Raisio - Company Announcement

Raisio to restructure its UK cereal business

Raisio plc, Stock Exchange Release, 9 October 2015, at 8.30 a.m. Finnish time

RAISIO TO RESTRUCTURE ITS UK CEREAL BUSINESS

Raisio's Snack & Cereal business targets growth in its key markets in Finland
and the UK. The UK's Snack & Cereal business includes snack bars and breakfast
cereals. In terms of the cereal business, achieving the growth target requires
streamlining of cost structure, restructuring of operations to respond to the
current operating environment and market conditions as well as product range
meeting consumer needs. Raisio will enter into a consultation process in the UK
concerning the employees and activities of the Southall site located near
London. 

In recent years, consumer behaviour and the demand for breakfast cereals have
been changing in the UK. This has led to the decline of the entire cereal
market and increased competition. Sales volume for Raisio's cereals has
decreased and profitability of the business has turned negative. With the
reduced sales volume, fixed costs of the Southall site further restrict
profitability improvements despite the efficiency improvements already carried
out. 

The consultation process in line with the British legislation concerns 99
employees at the Southall site. As alternatives, Raisio is considering a
proposal to relocate or outsource the manufacturing currently based at
Southall, whilst considering a possible site closure. 

Tomi Järvenpää, Vice President of Raisio's Snack & Cereal unit, says that a lot
has been done with the current operational model to improve the profitability
of the Southall site and to have cereal sales back on growth track. “To ensure
future success, it is extremely important that we develop our activities so
that our product range meets current and future consumer needs and that we
maintain our competitive edge in local and international markets. Raisio's
strength is the ability to innovate delicious, healthier and ecological
snacks.” 

RAISIO PLC

Heidi Hirvonen
Communications and IR Manager
Tel. +358 50 567 3060

Further information:
Tomi Järvenpää, Vice President, Snack & Cereal unit, tel. +358 40 547 6020



Raisio plc

Raisio plc is an international specialist in plant-based nutrition. Raisio's
operations are divided into two divisions: Brands and Raisioagro. The Group's
key market areas are Finland, Great Britain, the Czech Republic, Russia and
Poland. Markets for cholesterol lowering Benecol products are global. Raisio
plc's shares are listed on NASDAQ OMX Helsinki Ltd. Raisio's turnover in 2014
was EUR 494 million. The Group employs some 1,800 people. Raisio's best-known
brands are Benecol, Benemilk, Elovena Honey Monster, Fox's and Poppets.
Benemilk feeds for milk production and Benecol for cholesterol lowering are
Raisio's top innovations. For more information on Raisio go to
www.raisio.com/en 





Distribution
NASDAQ OMX
Key media
www.raisio.com