Production
Valora is one of the world’s leading producers of pretzels and benefits from a highly integrated value chain. In 2021, Valora produced around 730 million baked goods with its 16 production lines in Germany, the US and Switzerland.
The company primarily supplies a growing number of food service customers as well as the retail and wholesale markets – in addition to its own Ditsch, BackWerk and Back-Factory sales outlets in Germany, Brezelkönig branches in Switzerland and other Valora formats. Ditsch products are also exported to more than 30 countries.
Total B2B sales in the pretzel business recovered completely in 2021. Valora grew significantly in the US with Ditsch – made possible by the second production line that became operational in 2020. The US in particular offers further growth opportunities.
Existing products from the Oranienbaum production site in Germany were placed and marketed in those channels (bakeries, service stations and general international customers) that were significantly less affected by COVID-19 restrictions than food service channels at transport hubs. Relations with existing customers in the B2B markets in Germany, Switzerland and Austria in particular were strengthened, leading to an increase in market share in the DACH region in addition to the US.
During the crisis, the two new production lines in Oranienbaum enabled the automated filling of pre-baked pretzels, which can also be packaged individually at the customer’s request. Oranienbaum was also able to automate the looping of lye braids.
730 million pieces of baked products for 30 countries
The two new production lines also enable the creation of innovative products such as organic pretzels, vegan pizzas and other bakery snacks. They ensured successful additional business. In 2021, the trade magazine tk-Report minus 18 even named the pretzels filled with herb and garlic butter as the most innovative product launch in the bread and baked goods category.
Like the market environment as a whole, the B2B business currently faces inflation. Prices for raw materials such as flour, but also for packaging, energy, logistics and personnel costs are particularly impacted. The management has taken comprehensive measures in the areas of production efficiency, procurement and pricing to successfully manage the situation.