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Fazer has announced plans to consolidate production at its Bakery Baltics division into one modern bakery in Ogre, Latvia. Fazer said that this rearrangement would strengthen its position in the Baltic markets, ensuring competitiveness, widening its product assortments into new categories and further developing its export sales. The factory in Ogre, which would be updated with an €18 million investment from Fazer, would provide one site with with an expanded warehouse for frozen and ambient products, new picking processes and modernised production capabilities. This would improve Fazer Bakery Baltics´ supply chain efficiency, which it says is crucial for all three Baltic markets. Today Fazer has bakeries in Kaunas, Lithuania and Ogre, Latvia. The changes would affect around 185 employees in Kaunas, potentially leading to the termination of employment. The new operations in Ogre would see the addition of 60 employees in Latvia. Anne Mere, MD at Fazer Bakery Baltics, said: “Today we have a strong number two position on the Lithuanian and Latvian markets and a number three position in Estonia and our aim is to strengthen our positions. With one modernised production unit, we will have the opportunity to expand our known brands and product assortments into new categories and to meet different consumer demands even better than before.” The changes come in response to slowing consumer demand for Fazer’s baked goods in the Baltic region. The consumption of packed bread products has decreased in the Baltics for several consecutive years and in the last year the bakery market has dropped in volume by 2%. Mere added: “If these changes would realise, we would do our utmost to support our employees in Kaunas and help them find new jobs. Vacancies in other Fazer Group units would be offered with priority to those employees whose employment would possibly be terminated. We would collaborate with various partners and local employment service.” If the plans go ahead, the transformation of production would commence during the coming autumn-winter period and is expected to be complete by the beginning of 2025.