Chewing gum makes up approximately 10% of Finland's total confectionary market, and the corresponding share in Sweden is 6%. Among other things, the acquisition of Fennobon Oy will give Cloetta Fazer expertise in sugar-free products and a strong position in a fast-expanding product segment. "In line with our strategy, we are seeking growth by diversifying into product areas where we currently have a weak position or none at all. Until now, Cloetta Fazer has not had any products of its own in this segment. Consumers in Finland have shown a preference for sugar-free chewing gum for many years and this trend is also visible in other European countries. We see major potential to expand in this segment. Fennobon is an innovative player and we are very pleased with the knowledge and opportunities this company brings to us," says Cloetta Fazer's CEO Jesper Aberg. Fennobon has its factory in Karkkila, Finland, northwest of the capital city of Helsinki. The company was established in 1990 and has 42 employees. In 2006, Fennobon reported annual sales of approximately SEK 66 million (EUR 6 million). Of the total sales volume, around 40% is exported to countries including Japan, the U.S. and Germany.
"Delivery reliability, consumer knowledge and superior quality are key success factors for Cloetta Fazer. Today, we sell our products primarily in the Nordic and Baltic regions and see the advantages or manufacturing the products in our own factories, close to the consumers in our home markets. Fennobon sells products of a high quality and is currently the only domestic chewing gum maker in Finland. The acquisition is consistent with our growth strategy and we expect it to open new opportunities in the market," says Aberg.