Cerealia Foods and Bread has been formed by merging the company's fresh bread division with the Cerealia Foods unit, which sells a variety of consumer products including breakfast cereals, flour and pasta.
It is hoped the move will increase Cerealia's market share in home country Sweden, especially in the south where the company is weaker, and also improve its position in Denmark and Poland.
The manager for the new business sector is current managing director of Cerealia Foods, Håkan Lundstedt. "I really see great opportunities in the co-ordination of this new business sector, not only in Sweden," he said.
"My task will be to combine the competencies in foods regarding active sales co-operation with the retail chains, strategic marketing and our established network within media, with the competencies in fresh bread, within sales, marketing, production and distribution," he added.
Lundstedt's opposite number at Cerealia Fresh Bread, Per Kullberg, has left the company for another business.
Cerealia's chief executive officer, Håkan Ahlqvist, said: "This new sector will give us an overall more concentrated retail system. At meetings we often see the same people on the other side of the table no matter what we are talking about."
Ahlqvist refused to speculate on any job losses resulting from the merger.
Cerealia is a major developer and producer of cereal-based foods such as flour, breakfast cereals, pasta and bread. The company has around 60 offices across Europe and Japan, employing 5,700 people and catering for a world-wide market.