range now includes 38 products. In the sweet snack category, there are five product types – 18 curd snacks, as well as multipacks, 5 sour cream creams, 6 bifido yogurts, 3 curd desserts, and 2 curd creams. Meanwhile, the salty “Kārums” range includes 3 fresh cheeses with and without additives.
For more information about the “Kārums” brand: www.karums.eu
This Christmas will taste exquisite as Latvia’s leading dairy company, “Food Union”, expands its “Ekselence” dessert ice cream offering. As a result, during the 2024-2025 off-season, the company introduces two spoonable novelties, developed and launched in the Latvian market with an investment of approximately €40,000.
Following the traditions of the gourmet brand “Ekselence”, the new ice cream recipes have been crafted by leading “Food Union” food technologists at the company’s Ice Cream Competence Center, located in Riga, Bauskas Street 180. The main ingredient of both novelties is premium-quality cream, combined with refined flavor notes that align with global trends and will delight even the most discerning gourmands during the holidays and in everyday life.
Festive liqueurs in ice cream
The highlight of the winter collection is a completely new and unique flavor – creamy “Ekselence” ice cream with egg liqueur flavor, egg liqueur-flavored sauce, and rum-soaked raisins. This ice cream offers a velvety texture and juicy contrast, appealing to experienced ice cream enthusiasts and lovers of festive vibes.
Salted caramel and pecans
The second novelty of the collection is creamy “Ekselence” ice cream with salted caramel sauce and caramelized pecans. Previously, this perfect balance of sweetness and saltiness was available in a 1-liter family pack, and now it has been designed for indulgent moments in a 500 ml package.
Ģirts Liniņš, brand manager of “Food Union” ice cream: “Christmas is always associated with bustling kitchens, preparing festive tables, and that special feeling when miracles are possible. This year, with the new “Ekselence” ice creams, we wanted to bring the same magic to modern desserts. The egg liqueur ice cream with rum-soaked raisins is like a culinary ‘golden classic’, while the combination of salted caramel and pecans caters to the tastes of modern gourmands. These ice creams tell a story of excellent traditions meeting the present day, created to make the holidays even more special and winter evenings warmer and sweeter”.
Availability and range of “Ekselence”
Both new winter collection “Ekselence” dessert ice creams are already available in shoppers’ favorite stores across Latvia. Currently, the “Ekselence” range includes 25 types of ice cream. Seven are offered in family packs, three in crispy waffle cones, four in carton boxes, and one on a stick. Additionally, the brand’s range features ten HoReCa-type ice creams.
You can explore the full “Ekselence” range here: https://www.foodunion.lv/produkti?Brands[]=Ekselence.
The Christmas season is about to begin, therefore Latvia’s leading dairy processing company Food Union has been getting ready for it in due time. As a result, the new Kārums curd snack for Christmas has been created. About EUR 25,000 have been invested in development of the product and it will be available in stores across Latvia in limited amounts until January 2025.
Gingerbread and tangerines
This time, the company’s skillful food techologists have chosen to combine the most typical and traditional Christmas snacks in the new Kārums product, blending juicy tangerine and aromatic gingerbread flavors into the curd mass. The curd snack is covered with the characteristic and much loved cocoa glaze.
Ilva Veidemane, manager of Food Union dairy product brands: “We can say that every year is the year of Kārums, but especially we can say it about 2024. This year we celebrated the 30th anniversary of Kārums symbol – the Crow, creating seven new snacks. However, it was not enough, therefore we decided that the eighth novelty should be a cherry on the cake, and it also restores a slightly forgotten tradition – the special Christmas curd snack. A blend of the most characteristic Christmas flavors has been created – Kārums Christmas snack with gingerbread and tangerines. Yes, it really tastes like Christmas, therefore every sweet tooth already now can feel the mood of the upcoming season in the snack.”
Kārums assortment
As the production of Kārums Christmas snack has begun, the assortment now has 37 products. There are five kinds of products in the category of sweet snacks – 17 flavors of curd snacks and a multi-package of curd snacks, 5 sweet cream desserts, 6 bifido yoghurts, 3 curd desserts and 2 curd creams. In the category of savoury snacks, there are 3 kinds of fresh cheese with and without added flavors.
