Uncategorised - Food Union

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 30^th 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

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.

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.