Cloetta Fazer signs new Nordic deal
agreement with Brynild Salg for the continued sale of Cloetta
Fazer's products in Norway and the Nordic region as a whole.
At the same time, both parties have agreed that the principal owner Brynildsens Fabrikker will take over Cloetta Fazer's holding, corresponding to 60 per cent of the share capital and 42.9 per cent of the votes in Brynild Salg, the company said.
"The agreement to sell the shares reflects the fact that both parties are eager to focus and highlight their customer and supplier roles,'' commented CEO Karsten Slotte. "We believe this will give us even more effective representation in Norway. The sales collaboration with Brynildsens has continued unbroken for close to 20 years. After the sale, Brynildsens Fabrikker will be sole owner of Brynild Salg .''
Brynild Salg is currently Norway's third largest confectionery company with a market share of approximately 15 per cent. Cloetta Fazer's products account for one third of Brynild Salg's total sales, corresponding to around 3,000 tonnes. Cloetta Fazer's top-selling brands in Norway are Dumle, Center and Bridgeblandning.
"The proceeds from the sale of the shares will have a negligible effect on Cloetta Fazer's profit and financial position,'' concluded Karsten Slotte.
Brynild Salg is the Brynild group's main company for sales and marketing of chocolate and confectionery. In 2003 the company had net sales of around SEK 520 million (€56.8m) and delivered a total of 10,000 tonnes of chocolate and confectionery. The number of employees is 75.
The Cloetta Fazer Group is the Nordic region's largest confectionery company, with a market share of 22 per cent. The company has production facilities in Sweden, Finland and Poland. Cloetta Fazer's strength lies in its many popular brands, such as Fazer Bla, Kexchoklad, Dumle, Geisha, Polly and Center. The average number of employees is 2,000 and annual sales in 2002 amounted to SEK 3 billion.
