Raisio’s CEO wins US legal case against Oat Solutions, posts positive results
Rihko was charged with fraud in a $25m civil complaint filed by the US food manufacturer.
Owners of Oat Solutions, Helene Lumme and Mika Manninen claimed that Rihko was personally involved in the partnering agreement with them to launch and market a gluten and GMO-free oatmeal brand called Simpli in the US.
Despite what they called an “instant success” performance, the Oat Solution partners alleged Rihko abruptly terminated the relationship just 18 months after the launch.
However, earlier this week, the District Court, Central District of California, accepted Raisio’s application to dismiss the civil action.
This was the third proceeding won by the company against Oat Solutions since 2014.
Oat Solutions was not available for comment at the time of going to press.
Best Q3 results ever
Public Finnish food corporation Raisio released positive Q3 2016 results today. The group’s net sales totalled €102.8m ($111.98m).
Rihko maintain the group’s comparable EBIT of €14m ($15.28m) was Raisio’s third best quarterly results ever, attributing the growth mainly on private consumption supported by low interest rates.
Raisio produces a range of snacks, breakfast and baking product brands, including Elovena, Sunnuntai, Nordic, Fox’s, Poppets, Juicee Gummee, as well as milk beverages like Benecol, which the company claims to assist in lowering cholesterol.
The groups’ key market areas are Finland, the UK, Russia, Poland and the Czech Republic, while Benecol is sold in 30 countries worldwide.
Rihko said the demand for healthy and ecological snacks is showing strong growth.
Rihko reported sales of Benecol continued to increase in the UK, gaining market share from its competitors, and Elovena sales also increased by over 10%.
The Brexit affect
The company said the Eurozone economy is expected to grow moderately in 2016, but will slow down in 2017.
It anticipates Brexit will affect its local business operations, while Rihko contended tha, the UK’s economy is expected to fall into recession according to many assessments, .
However, he said Raisio expects its comparable EBIT to improve in 2016, compared to 2015.
