Taaleri Bioindustry backs Finnish Food Factory with €10 million investment

Taaleri Bioindustry has invested €10 million (US$10.8 million) in Finnish Food Factory, a dairy alternatives manufacturer based in Kouvola, Finland. The funding, drawn from Taaleri’s Bioindustry Fund I, will support the company’s expansion and strengthen its ability to serve both Nordic and international markets.

Finnish Food Factory specializes in producing plant-based dairy alternatives for global and regional brands, including Fazer. Since its founding, the company has built its business around reliable, high-quality production, enabling rapid growth. Turnover has risen more than tenfold in four years, from €1.2 million (US$1.3 million) in 2020 to €13.5 million (US$14.5 million) in 2024.

The new investment will be used to scale production capacity and meet rising demand for plant-based dairy, particularly oat-based products, which continue to gain popularity across Europe. The company has emphasized its commitment to efficient and innovative manufacturing as the foundation of its business.

Tuomas Kukkonen, chair of the board at Finnish Food Factory, said the partnership with Taaleri comes at a pivotal time. “Finnish raw materials – particularly oats – have become a staple in consumers’ diets. With many years of expertise in plant-based products, the cornerstone of our operations is efficient, innovative and reliable production. We are excited to welcome Taaleri Bioindustry as our growth partner.”

The investment reflects Taaleri Bioindustry’s wider focus on the bioeconomy and sustainable food systems. The firm’s Bioindustry Fund I, classified under Article 9 of the EU’s Sustainable Finance Disclosure Regulation, directs capital toward companies that support the transition to low-carbon production models.

Taaleri highlighted that the carbon footprint of oat milk is considerably lower than that of traditional cow’s milk, underscoring the environmental case for greater adoption of plant-based alternatives. By backing Finnish Food Factory, the fund is looking to accelerate this shift while enabling the company to expand its international footprint.

Marjatta Rytömaa, managing director at Taaleri Bioindustry, said the deal builds on Finnish Food Factory’s track record of growth and reliability. “We are pleased to begin our collaboration with Finnish Food Factory. With its experienced team, the company has achieved successful growth in both local and international markets while consistently delivering reliable production and value-add to its global customers.”

The investment marks the sixth deal made by Taaleri Bioindustry Fund I, which has so far secured €100 million (US$108 million) in commitments, with around half of that capital now deployed. The fund targets companies at the forefront of the bioeconomy, including those developing innovative materials, sustainable food production methods, and circular economy solutions.

For Finnish Food Factory, the partnership represents not just financial backing but also the opportunity to tap into Taaleri’s expertise in scaling sustainable businesses. The company is positioning itself to play a greater role in the global shift toward plant-based diets, where demand for dairy alternatives continues to expand across multiple categories.

With consumer interest in oat-based drinks, yogurts, and other dairy substitutes showing little sign of slowing, the investment is expected to help Finnish Food Factory consolidate its role as a reliable production partner for established brands. The company’s focus on sourcing Finnish raw materials also ties into broader trends favoring regional supply chains and transparency in sourcing.

Taaleri Bioindustry has framed the investment as part of its strategy to build a portfolio of companies that are both commercially competitive and environmentally sustainable. By channeling growth capital into businesses like Finnish Food Factory, the firm aims to demonstrate how plant-based alternatives can scale while contributing to climate goals.

As consumer habits shift and major food brands seek dependable partners for alternative dairy production, Finnish Food Factory’s blend of rapid growth and strong operational expertise has made it an attractive target for investment. The company is now set to further increase its capacity and market reach with Taaleri’s support.