Baltic, Foodstuff, Markets and Companies

"It came as a surprise to us today. An internal investigation is being conducted and for its duration the management has been deprived of the right to make decisions, and one's looking at whether we comply with group policies. I don't know anything more,"  told Soorm.

"We continue working and tomorrow will bring more news," he said.

Soorm said members of the Baltic management team have had meetings with representatives of the parent corporation but they were not told the reasons why the internal investigation was taking place.

"The new CEO took over on Nov. 1 and this is all that is known," Soorm said.

Jari Latvanen, appointed CEO of HKScan Corporation at the end of May, assumed the office at the beginning of November.

Since 2015, Latvanen worked as member of the management board and head of Consumer Board at Stora Enso. Prior to it he worked as manager of Findus Nordic and in managerial positions at Nestle. He worked in the position of sales and commercial director at HK Ruokatalo, the present HKScan Finland, from 1995–2000.

Among his first steps in the new job, Latvanen replaced Samuli Eskola with Jyrki Karlsson as executive vice president for HKScan's consumer business in Finland and the Baltics. Karlsson will report to the CEO, Jari Latvanen, and his main task will be to improve the commercial performance and profitability of HKScan's Finnish and Baltic business and to further develop HKScan's product offering, a press released published on Nov. 2 said.

HKScan announced on Monday that it has started an internal investigation into the corporation's Baltic business aimed at ensuring that the principles of good corporate governance and HKScan's Code of Conduct have been followed.

Some members of the management team of HKScan Baltics have been relieved of their duties for the duration of the investigation. The current chief marketing officer (CMO) of HKScan Corporation, Anne Mere, will assume the position of interim general manager of HKScan's Baltic business in addition to her existing duties, HKScan said in a press release.

Mere reports to Jari Latvanen, CEO of HKScan Corporation.

The investigation is estimated to take a few weeks.

"It is important for us at HKScan that we always follow the principles of good governance and our Code of Conduct. We have initiated the investigation to ensure this," Latvanen said in the press release. "The continuity of our operations is guaranteed by an experienced team and the investigation will not affect our business," the CEO added.

HKScan Estonia, the Baltic subsidiary of HKScan, finished 2015 with a profit of 1.1 mln euros on revenue of 151.7 mln euros. The board members of HKScan Estonia are Teet Soorm, Meelis Pihlak and Margus Venelaine.

The best known trade marks of HKScan in the Baltics are Rakvere, Tallegg, Rigas Miesnieks, Jelgava, and Klaipedos Maistas.