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Cloetta to exit Candyking business in Poland

FBR Staff Writer Published 29 January 2018

Swedish confectionery manufacturer Cloetta will close its Candyking business in Poland after deeming it to be unprofitable.

Cloetta president and CEO Henri de Sauvage said that the company decided to exit the loss making Candyking operation in the country as it did not see a profitable business going forward.

In February 2017, Cloetta had made a deal to acquire Candyking for an initial purchase price of SEK325m ($41.24m). Candyking is a concept supplier of pick and mix candy in the Nordic countries and the UK.

Currently, the Swedish confectioner is in the process of fully integrating Candyking in its group.

The announcement of the closure of the Polish operation of Candyking was made during the release of Cloetta’s Q4 2017 results.

Cloetta said that its sales for the quarter had surged 20.2%, of which the acquisition of Candyking made up 20.8%.

It revealed that Candyking’s sales grew 14.0% in the quarter, owing to a very positive development on all markets with the exception of Poland. Cloetta added that the increase in Candyking’s sales was especially strong in Finland and also in Norway ahead of the increased sugar tax.

Sauvage said: “Negotiations with some retailers for renewals of pick & mix contracts have now resulted in us being able to renew all existing large Candyking contracts, except for one contract that still is under negotiation.

“In addition, we have been able to gain several smaller contracts. This demonstrates the strength of the Candyking concept.”

Cloetta made another major deal in 2017, when it sold its Italian operations under the name Cloetta Italy to Katjes International for a sum of SEK450m ($57.1m). The Swedish confectioner said that the sale was to focus more on its business in North-Western Europe which includes the recently added Candyking business.

Image: Cloetta president and CEO Henri de Sauvage. Photo: courtesy of Cloetta AB (publ).