Cloetta Fazer invests in new chocolate lines
investing SEK 270m (€29m) in two new chocolate manufacturing lines,
as part of a drive to boost its market share in the Nordic region.
Chief executive officer Jerper Aberg said new lines will be built in both countries where the company has production facilities - one in Sweden and the other in Finland. Unlike many confectionery companies, which often move factories out to emerging markets in Eastern Europe and Asia, Cloetta Fazer has decided to concentrate on production in its key market countries. "New product launches, delivery reliability and high quality are key success factors, and this investment in our own Nordic factories will give us the necessary conditions to achieve all of these," Aberg said. The new lines will process popular Cloetta chocolate brands, such as Karl Fazer, Kexchlad and Dumle. Aberg added: "Because chocolate is currently the most expansive segment of market, we will continue to focus on development of our prioritised brands and aim to offer interesting new chocolate products to the consumers." Cloetta Fazer is currently one of the largest confectioners in the Nordic region, with a 22 per cent market share. The company has 1,500 employees, with 600 in Finland and 370 in Sweden, and produces throat lozenges, toffee and lollipops as well as chocolate. For the third quarter ending September 2007, the company said that sales rose 8 per cent to SEK 745m, despite high commodity and manufacturing costs pulling operating profits down. The company's overall strategy is to increase its presence in the Nordic region, and last month it acquired Swedish pastilles-maker Karamellpojkarna, the third biggest supplier of throat pastilles in Sweden.
