Candyking is reducing its presence in Central Europe

Candyking is reducing its presence in Central Europe

Confectionery company Candyking has withdrawn from some central European markets citing they are "unprofitable".

The Sweden-based firm said it has made "a strategic decision" to close its businesses in Slovakia, the Czech Republic and Hungary and "increase its efforts" in Poland.

"Over the last few years, the European food retail market has been characterised by price pressure and challenging competition. For this reason it is a natural step that we focus our resources where we see the greatest growth potential - in this case Poland", said David von Laskowski, president and CEO of Candyking.

The comoany's export business will continue to handle individual customers present in the Czech Republic, Slovakia, Hungary, Bulgaria and Romania.

The businesses in the affected countries are planned to be completely shut down by 30 April.

Earlier this year, Candyking announced it would continue to operate privately after deciding to abandon a planned IPO. Von Laskowski announced his resignation at the same time but plans to stay on until a replacement is found.

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As a step in the strengthening of, and focus on, Candyking’s core business, the company’s Board and management have made a strategic decision to increase its efforts in Poland and at the same time shut down its businesses in Slovakia, the Czech Republic and Hungary.

“Over the last few years, the European food retail market has been characterized by price pressure and challenging competition. For this reason it is a natural step that we focus our resources where we see the greatest growth potential – in this case Poland”, says David von Laskowski, President and CEO of Candyking.

Candyking’s business in Poland will continue to be developed, due to the positive sentiment in the market. Candyking’s export business will continue to handle some individual customers, which are present in the Czech Republic, Slovakia, Hungary, Bulgaria and Romania. The businesses in the affected countries are planned to be completely shut down by April 30th, 2014.

Original source: Candyking