The confectionery market is traditionally divided into sugar confectionery, chocolate confectionery, pastilles and chewing gum. Cloetta is active in all these categories, as well as nuts.
The total market for confectionery in Cloetta’s main markets amounts to approximately SEK 94bn. The markets where Cloetta is active account for around 67 per cent of Western Europe’s total confectionery consumption.
The confectionery market is relatively insensitive to economic fluctuations and shows stable growth that is driven primarily by population trends and price increases. The market recession is affecting Cloetta mainly through general price pressure from the retail trade and increased competition from the trade’s own private labels. However, private labels account for a relatively small share of confectionery compared to other grocery products.
Cloetta has a very strong sales organisation on its main markets and thereby Cloetta is a very competitive supplier in food retailing. With its category expertise and by its presence in stores via its own sales force, Cloetta can reach out with campaigns, ensure that centrally negotiated listing and distribution agreements are followed and ensure good visibility on the stores’ shelves, in the checkout lines and in other places. This creates opportunities for both food retailers and the Company to achieve good results together. Especially in the Nordic region, with large distances to cover, a more complete product portfolio can create economies of scale compared with other competitors in the confectionery market. Through its own sales force can new products quickly be launched in stores and thus reach the consumer.