Consolidation vs acquisition
The latest report from Cloetta has highlighted a widespread trend – unusually large fluctuations in sales, partly due to aggressive competition in the grocery retail trade. For the Swedish company, that has meant an overall decrease in volume during 2011 and forced price increases that will take place this autumn. The confectioner will also consolidate its product portfolio and will sell the brands that are not part of the confectionery category. CEO Curt Petri explains that the focus will be on developing the segments where Cloetta is the market-leader, such as countlines including Kexchoklad, chocolate bags like Polly and seasonal products such as Juleskum. There seems to be more confidence in the UK market, though, with Krispy Kreme expanding after a management buyout and Tangerine acquiring the Wham and Highland Toffee brands. It will be interesting to see what they do with the brands to capitalise on the recent media attention.
