Swedish confectionery group Cloetta has announced that it is to close its nut processing facility in Helsingborg and outsource production to a third-party supplier.
The facility in Helsingborg manufactures brands such as Nutisal and Parrots and is the company’s sole nut processing unit.
The move will help the company to save up to SEK10 million on an annual basis along with a one-off restructuring cost of SEK15 million.
'Highly Competitive Market'
President and CEO of Cloetta, Henri de Sauvage-Nolting, stated, “A decision to close a factory is not taken lightheartedly and we will support our employees in their transition to new jobs.
"However, we are active in a highly competitive market and must therefore constantly review our ability to drive improvements across our business.”
Nuts are an important growth segment for Cloetta’s as they offer an alternative snacking option in the company’s product portfolio.
The nuts market is expected to grow proportionally faster than confectionery in the coming ten years, the company added.
In 2019, the nuts segment accounted for 4% of the company’s total sales.
'A Rigorous Process'
Commenting on the decision to outsource the business, de Sauvage-Nolting, said, “The third-party supplier was selected after a rigorous process evaluating a wide range of suppliers and their ability to maintain a clear focus on safety, quality and delivery.
“Through outsourcing, we will improve our competitiveness and offering within the nuts segment as well as get access to new technologies. Furthermore, the initiative enables us to streamline our own production to focus on categories in which we possess strong internal knowledge and expertise.”
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.