Nordic bakery to enter local market

The Vaasan & Vaasan Group, a leading bakery company in the Baltic states and the Nordic region, is determined to become the leading wholegrain bread brand in Turkey. The firm's expansion will start with the introduction of new products in Turkey later this year, Harri Nykänen, business development director at Vaasan & Vaasan said last week, according to a company statement.

There is great potential for market expansion in Turkey for three reasons, Nykänen said. "First, there is a massive bread market in Turkey. Consumption has sometimes been double the annual bread consumption in Scandinavia, which varies around 40-50 kilograms per capita," he said. "Second, Turkish consumers, who have traditionally tended to buy white bread, are becoming increasingly aware of the health benefits of wholegrain products such as Finn Crisp. This means organic growth in sales. Third, we have only a limited number of competitors in Turkey. Expansion is a significant opportunity," Nykänensaid.

Vaasan & Vaasan exports eight flavors of Finn Crisp to Turkey. According to Nykänen, Finn Crisp’s main challenge in Turkey is that both wholegrain and dry breads are relatively new concepts to the average Turkish consumer.

"Although the Turkish kitchen is among the healthiest in the world, it does not include much wholegrain bread or rye, partly because rye is cultivated in Northern Europe," Nykänen said. Another challenge has been to overcome the limited sales of dry bread.

Presence in Greece

Vaasan & Vaasan finds that the same challenges apply to Greece, where the company has established a presence. "In fact we are facing the same challenge in Greece. Some Mediterranean consumers find the taste of rye very different, but the key issue here is to inform the consumer on ways to bring added value to the east Mediterranean kitchen," Nykänen said.

Vaasan & Vaasan total net sales of bread products stood at 416 million euros in 2008, of which crisp bread products comprised 44 million euros. The key markets for Vaasan & Vaasan are in the Nordic countries, Russia, Germany, Benelux, North America and Britain.

Finn Crisp already has a strong position in major Turkish cities, especially in Istanbul and the tourist resorts along the Mediterranean and the Aegean coasts. "We are now targeting countrywide expansion and we hope to see a noticeable expansion in sales across Anatolia, including the Black Sea region and eastern Turkey. Turkey’s young population makes the country a very attractive market," Nykänensaid.

Nykänen believes the strongest benefit of Finn Crisp in the Turkish market is its health benefits and growing health awareness among Turkish consumers. He said Finn Crisp contain less than 2 percent fat, making them practically fat free. "Studies indicate the health benefits of wholegrain bread. Wholegrain wheat has high vitamin and fiber content, which is good for the digestive system. It also helps to control weight as it keeps energy levels up for a longer time than white bread," Nykänensaid. A fiber-rich diet has also been found to reduce the risk of colon cancer and to lower cholesterol levels, he said. "A 2003 study found that rye fiber and whole grains have a beneficial effect on the carbohydrate metabolism," he said.