Orkla Food Ingredients has announced that it is to buy cake manufacturer Frödinge from Orkla Foods Sverige through its subsidiary, Odense Marcipan A/S.
The transaction, expected to close on 1 October 2020, will include the acquisition of one factory with 75 employees in Vimmerby in Småland province, Sweden.
The move will allow the company to build a solid platform for the future development of Frödinge and help Orkla Foods Sverige to focus on strategic growth areas.
'A Fantastic Addition'
Johan Clarin, CEO of Orkla Food Ingredients, explained, “Frödinge is a fantastic addition to Foods Ingredients, and together with our other cake and bakery ingredient businesses, we are creating a solid platform for growth, cost-effective production and product development.”
Frödinge is famous for its traditional cheesecakes, mud cakes and other classic and novel dessert pies and cakes.
In Odense Marcipan Group, Frödinge will be a sister company of Bæchs Conditori, a major player in the Danish cake market, the company said.
Established in 1929, Frödinge became part of Orkla through the acquisition of Rieber & Søn in 2013.
In 2019, the cake manufacturer generated sales amounting to SEK 221 million (€21.37 million).
Odense Marcipan A/S was founded in 1909 and is best known for its select marzipan as well as fondant, nougat, chocolate and cake decorations.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.