Sustainability and quality offer opportunities for growth by Nordic-based company, HKScan Group, which has announced new objectives that will focus the firm’s future efforts on meat - especially poultry - and meals.
With a new approach that the firm says offers it a unique position within the Nordic food industry, the Board of Directors of HKScan has approved the new emphasis on the consumer by leading the food value chain. Social and environmental responsibility are also key to the company’s future growth plan.
Opportunities for growth
“We see opportunities for growth,” said Jari Latvanen, group president and CEO at the launch of the firm’s new strategy. “There are several consumer trends supporting the growing demand for sustainably produced high-quality food. We are confident that by creating innovative products and concepts that appeal to consumers, we can strengthen our brands and drive category growth. We set high quality standards in everything we do. By stressing high-quality and sustainability, we can build sustainability a differentiating edge for both Nordic and international markets.”
Strategic focus areas will see HKScan aim to achieve a leading position in its Nordic home markets- Finland, Sweden, Denmark and the Baltic States- and to develop wider international growth with a focus on Asia.
In terms of products, core businesses will be meats and meals. Although the firm will have a presence in all price segments, it aims to drive growth by strengthening its position in the upper mainstream and premium sectors of the market.
Achieving leadership in poultry meat is among HKScan’s new key objectives. To this end, it has recently inaugurated a new poultry processing plant in Rauma, Finland.
As well as driving efficiency and cost-competitiveness in all areas of activity, HKScan aims to further cooperate with the farming community by building partnerships with its producers to source responsibly-produced and high-quality raw materials for the firm’s innovative product lines.
Financial objectives
With the launch of the new strategy, the company’s long-term financial objectives remain unchanged, including operating profit of more than four percent of net sales, and dividends above 30 percent of new profit.
Earlier this month, HKScan admitted to a lapse in animal welfare standards at its hatchery in Estonia revealed by local media.
“We sincerely apologize for this case, which is in sharp contrast to our principles,” said Anne Mere, EVP Baltics at HKScan Corporation in a statement. “It is our obligation to ensure unviable chicks are being culled without undue delay, even if the equipment does not work properly. Hence, we will make every effort to raise the awareness of both employees and managers that they adhere to our guidelines.”
