The extended agreement is designed to improve cost efficiency for both firms' sales networks. Cerealia Foods will start selling Raisio's Carlshamn Mejeri brands and other products in Sweden in January 2004. Raisio Nutrition's sales network will start selling the mainly cereal-based product portfolio of Cerealia Foods in Finland in May 2004.
Cerealia Foods is a part of Cerealia, one of the largest food groups in Scandinavia with a turnover of approximately €1 billion. Its brands include AXA, Start, Regal, Kungsornen and Hatting.
Cerealia is a longtime partner of Raisio and owns a 25 per cent stake in Raisio's milling company Melia. Cerealia Foods recently bought five companies focused on vegetarian and healthy food products from its parent firm, promising to increase its health offering.
"We strongly believe that this will be favourable for our customers as well as for the two companies," said Raisio.
The firm's Life Sciences unit makes the cholesterol-lowering ingredient Benecol.