Entering and consolidating the Danish Market 1988-1995

Acquisition of Paaskebr?d – a strategic move?

In 1988, Lantm?nnen took a bold step in expanding its bakery business by acquiring the small but renowned Danish bakery, Paaskebr?d. This acquisition was a strategic move aimed at consolidating Lantm?nnen’s presence in the Danish market and leveraging Paaskebr?d’s strong product portfolio.?

Paaskebr?d, founded by Julius Paaskesen, had made a significant mark in Denmark with its innovative oblong hot dog rolls. These rolls became a staple in Danish hot dog stands, which had been thriving since the 1950s and Julius Paaskesen began mass-producing his oblong hot dog rolls in Paaskesen’s bakery in Glostrup outside Copenhagen.

At its peak, Paaskebr?d’s production line could churn out 144,000 rolls per hour, showcasing its capacity for high-volume production. Paaskebr?d also bought a professional American production line to produce hamburger buns for the first Burger King in Denmark – outputting 25,000 buns an hour. It was a huge bet for the small family-owned bakery but also a first sign of what could be achieved by operating in a niche and having a strong product focus.?

Strategic expansion

Acquiring Paaskebr?d was a strategic decision influenced by the rising significance of the European Economic Community (EEC), and the expansion in 1972 which included Denmark, Ireland, and the United Kingdom. Sweden and the Swedish farmers watched as the inner market grew stronger. During the 1980s Paaskebr?d had expanded its business activities to the southern parts of Sweden, where the company’s oblong hot dog rolls were challenging the traditional Swedish version of a hot dog with mash. As a response to the rising of the EEC and to protect its home market, Lantm?nnen’s bakery business (at that time called Cerealia) bought Paaskebr?d in 1988 – and with it Paaskebr?d’s CEO, Bent Pultz Larsen.??

From 1988-1995 and under the leadership of Bent Pultz Larsen, Paaskebr?d, alongside other key figures like VP Erik F. Nielsen, embarked on a mission to consolidate the Danish bakery market.? At that time the Danish bakery industry consisted of a lot of small-scale operations just waiting for an upgrade to mass production. In 1989, Paaskebr?d bought Karup Br?d, where the local baker had invented a whole new type of hot dog concept, the “French hot dog”, named after the baguette-like bread type. Besides French hot dog rolls, Karup Br?d also made mini flutes and breakfast rolls.??

Paaskebr?d continued the consolidation of the Danish market by acquiring Dana Foods (expanded capacity for making mini flutes), Trianon Bakery (access to the retail market), Danish Fast-food Products (access to the German market), and Bakkeg?rden (butter cookies) in just two years from 1990-1991.

Both Bakkeg?rden and Trianon Bakery were quickly sold again because of a lack of focus.?

A new era with Hatting

The first big move for Paaskebr?d – who in the meantime had changed its name to the more internationally orientated Dana Foods – was the acquisition of Hatting Bageri in 1995. At that time, Dana Foods had grown to a 700 million DKK business. By acquiring Hatting Bageri those figures doubled to a turnover of approximately 1.5 billion DKK.

After Hatting Bageri joined Dana Foods, Cerealia merged its Swedish and Danish bakery production to consolidate everything in Denmark with Bent Pultz Larsen at the head of the table. As part of the acquisition Dana Foods was renamed Hatting Bageri, and the company moved its headquarters to Horsens in Jutland, where Hatting was founded.?