Please find more information on the Kārums brand: www.karums.eu
As the celebration of the 30th anniversary of Kārums, the most loved food brand across the Baltic region, symbol – the Crow – continues, Latvia’s leading dairy company Food Union has for the first time introduced a line of lactose-free treats in this popular range. This has resulted in the creation of three entirely new Kārums bifido yoghurts which will surprise foodies with their unique flavor, texture and combination of nutrients – they are lactose-free, with healthy BB-12 bifidobacteria and fibers, as well as bits of natural berries, seeds and grains. Total investments made in the development and launch of the new products on the Latvian market is around 70 thousand euros.
Valuable nutrition – lactose-free, with bifidobacteria
The recipes of the new Kārums yoghurts have been developed at the Food Union Centre of Excellence for Fresh Dairy Products, combining the best traditions of making fermented milk products and the modern food industry. The main ingredients of the yoghurts are high-quality lactose-free milk combined with natural added ingredients and probiotic BB-12 bifidobacteria, which promote digestive health and boost immunity.
With fibers and bits of natural berries
Since the new Kārums yoghurts have been created celebrating the Crow’s birthday, their flavors and textures are as expressive as festive fireworks. Drawing inspiration from the composition of flavors of a curd snack that was created by the people in 2023, the lactose-free Kārums bifido yoghurt was created with lingonberries and rye bread, adding grated full-grain rye bread.
Consumers are also offered a lactose-free bifido Kārums with raspberries and muesli, a typical combination of a breakfast meal. This product contains ingredients like oatmeal, raisins, rye flakes, flaxseeds and sunflower seeds. But the third novelty is particularly nutritious – a lactose-free bifido yoghurt Kārums with seeds and grains, including sunflower seeds, oatmeal, flaxseeds and hemp seeds.
Ilva Veidemane, Food Union dairy brand product manager: “The three new lactose-free bifido yoghurts are not only a significant step in the development of the Kārums product range, but also a continuation of the 30th anniversary celebrations of the brand’s symbol – the Crow. We started celebrating in April with a new banana-flavored curd snack and two desserts. At the end of September, we delighted our Crow with a blueberry-flavored curd snack, which was chosen by the people. One might think that the launch of the new yoghurts would be enough to celebrate, but no – this year we have one more surprise in store from our birthday bird, the Crow, to further delight the fans of Kārums products”.
Kārums product range
The three new lactose-free bifido yoghurts of the Kārums range are now available in popular stores across Latvia. With the launch of these products, the Kārums range has grown to 38 products. The sweet snacks category consists of seven types of products – 16 curd snacks, as well as a multipack of curd snacks, 5 sweet creams deserts, 6 bifido yoghurts, 2 cream yoghurts, 3 curd desserts and 2 curd creams. The salty Kārums range includes 3 fresh cheeses with and without added ingredients.
The Crow was “born” in 1994
An interesting historical fact – the Crow is not just as old as Kārums, but a year younger. Why so? Originally, the unique recipe for the curd snack as we know it today and the name of the product – Kārums – were created in 1993. But the symbol that adorned the product wrapping in the first year was a ginger cat. However, in the second year of Kārums’ existence, an iconic change took place: the vanilla curd snack was dressed in orange wrapping and the symbol was changed to the Crow.
Please find more information on the Kārums brand: www.karums.eu
In 2023, Food Union, the leading Latvian dairy processing and ice cream manufacturing company, launched a large-scale investment project aimed at automating the cheese curd, fresh dairy product and ice cream production plants of Rīgas Piena Kombināts. The project aims to speed up and improve the packaging of products, which had until now been done manually. The “robotization” of the Kārums curd snack packaging has now been completed and a similar robot will be installed in the fresh dairy and ice cream production plants by the end of the year. In total, €2.2 million have been invested in the project.
