Production

Cloetta has 12 factories in Sweden, Italy, the Netherlands, Belgium, Slovakia and Ireland. All in all, Cloetta produced 120,000 tonnes of confectionery during 2015.

Cloetta’s supply chain is responsible for production, purchasing, planning, logistics, quality, technology and safety. During the year, the top priority has been on completing the decided factory restructurings, integrating the new factories in Helsingborg, Sweden and Dublin, Ireland into the network and a constant striving for continuous improvements through Lean and Value Engineering.

Production rationalisations

The merger between Cloetta and LEAF, combined with excess capacity in the production structure, created opportunities to rationalise production.In 2012 Cloetta decided to close the factories in Alingsås and Gävle, Sweden, and Aura, Finland. The closure of the Alingsås factory was completed during 2012.

The factory in Aura was closed in the first quarter of 2013 and the factory in Gävle terminated production at the end of December 2013. This production has been moved primarily to Ljungsbro, Sweden, and Levice, Slovakia, which reached full-scale production during 2014. In addition, manufacturing of a number of products has been moved from a third party to Cloetta’s own factories during the year, of which the most important was Tupla for the Finnish market, which was insourced from the third-party supplier, Natra, to a new line in Ljungsbro. With this move, the Manufacturing restructuring programme that was announced in 2012 was concluded according to plan.

Moving a production line is a complex process that requires extensive documentation, careful planning, knowledge transfer, technical adaptations and fine-tuning. Added to this is often a physical relocation of machinery.

Management systems

Cloetta has a central management system to ensure standardised working methods in its operations. Each production unit has a locally adapted management system that is linked to the central system. Central policies, goals and procedures are broken down and implemented at the factory level.

Occupational safety

Employee safety is fundamental and is the top priority in every production facility. Continuous risk assessments and increased reporting of accidents and injuries contribute to greater knowledge about the causes of accidents in the workplace, which leads to making preventative measures an integral part of day-to-day operations and minimises the risk for accidents.

These systematic efforts have made it possible to reduce the number of injuries at work in recent years.

Quality and product safety

Cloetta places rigorous demands on quality and product safety. First class raw materials and correct treatment and processing methods are essential for manufacturing of high quality confectionery. Continuous efforts are made to ensure that the products meet the requirements and expectations of consumers and retailers.

Cloetta’s factories are certified according to the BRC Global Standard for Food Safety and/or ISO 9001.

Planning and logistics

Effective production planning leads to lower capital tied up in the form of inventories of both raw materials and finished products, at the same time that it increases the service level. Delivery reliability is one of the most critical parameters for the retail trade. Cloetta has a very well developed planning system that integrates the entire value chain from supplier to production and final customer. The system also integrates financial planning and prices.

Cloetta works continuously to optimise its flows and working methods, both internally and externally, together with customers and suppliers.

Purchasing

Cloetta’s largest cost items in production, accounting for around 60 per cent of total costs, are raw materials and packaging.

Raw materials are purchased only from suppliers that can be verified against Cloetta’s quality, product, safety and environmental requirements. All suppliers to Cloetta are evaluated and approved before they are permitted to deliver raw materials to the factories. The process varies depending on the type of supplier and the type of material delivered. Certain suppliers are physically audited at regular intervals by Cloetta’s employees.

Lean 2020

Cloetta works constantly to decrease costs and reduce waste. Key success factors in the production process include long-term and day-to-day efforts to achieve continuous improvements and a learning-driven culture. This is conducted through systematic work on lean processes and Value Engineering.

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