Cheap labour pulls Cadbury eastwards, airport franchise boosts profits for a US chocolate company, and Cloetta is tempted by Swedish pastilles.
Cadbury moves production to Eastern Europe Cadbury Trebor Bassett today announced it will switch UK chocolate manufacturing to Poland, in an attempt to reduce costs and remain competitive. "Cadbury is a great British company which has become an international success," said managing director Trevor Bond. "In order to continue to compete in the extremely competitive confectionery industry in the future we need to make the right decisions today."
The Keynsham plant will close over the 2009-2010 period, meaning that about 500 workers will lose their jobs, while and extra 200 individuals will be make redundant at the Bournville site. "Chocolate production from Keynsham would move to both our Bournville factory and to our sister factory in Poland," Bond explained.
"It is also proposed that some chocolate assortment production would move from Bournville to Poland in 2008," he added. Cadbury plants in Chirk and Leominster will be unaffected by the cost-cutting operations.
Road is smooth for Rocky's second quarter results US-based Rocky Mountain Chocolate Factory this week reported an 11 per cent increase in sales, attributed in part to an airport franchise agreement.
For the second quarter ending 31 August 2007, the company also experienced a 28 per cent increase in net sales, up to $1.33m (€0.9m) from $1.04m (€0.7m) for the same period in 2006. "A highlight of our second quarter was the signing of an airport franchise development agreement with The Grove, a privately owned retailer of natural snacks and other branded products," said Chief Executive Officer Brian Merryman.
The success of the airport franchise helped prevent a dip in profits caused by lower franchise fees, Merryman said. The Colorado based Rocky Mountain Chocolate Factory is an international franchiser of gourmet chocolate and confectionery stores, as well as a manufacturer of premium chocolates and other confectionery products. It operates 319 stores in the US, Canada and United Arab Emirates.
Swedish pastilles tempt Cloetta Nordic confectionery company Cloetta Fazer yesterday announced its acquisition of Swedish pastilles maker Karamellpojkarna, as it moves to diversify the product range. "In line with our strategy, we are seeking growth by diversifying into product areas where we currently have a weak position or none at all, such as tooth friendly products," said Chief Executive Officer Jesper Åberg.
"Karamellpojkarna's portfolio includes a number of robust brands and I am convinced that we can further develop and strengthen these," he added. Karamellpojkarna is currently the third largest supplier of throat pastilles in Sweden, as well as being the leader in the lollipop segment.
According to Åberg, Cloetta Fazer sales will increase six per cent in Sweden thanks to the acquisition, where throat pastilles are the third largest confectionery segment.
The company is also particularly excited about Karamellpojkarna's new confectionery products containing the sweetener xylitol, as this will "open up new opportunities in the market", the company said.