Cloetta AB Decides to Close the Production in Helsingborg and to Outsource the Manufacturing to a Third-Party
August 19, 2020 at 02:45 am EDT
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To improve the competitiveness and offering within the nuts segment, Cloetta AB has decided to close the production in Helsingborg and to outsource the manufacturing to a third-party. The initiative is expected to generate savings of up to SEK 10 million on an annual basis and incur a total of approximately SEK 15 million in one-off restructuring costs. The factory in Helsingborg is Cloetta’s sole processor of nuts, with brands such as Nutisal and Parrots. Nuts play an important role in Cloetta’s portfolio as they offer alternative snacking and are an important growth segment, with the nuts market expected to grow proportionally faster than confectionery in the coming ten years. The factory in Helsingborg is planned to be closed in early 2021 and handed back to the owner. In total, 25 jobs will be affected, and negotiations have been initiated with the local unions in order to support the employees. The initiative is expected to generate savings of up to SEK 10 million on an annual basis and incur a total of approximately SEK 15 million in one-off restructuring costs, whereof approximately half is of non-cash nature. The nuts segment accounted for 4% of total sales in 2019.
Cloetta AB is a Sweden-based company active in the chocolate and sugar confectionery market. The primary ingredient for its products is cocoa. The Company uses cocoa mass that is produced from seeds found in the fruit of cocoa trees grown along the equator. It produce and sells products within three main categories, namely Chocolate, which comprises chocolate wafers, plates, pralines and dragees; Sugar confectionery, which comprises foam, wine gums, liquorice, toffees, hard boiled candy, chewy candy, toffee/fudge/caramel and lollypops, and Refreshment, which comprises pastilles and chewing gum. The Company owns such brands, as Lakerol, Cloetta, Jenkki, Kexchoklad, Malaco, Sportlife, Saila, Red Band and Sperlari. The Company has 12 production units in six countries. In January 2014, it acquired Alrifai Nutisal AB. In May 2014, it acquired 75% of shares of Aran Candy Ltd and the brand The Jelly Bean Factory, Irish company producing and selling gourmet Jelly Beans.