New Strategy Points Lantmännen Unibake in the Right Direction

Pandemic, Russia's invasion of Ukraine, and a shocking inflation surge. Crises have followed one another in recent years, forcing Lantmännen Unibake to adjust its course. With a new strategy in place, they successfully increased sales volumes for their international business during the first tertial of the year.
"Don't put all your eggs in one basket" is a saying that aligns well with Lantmännen Unibake's operations. While sales in the Nordic countries have declined in recent years due to rising inflation, interest rates, and energy costs, Unibake's other markets have performed better.
"If Unibake had not developed as an international company with operations in over 20 countries, we would not have managed as well. Our global perspective and diversified business help spread and mitigate risk," says Carsten Lyngsø Thomsen, CEO of Lantmännen Unibake.
At the same time, geopolitical developments have undeniably impacted Unibake. The company sold its successful operations in Russia after the invasion of Ukraine and needed to find a new strategic direction.
A Strategic Review
When Carsten Lyngsø Thomsen took on the role as CEO of Unibake in the fall of 2022, he initiated a review of the company.
"It showed that Unibake was already well-managed and healthy, but that we needed to make some adjustments to ensure growth," he says.
The result was an updated strategy named Growing Sustainably, launched in March 2023 (see fact box). The strategy aims to drive Unibake's growth in terms of products, sales channels, and geographical markets—while minimizing climate impact. The focus is on strategic initiatives for continuous improvement.
"I am impressed by how our various business units in all countries have worked together to implement our strategy. We have successfully communicated and executed changes, which makes me both proud and happy," says Carsten.
A Focus on Cost Leadership
One area of success is the work on cost leadership. Unibake has optimized its production processes, including simplifying its product range, logistics chains, and procurement. As a result, the company can now respond more quickly to changing market conditions and customer demands, strengthening its competitive position. Unibake has also identified new growth markets.
"Romania and the surrounding region have significant growth potential. Consumption trends there are following the same patterns we have seen previously in Western Europe, with an increased focus on bake-off products," he says.
A new facility with three production lines is currently under construction in Romania. The first line is operational, with the other two scheduled for completion by the end of 2024 and 2026, respectively. Two of the lines will produce bake-off products, while the third will manufacture hot dog and hamburger buns.
"I am extremely grateful that our owners, Lantmännen's members, are willing to make long-term decisions. Even though there are significant growth opportunities, it takes courage to invest in Romania, for example," says Carsten Lyngsø Thomsen.
The U.S. has also been given higher priority than before.
"We have shifted our growth focus from eastward to westward markets. Despite the physical distance, the U.S. is of strategic significance and interest. We are currently conducting feasibility studies and see substantial growth opportunities," he says.
Looking Ahead
The Growing Sustainably strategy remains in place for the future. A recent evaluation shows that most of the conclusions from 2022 still hold, with some modifications.
"We initially anticipated a recovery in the Nordic countries in 2024. Now, we believe it will take until mid-2025 before Sweden, Norway, and Denmark return to more normal consumption levels. We also see that geopolitical instability has accelerated. Additionally, we must continue focusing on retaining skilled personnel. Even though unemployment is rising in several markets, we cannot afford to relax—we must keep working to build a world-class organization," says Carsten Lyngsø Thomsen, adding:
"One advantage and strength we have is our long-term approach, presence, and knowledge throughout the entire value chain, from farm to fork. We owe this to our members and the fact that we are part of Lantmännen."
Lantmännen Unibake...
...Operates in more than 20 countries, runs over 30 industrial bakeries, and sells products in over 60 countries worldwide and employs approximately 6,000 people globally.
Growing Sustainably
The strategy is built on four pillars and aims to drive Unibake’s growth sustainably:
Maintaining Strong Positions through an action plan to:
- Defend and develop market-leading positions.
- Expand presence in the fast-food segment.
- Accelerate growth in pastries and sweet breads, particularly within the U.S. pastry business.
Enhancing Competitiveness by:
- Simplifying the product range.
- Optimizing production infrastructure.
- Strategically investing in central and regional facilities to create economies of scale.
Future Investments by:
- Actively seeking acquisitions in selected regions and categories.
- Building a leading position in Danish pastries in the U.S. and continuing expansion in Southeast Europe.
Operational Excellence through:
- Improving data-driven decision-making, collaboration, and knowledge-sharing across regions and countries.
- Strengthening planning and sales processes.