“The international market is just another market and nothing to be afraid of”

Villähteen Leipä, a bakery that attended LADEC’s workshop on international expansion, does long-range and systematic work to enter the international market. In the family company based in the Häme region, the third generation of owners believes that products made of the best groundwater and ingredients in the world will also be in high demand at the tea tables in Central Europe. 

Villähteen Leipä, located in Nastola, Lahti, specialises in frozen baked goods and contract-based production. The bakery founded in 1958 offers sweet buns, hamburger buns and various breads and rolls for the needs of retail, food service and wholesale. 

-  In my father’s time, we were known for our Karelian pasties and sweet plaits. However, the competition for space on shop shelves is high in these categories. At the moment, we aim to offer solutions that others are unable to provide. Frozen unbaked, half-baked and baked goods are where our market is, says Key Account Manager Olli Hämäläinen.

The products by Villähteen Leipä are frozen directly after kneading or baking. Most of us are familiar with unbaked or half-baked frozen products. But what exactly are frozen baked goods?

-  A baked product is first baked to be ready-to-serve, after which it is shock-frozen: taken from the oven directly to a massive freezer where it is frozen in about 30 minutes. 

-  The bun will start releasing moisture as soon as it is taken out of the oven, but the shock-freezing will capture its aroma and moisture inside it. Quick freezing allows the bun to stay fresh, thanks to which it tastes as if it came straight from the oven when it is unfrozen, Hämäläinen explains. 

Olli Hämäläinen with a cup of coffee and delicious pastries.

The tastiest buns in the world

Villähteen Leipä bakes about 6 million bun products in a year. The pastries are made by a team of 15–20 employees, depending on the season. According to the siblings who manage the bakery with a turnover of over three million euros, CEO Hanna Ylä-Mononen, Development Manager Mikko Hämäläinen and Key Account Manager Olli Hämäläinen, the Finnish market is limited. 

-  Our goal is to grow and to do so in new markets. Customers in Central Europe appreciate the world’s best groundwater and ingredients that our products are made of. This much has become clear in taste tests with customers. 

-  However, entering a new market still requires us to establish a product brand that suits the Central European market, reasonable pricing, a suitable distributor, our own production resources and a careful market survey. We went over all these topics at LADEC’s workshop on international expansion, which was extremely useful for us,” Olli Hämäläinen praises the training. 

Keeping production and certificates up-to-date

At the moment, Villähteen Leipä is analysing if its production can meet the volumes required by the international market. 

-  If we are able to get international chains as customers, our volumes will multiply. The quality certifications need to be up to speed, down to the last detail. Right now, we have the FSSC22000 certificate. It allows us to enter the international market, but it may exclude specific chain customers that require BRC or IFS certificates. However, the processes to achieve them are already underway, Hämäläinen adds. 

He says he had excellent and fruitful discussions about international expansion with LADEC’s Business Development Manager Pentti Meriläinen and the consultant who led the workshop, Juha Lahtinen. At the event on international expansion, connected to the Suomen paras yrityspalvelu project, Hämäläinen learned what needs to be planned before the next concrete steps in internationalisation. 

-  At the workshop, we had great discussions on the extent of the product range and the importance of right pricing. It also emphasised the importance of a careful market survey and the commitment of the whole company and its staff, if you want to move forward in the international expansion.

Hämäläinen says that the workshop was such a great source of information that he recommends all companies to attend even if they are not yet planning to expand to the international market. 

-  Juha Lahtinen, the instructor at the workshop, became a contact with whom we will be able to discuss many topics on our road to the international market. It’s great to have someone to call and ask for help when we need it.

Best business services in Finland

The project Suomen paras yrityspalvelu (‘Best Business Development Service in Finland’) launched by LADEC in 2020 aimed to lead a greater number of companies in the Lahti region on a path to growth and find assistance and support services that promote growth.

Villähteen Leipä attended the ‘First Steps towards the International Market’ event series, organised as a part of the project. The series helped companies walk the entire growth path from recognising international requirements to making a market entry plan. 

The event series consisted of four half-day workshops: the prerequisites of international expansion, funding for international expansion, the strategy and path for international expansion, and the first and next steps. The instructor at the workshops was Juha Lahtinen from Export Maker Oy.

Pentti Meriläinen, LADEC’s Business Development Manager, believes the event series is very useful for companies on the verge of international expansion that have the enthusiasm and will to take the step towards growth. 

-  International expansion requires a company to be committed and make the conscious decision to take the first steps. It also takes time, planning and systematic work. LADEC business services and counsellors are available to all companies in the Lahti region in all matters related to growth and international expansion, Meriläinen points out. 

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Text: Taru Schroderus
Photos: Anri Vuori, LADEC
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In the main photo at the top: Representative of the third owner generation of Villähteen Leipä, Key Account Manager Olli Hämäläinen.

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