Food and Beverage Business
Finance

Cloetta sells off Nutisal roasted nuts brand

Cloetta sells off Nutisal roasted nuts brand Cloetta Food and Beverage Business Cloetta

Cloetta, a Swedish snacks manufacturer, has agreed to sell its Nutisal roasted nuts label to The Monchy Food Company in the Netherlands. The deal is worth around €5 to €6 million ($5.4m – €6.5m). This move aligns with Cloetta’s strategy to focus on its core confectionery brands and achieve a long-term goal of over 14% adjusted EBIT margin. Nutisal accounts for half of Cloetta’s nuts segment and 2% of its total net sales. The company will continue to produce nuts as part of its pick-and-mix line.

Cloetta’s decision to divest Nutisal comes amidst efforts to streamline its operations and improve profitability. The company anticipates booking a non-cash impairment of €7-8 million in the second quarter following the transaction. Additionally, Cloetta expects the sale to generate positive cash flow of €6-7 million.

The acquisition of Nutisal by Cloetta in 2013 marked a significant expansion of its product portfolio. However, in 2020, the manufacturing of Nutisal was outsourced to a third party to enhance competitiveness. Subsequently, the brand’s Helsingborg plant was closed in 2021. Cloetta has been facing challenges related to high cocoa prices, which account for 8% of its total raw material costs. In response to record-high cocoa and sugar costs, the company announced price increases for its confectionery and chocolates earlier this year.

In the first quarter of 2024, Cloetta reported net sales of Skr2.1 billion ($199.3 million), a 6.1% year-on-year increase. However, adjusted operating profit decreased by 4% to Skr192 million. The company’s portfolio includes popular brands such as The Jelly Bean Factory, Läkerol pastilles, Plopp chocolate toffee bites, and King mints. Cloetta operates in key markets like Sweden, Finland, the Netherlands, the UK, Germany, and Denmark, with additional sales to Switzerland and other regions through third-party distributors.

With seven production sites in Sweden, the Netherlands, Belgium, and Slovakia, Cloetta produced approximately 101,300 tonnes of chocolates, confectionery, pastilles, nuts, and chewing gum in 2023. This divestment of Nutisal underscores Cloetta’s commitment to optimizing its portfolio and driving sustainable growth in the food and beverage industry.

Related posts

Lifeway Foods CEO urged to step down by family members

FAB Team

Grounded Capital invests in Straus Family Creamery

FAB Team

Listeria in plant-based milk linked to two deaths in Canada

FAB Team