DEEP DIVE IN PYHÄNTÄ VOL 2
After a hectic LapWall visit, it was Feelia’s factory’s turn.
I had arranged a lunch meeting with CEO Riikka Wulff at 12 PM. The compactness of Pyhäntä is perhaps highlighted by the fact that even though I left the LapWall factory at 11:58 AM, I was only a couple of minutes late for this meeting.
For an investigator who values real dividends, such a food industry target is very pleasing.
For lunch, there was goat cheese, spinach, and tomato soup,
which worked quite well with Oikia oat crisps.
For dessert, Marjavasu redcurrant kissel.
Photography of the production facilities was prohibited at this site, so this report will not be a picture parade like the one from LapWall. The CEO admitted that such a prohibition might not be very necessary, but we decided to respect the rule. I did get to peek at the production facilities from the office window, from which they were clearly visible. At the same time, a maintenance person happened to be there who was able to talk about, among other things, the autoclave method, which was also clearly visible.
I had been pondering the functionality of this autoclave for different food types. I had thought it was best suited for soups and pasta dishes, but apparently, it is quite versatile. It would be good for the food to contain water, as it acts as an excellent heat transfer medium in the process. For this reason, for example, pizza reportedly doesn’t work and tasted like “pig’s ear” when tested.
Organizational Change in Focus
The lunch discussion focused quite a bit on the administrative organizational change, where the old holding company’s four-CEO model has been changed to a one-CEO model. At the same time, Marjavasu’s business has been integrated into Feelia’s business, both organizationally and physically by moving production from Kuopio to Pyhäntä. This apparently happened at the beginning of the year, and things have gradually started to roll.
I also brought up Pyhäntä’s location, especially regarding the workforce. Currently, the company is looking for a production director, for which they have reportedly received a good number of applications, so there doesn’t seem to be a problem in that regard. Additionally, they have an open vacancy for a commercial director.
Wulff is originally from Kuopio, but does not have the same ties to Pyhäntä as is common for many companies in the region. It was considered that in the midst of such a change, it might even be a good thing to come into the situation from the outside and perhaps be able to act more objectively. She has experience with similar changes and growth from her previous job, so she seems quite suitable for this role.
It sounded a bit like the organization had been somewhat left behind by growth, and now they need to pause for a moment to get it in order so that growth can continue. She believed that the administrative changes would be sorted out by Christmas.
Business
I didn’t ask much about Oikia, as it was discussed quite a bit in Inderes’ earnings interview. Generally, I inquired about raw material prices, and apparently, beef is currently causing problems. It’s seemingly unavailable in Finland and would need to be imported from the EU, which would then require its own permits. I understood that the company can navigate this with different products and by replacing beef with pork, chicken, or plant-based solutions.
Generally, Feelia’s potential, especially in the public sector, was discussed. They have already received orders from the sector, but mainly from private operators. Negotiations with public entities are long, and politics play a role. On the other hand, it was considered that it’s worth investing in this sales work, as a contract then brings continuous revenue for a long time.
Lobbying is also likely worthwhile. Just before me, Juha Hänninen, a National Coalition Party (Kokoomus) Member of Parliament, had visited the factory. What makes the situation amusing is that he had gone directly from Feelia to LapWall, meaning we crossed paths!
This report remained a bit short, as Wulff’s staff meeting began, and perhaps my own information about the company is also slightly incomplete.
However, real dividends were accumulated, and it’s pleasant to munch on them in the beautiful nature of the region.
Disclaimer for this as well: the text is my own interpretation, which may be incorrect due to my incompleteness (of information/understanding).
P.S. Finally, one could also say that a deep dive into two companies in one day is quite a cognitively demanding task. At least for me.