“Food production is moving with the times and innovating to improve the way we work – faster, easier, smarter and more productive! Whereas before this physically heavy task of stacking transport packages on pallets was handled by three people per shift, it is now perfectly replaced by a robot that is manned by two people on all shifts – an operator and an automation technician. The Kārums robot is capable of palletizing 900 boxes of cheeses in an hour and can lift up to 180 kg without any problems. By equipping our factories with such robots, we are slowly saying goodbye to physically demanding jobs that are no longer attractive to people, and instead creating more intellectually challenging and technically exciting jobs,” comments Artūrs Čirjevskis, Head of Food Union in Latvia and Europe.
It was previously made know that three new machines were purchased under the project with the participation of the Rural Support Service. An automatic ice-cream packaging system worth more than €1.41 million was purchased for the Food Union Ice Cream Competence Center. For the modernization of the Fresh Dairy Center of Excellence of Food Union, an automatic curd snack packaging line worth EUR 550,000 and a cream cheese packaging line worth EUR 390,000 were purchased.
In 2023, public procurement processes were completed, suppliers of all equipment were selected and installation work is currently underway, with the first equipment to be installed in the Kārums curd snack production plant. The project will increase Food Union’s productivity, which in turn will lead to increased sales abroad of its most popular export products: ice cream, curd snacks and cream cheese.
The 30th anniversary celebrations of Kārums, Latvia’s beloved national symbol, are in full swing! Responding to the wishes of the people, expressed earlier this spring in the special “Celebrate CAW!” vote, Latvia’s leading dairy company, Food Union, has introduced a new product: the Kārums blueberry curd snack. This anniversary edition snack is already available in stores across Latvia. The investment in developing and launching the product is around 75,000 euros.
The new Kārums has been inspired by the already well-known and popular blueberry curd snack, which had been out of production for several years but was cherished in the memories of its fans. Therefore, thanks to the very active participation of Latvians in choosing the flavor of the curd snack as a gift on the Crow’s 30th birthday, the blueberry curd snack emerged as the winner. The recipe for the new anniversary blueberry curd snack has been completely reinvented – to make it even more delicious than in the memories of the foodies.
Ilva Veidemane, Dairy Brand Project Manager at Food Union: “Representing the Crow, I can assure you that it is very excited about such a delicious gift from the Latvian people! The blueberry curd snack has been a dream come true not only for our brand lovers but also for the Crow itself. That’s why the birthday bird has decided to continue the celebrations by creating more new Kārums snacks, which we’ll hear about very soon”.
Why did the blueberry flavor win?
As part of the “Celebrate CAW!” campaign, we asked people on www.kra30.eu what kind of new curd snack they would like to create and eat to surprise the Crow on its birthday. As usual, voting activity was extremely high – in six weeks (May to June this year), 19,000 foodies created 47,000 versions of the curd snack. The third most popular variety was the Cappuccino-flavored curd snack with nuts in chocolate frosting (5,407 votes), the Tiramisu-flavored curd snack with salted caramel filling in caramel frosting was the runner-up (7,941 votes), while the leader of the vote was the blueberry curd snack with blueberries in chocolate frosting, which received 11,302 votes.
The Crow was “born” in 1994
An interesting historical fact – the Crow is not just as old as Kārums, but a year younger. Why so? Originally, the unique recipe for the curd snack as we know it today and the name of the product – Kārums – were created in 1993. But the symbol that adorned the product wrapping in the first year was a ginger cat. However, in the second year of Kārums’ existence, an iconic change took place: the vanilla curd snack was dressed in orange wrapping and the symbol was changed to the Crow.
The range of Kārums products
With the launch of the blueberry curd snack, the new recipe for which has been developed by the technologists at Food Union’s Centre of Excellence for Fresh Dairy Products, the Kārums brand now has 36 products in its range. The sweet snacks category includes seven product types – 16 curd snacks, as well as a curd snack multipack, 5 sweet creams, 4 yogurts with bifidobacterium, 2 cream yogurts, 3 curd desserts and 2 curd creams. In addition, customers can also enjoy saltier Kārums products – 3 fresh curd snacks with and without added ingredients.
Please find more information on the Kārums brand: www.karums.eu
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.