Nordic partners split after 8 years
Güncelleme Tarihi:
by Kunal Majumder
Oluşturulma Tarihi: Ocak 07, 2009 00:00
HELSINKI - The Nordic region’s largest chocolate and sugar confectionery player Cloetta Fazer has split. The company was formed after the merging of Cloetta of Sweden and Fazer Konfektyr of Finland in 2000. With a market share of 22 percent, it became the Nordic region’s largest chocolate and sugar Confectionery Company, as its operations spread from Stockholm to Moscow.
Its twelve brands have dominated and still dominate the taste buds of Scandinavia - Karl Fazer, Dumle and Geisha are the most popular ones.
Eight years later, they decided to part ways. "The owners had a different view of the company’s future growth strategy. The business has been growing during the last eight years, and the result have been good, so the reason to split does not come from business issues," said Tom Lindblad, managing director of Cloetta Fazer.
Through the split, announced first in June 2008, two separate companies - Cloetta and Fazer Confectionery - would be created. The new Cloetta intends to apply for a listing on the OMX Nordic Exchange in Stockholm, while Fazer Confectionery will be consolidated in the privately held Fazer Group.
Market dynamics
The total Nordic confectionery market amounts to around 280,000 tones annually, according to data compiled by Cloetta Fazer. Sweden is the region’s largest single market, accounting for around a third of total consumption. Next largest is Finland, followed by Denmark and Norway. The largest export markets outside the Nordic region are the Baltic countries and Russia.
The Nordic countries account for roughly 2 percent of total global confectionery consumption.
Speaking on the company’s expansion strategy, Lindblad said, "We have an organic growth strategy for all exciting market, and we are also active in finding new markets. We are working a lot with sustainability in the Fazer group. We are also developing the purchasing process of cocoa, and that work we are doing together with our cocoa suppliers. Traceability is another very important issue that we are working with at the moment."
Eight years later, they decided to part ways. "The owners had a different view of the company’s future growth strategy. The business has been growing during the last eight years, and the result have been good, so the reason to split does not come from business issues," said Tom Lindblad, managing director of Cloetta Fazer.
Through the split, announced first in June 2008, two separate companies - Cloetta and Fazer Confectionery - would be created. The new Cloetta intends to apply for a listing on the OMX Nordic Exchange in Stockholm, while Fazer Confectionery will be consolidated in the privately held Fazer Group.
Market dynamics
The total Nordic confectionery market amounts to around 280,000 tones annually, according to data compiled by Cloetta Fazer. Sweden is the region’s largest single market, accounting for around a third of total consumption. Next largest is Finland, followed by Denmark and Norway. The largest export markets outside the Nordic region are the Baltic countries and Russia.
The Nordic countries account for roughly 2 percent of total global confectionery consumption.
Speaking on the company’s expansion strategy, Lindblad said, "We have an organic growth strategy for all exciting market, and we are also active in finding new markets. We are working a lot with sustainability in the Fazer group. We are also developing the purchasing process of cocoa, and that work we are doing together with our cocoa suppliers. Traceability is another very important issue that we are working with at the moment."