We sell, market and produce high-quality, responsibly-produced pork, beef, poultry and lamb and meat products such as meals and cold cuts. Our widely recognised iconic brands include HK®, Kariniemen® and Via®.
HKFoods’ home market is Finland. Our production units are located in Finland and in Poland, which enables flexible adjustment of our production capacity and allows us to maximise our efficiency and synergies in developing our offering.
Operating environment
HKFoods business and operating environment are affected by global megatrends. For example, consumer trends and economic cycles have a direct and indirect impact both on our own business and that of our customers.
Through close cooperation with our customers, suppliers and other stakeholders, we strive to anticipate emerging trends in, for example, consumer behaviour, food retail, the food industry and food services in order to help us develop a commercially successful offering.
Meat consumption trends
Meat consumption is showing no signs of decline on HKFoods’ home markets. Meat is eaten by over 90 per cent of the population in our home markets. Meat consumption is continuing to rise globally, and this growth is expected to continue for at least another decade. In Europe, meat consumption is growing by a few per cent per year, owing mostly to growth in poultry consumption.
Consumer trends
Food has become an increasingly important part of our daily lives and consumer identity. It is a widely discussed hot topic both in the media and social media. The links between good health and nutrition have recently been widely covered in the media. Consumers are also taking a growing interest in the environmental impacts of meat production. The following examples of consumer trends directly impact both HKFoods and the entire food industry.
- The changing concept of meal – snacking is on the rise
- Food is part of our identity
- The wellness tracking boom
- Corporate responsibility is the new normal
- Packaging must provide protection, communication and sustainability
Customer trends
The retail industry is in the midst of a major transition. The line between shops and restaurants is being blurred, which is altering patterns of consumer behaviour. Rapid urbanisation is a positive indicator for traditional brick and mortar establishments, provided that they are able to offer services and offerings that are carefully tailored to the needs of specific customers.
International competition and digitalisation are posing challenges for traditional, domestic retail chains. Price competition is growing fiercer. Private-label brands have seized a growing market share and strengthened their foothold also in the fresh meat segment. While the proliferation of digital services is posing a threat to the future of traditional brick-and-mortar establishments, online platforms also present a number of exciting opportunities. Digital platforms offer retailers a new channel for reaching out, serving and interacting with consumers. They provide a real-time environment for faster, more open communication on topics such as food quality, health, origin and traceability and corporate responsibility.
For now, food industry e-commerce remains relatively small in scale on HKFoods’ home markets. The food industry needs to find new ways of getting closer to its key customers, fostering innovation, increasing the visibility of its brands and promoting growth alongside private-label brands. One of the key assets offered by traditional retailers is the high quality and broad selection of fresh foods included in their offering.
Ready-to-heat meals are gaining popularity in the HoReCa segment. Sous vide and other slow-cooked products are also in high demand. Recent trends in the food services sector largely conform to those in the retail segment: on-the-go meals are on the rise and locally-grown meat that is traceable from farm to fork is likewise gaining popularity.
