The Senate authorised Victor Hartwall, PhD, to produce and bottle hot and cold mineral waters on 2 February 1836. Hartwall then set up the first mineral water plant in the Nordic countries. Operations started in the Sederholm House in Senaatintori Square, Helsinki.
Victor Hartwall also played a role in founding the Kaivohuone villa in Helsinki and the park in which it is located, Kaivopuisto. On 5 June 1838, the health spa Wesilä was opened in Kaivohuone. Guests came to the spa from as far off as St. Petersburg and Stockholm. They were offered therapeutic waters produced by Hartwall.
Mineral water from wagons and kiosks
Victor’s son August Ludvig Hartwall carried on the business. He started up street vending of water in Helsinki. Healthy effervescent mineral waters were first sold from wagons, and later from water kiosks. In 1865 and 1866, he erected ornate kiosks in what are now Kauppatori Square, Esplanadi Boulevard and Kaivopuisto Park. Mineral water, earlier enjoyed mainly for therapeutic purposes, now became a social beverage. Soft drinks were created by mixing mineral water with sugar-sweetened juice.
The superior quality of Hartwall’s water was recognised abroad. In 1866, at the first Nordic Industrial Exhibition in Stockholm, Hartwall was awarded an honorary diploma for its “clean tasting and very effervescent water”.
Sweet soft drinks enter the scene
From the late 1800s to World War II, the company industrialised its operations. To cater to the rising demand for mineral waters and soft drinks, new production capacity was built on Kalevankatu Street in Helsinki, and later on Malmikatu Street.
Sweet soft drinks made their breakthrough during the Great War. From 1913 to 1916, soft drink production surged from 750,000 to 1,850,000 bottles. The first major competitors emerged on the scene at that time – and by 1930, there were 55 players in the business. Hartwall thrived in spite of the recession and heavy competition, thanks largely to its high quality and good service. In 1938, Hartwall was already a major corporation, breaking the milestone of 10 million bottles per year.
After the lean years of World War II, the company once again started developing new beverages. The One and Only Hartwall Jaffa soft drink was launched in 1949. Hartwall Jaffa soon blossomed into a product family with many flavours. Jaffa is still the market leader in its fruit-flavoured segment and the soft drink Finns most appreciate.
Coca-Cola arrived in Finland with the 1952 Helsinki Olympics. Hartwall made an agreement to produce and distribute the beverage in the Helsinki region in 1956. The needs of the market meant that it was once again time to relocate to more modern production facilities. Operations at the Konala plant in Helsinki commenced on 15 May 1962.
Hartwall enters the brewing business
Hartwall entered the brewing business in 1966 by acquiring the Lappeenranta-Lauritsala brewery. Its Karjala beer conquered the market with the slogan “Karjalasta kajahtaa” – “a thundering noise from Karelia”, a line from the patriotic Song of the Karelians. The bottle also featured the Karelian coat of arms with its sword and sabre. Much of Karelia had been lost to the Soviet Union and the choice of slogan and coat of arms was seen as a gesture of defiance. Kovalef, the Soviet Ambassador to Finland, voiced his disapproval. This helped sales go through the roof.
The company had entered the brewing business at the right time – in 1969 the sale of medium-strength beer, previously only available in state-run Alko stores, was permitted in grocery stores.
Hartwall acquired more breweries. In December 1968, Hartwall bought the Vaasa-based Bock, the leading Ostrobothnian brewery, and in spring 1971 the venerable Auran Panimo brewery in Kaarina. Co-operation with the Lapin Kulta brewery started in 1965, with Hartwall distributing Lapin Kulta in its own market areas, and Lapin Kulta distributing Hartwall products in Lapland. Hartwall acquired the capital stock in Lapin Kulta in its entirety in March 1980. The Lahti-based Mallasjuoma was acquired in 1988. Thanks to this single transaction, Hartwall became so strong that it could start thinking about expanding abroad.
Leading the way in going international
In 1991, Hartwall and the Swedish group Pripps Bryggeriet established Baltic Beverages Holding. This joint venture’s mission was to acquire majority holdings in leading local breweries in the Baltic countries, Russia and other countries of the former Soviet Union, and then invest technology and expertise in them and bolster their sales, marketing and distribution systems.
BBH acquired its first brewery, Saku in Estonia, in 1991. The following year, BBH bought a majority stake in Aldaris, Latvia’s leading brewery, and in 1993 a majority in Baltika of Russia. Until the beginning of the 2000s, the company acquired breweries almost every year in Russia, the Baltic countries and Ukraine. In the space of a decade, it became the world’s fifteenth largest brewer in terms of volume, 2,383 million litres. BBH rapidly claimed market leadership in Russia and the Baltic countries, while in Ukraine it vied for second place.
In 1994, Hartwall’s Board of Directors decided to apply for the listing of its Series A shares on the Helsinki Stock Exchange. The share had been quoted since 1989 on the OTC List of the Finnish Association of Securities Dealers. Growing interest by foreign investors was one of the major reasons why the company decided to change its place of quotation. Hartwall’s Series A shares were first quoted on the stock exchange on 1 July 1994.
In 1999, Hartwall made a co-operation agreement with Pepsi. Thanks to this partnership, Pepsi’s market share has grown considerably higher in Finland than in many other European countries.
Hartwall took its next great step in 2002 when it merged with the UK-based Scottish & Newcastle and delisted itself from the Helsinki Stock Exchange. After Heineken and Carlsberg acquired Scottish & Newcastle, S&N’s operations in the UK, Portugal, Belgium and Finland are being held by Heineken from 29 April 2008. Therefore, Hartwall is now part of the Heineken N.V. that is Europe’s largest brewer and the world’s third largest by volume.
Innovative leader in the beverage industry
After many years of construction, Hartwall completed Hartwall Lahti in 2003. This state-of-the-art production plant and logistics facility was the largest-ever investment made by the Finnish food and drink industry. Thanks to Hartwall Lahti, the company is well-poised to tackle the challenges that the beverage industry will face in the future, and has ensured its operational viability and competitiveness.
Today, Hartwall is the leader in innovation in the Finnish beverage industry. The company has a strong mix of brands, with a product portfolio that includes beers, ciders, long drinks, bottled waters, soft drinks and a growing variety of other drinks. Hartwall continuously develops new products to cater to the changing needs of consumers – for instance, Hartwall Novelle Plus product family that includes added minerals and vitamins that are important to your daily wellbeing.
Hartwall's best-known brands are Hartwall Jaffa soft drinks, Hartwall Novelle mineral waters, Upcider ciders, Hartwall Original Long Drink as well as Lapin Kulta, Karjala, Foster's and Heineken beers. Through the subsidiary Hartwa-Trade, the portfolio includes hundreds of wines and other alcoholic drinks.