Sweden's Cloetta has indefinitely shelved plans for a new confectionery plant in the Netherlands, citing “increased risk relating to energy supply” and ongoing permitting issues.
The Candy King pick-and-mix brand owner originally announced plans for the greenfield investment in 2022 while shuttering three existing confectionery facilities in the Netherlands and Belgium.
However, in September, the company’s president and CEO Katarina Tell put on hold the investment in the Netherlands plant while it conducted a “reassessment” of the project and explored “alternative options to secure a more efficient manufacturing structure”.
A review concluded that Cloetta could maintain long-term financial and operational flexibility without the new facility.
Cloetta noted that its existing supply network can compensate for the planned production volumes that the Netherlands plant would have handled in the mid-term.
It added the decision will allow the company to focus on its existing and contract manufacturing networks, including upgrading its facilities.
Tell said in a statement: “With this decision, we create the opportunity for a fit-for-purpose supply chain, enhance our possibility to strengthen our market presence and grow our product portfolio, and ensure continued strong consumer engagement.”
As a result of scrapping the project, Cloetta expects a one-time net gain in the first quarter of 2025.
“Approximately Skr140m ($12.8m) will be recognised as a gain in items affecting comparability and approximately Skr10m recognised as a cost in net financial items,” the confectionary maker said.
The latest development builds on Cloetta’s announcement last year to sell its Nutisal roasted nuts brand to The Monchy Food Company for €5m to €6m ($5.4m to $6.5m) to focus on its core confectionery brands.
In January, Cloetta reported net sales of Skr8.61bn for the full year 2024, reflecting 3.8% year-on-year growth.
Operating profit, adjusted for items affecting comparability, rose 13.9% for the year to Skr910m. Net income was up 9.2% at Skr477m.
