SWEDEN. Cloetta Fazer has acquired confectionery producer Karamellpojkarna AB, the third-largest supplier of throat pastilles in Sweden.
The acquisition is expected to help Cloetta Fazer increase its sales in Sweden by around +6%. The purchase price was not disclosed.
The deal supports Cloetta Fazer’s plans for development in its main markets. Over a three-year period Cloetta Fazer has set its overall growth target at +25%, of which +10% will be met organically and +15% through acquisitions.
“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. Karamellpojkarna’s portfolio includes a number of robust brands and I am convinced that we can further develop and strengthen these,” said Cloetta Fazer CEO Jesper Ã…berg.
Karamellpojkarna’s Extra Starka Original brand is Sweden’s top-selling product in the throat pastille segment. As the third-largest confectionery segment, throat pastilles account for 14% of the total market in Sweden.
The acquisition is expected to give Cloetta Fazer expertise in tooth-friendly products and a stronger position in a fast-expanding product segment in the Swedish market.
“The transaction will boost our total sales by approximately +2%. In view of the steadily rising demand for products of this type, we firmly believe there is scope to further accelerate our growth in the throat pastille segment,” said Ã…berg.
Karamellpojkarna, founded in 1952, is a family-owned company that manufactures, markets and sells brands such as Extra Starka, Fünf Kräuter, Hemkola and Kungen av Danmark. The company reported sales of around SEK70 million last year.
The company also makes fruit-flavoured lollipops and toffee products, with its Fruktklubbor and Fifty-Fifty products placing it in a leading position in the Swedish lollipop segment. In addition, it has extended the assortment by launching a range of tooth-friendly sugar-free pastilles containing xylitol this year.
“The knowledge of sugar-free products that Karamellpojkarna brings to Cloetta Fazer is a welcome addition and we expect this to open up new opportunities for us in the market,” said Ã…berg.
About Cloetta Fazer
The Cloetta Fazer Group is the Nordic region’s leading confectionery company, with a market share of around 22%. It has a market share of 40% in Finland and 24% in Sweden and is said to be number two in the Baltic region. The company has production facilities in Sweden and Finland. Cloetta Fazer’s portfolio consists of brands such as Karl Fazer, Kexchoklad, Dumle, Geisha, Polly and Center. There are 1,500 employees and annual sales amount to around SEK3 billion.
Visit www.cloettafazer.com
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