In this paper changes that have occurred in the Finnish food industry are studied in terms of changes in the dominant logic of the industry. These changes in the dominant logic impact knowledge management processes. The drivers of the changes in the food industry are both technological and market-based. Biotechnology is turning a traditionally low-technology industry into a high-technology industry through the introduction of ‘functional foods’. Knowledge relevant in the traditional food industry is becoming dated and future business success will be dependent on a firm's ability to create and capitalize on new knowledge. © 2001 John Wiley & Sons, Ltd.