UPDATE: SWEDEN: Cloetta to expand Jelly Bean Factory in Europe
Cloetta plans to grow The Jelly Bean Factory sales in Europe
Cloetta plans to drive sales of The Jelly Bean Factory by feeding products into six European markets, the Sweden-based confectioner said today (28 May) after its acquisition of the brand's owner Aran Candy.
In a deal worth SEK140m (US$21.1m). Cloetta will buy 75% of Aran Candy. The agreement will see it take full control of the business in 2016.
The UK is Aran's largest market. The group also has a presence in countries including Ireland, Germany, US, Canada and the Middle East.
A spokesperson for Cloetta told just-food the company plans to beef up The Jelly Bean Factory's international presence - a move it believes will also unlock synergies for the group. "Over time there are also revenue synergies since we will be able to roll out the products via our own sales organisation in our six core markets - Sweden, Italy, Holland, Norway, Finland and Denmark."
The spokesperson added Cloetta's business in the UK will be "significantly strengthened" but declined to break out any figures. In the UK, Chewits is Cloetta's largest brand and the company recently acquired free-from firm Goody Good Stuff, which also serves the market.
Cloetta expects the acquisition to contribute to its earnings growth "over time" but did not provide further detail on the impact the deal would have on earnings in the current fiscal year. "The Jelly Bean Factory has attractive margins and it over time will contribute to our 14% EBIT-target," the spokesperson revealed.
The company defines its stated strategic goals in terms of margin expansion, volume growth, cost efficiencies and employee development. Margin expansion and volume growth will see the company seek gro...
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