NORWAY. Cloetta Fazer has signed a new long-term distribution agreement with Brynild Salg for the continued sale of Cloetta Fazer’s products in Norway.
At the same time, both parties have agreed that the principal owner, Brynildsens Fabrikker, will take over Cloetta Fazer’s holding in the distribution operation, corresponding to 60% of the share capital and 42.9% of the votes in Brynild Salg.
“The agreement to sell the shares reflects the fact that both parties are eager to focus and highlight their customer and supplier roles”, commented Cloetta Fazer 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 Norway’s third-largest confectionery company with a market share of approximately 15%. 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”, said Slotte.
Background
About Brynild Salg
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 (US$72.5 million) and delivered a total of 10,000 tonnes of chocolate and confectionery. It has 75 employees.
About Cloetta Fazer
The Cloetta Fazer Group is the Nordic region’s largest confectionery company, with a market share of 22%. The company has production facilities in Sweden, Finland and Poland. Cloetta Fazer’s strength lies in its range of popular brands, such as Fazer BlÃ¥, Kexchoklad, Dumle, Geisha, Polly and Center. The average number of employees is 2,000 and annual sales in 2002 amounted to SEK 3 billion (US$418 billion).
