Cloetta Pays Price For Untimely Demerger

Swedish confectionery producer Cloetta has announced that its net sales fell by 5.5% to SEK735mn (US$91.4mn) in the six months to the end of February. Over the same period, Fazer's operating profit fell by 51% to SEK25mn (US$3.1mn). The fall in Cloetta's sales has been attributed to the end of its licensing agreement with Norway-based Fazer, from which Cloetta demerged in the final quarter of 2008, while the fall in profits has been blamed on the weakening of the Swedish krona, which has pushed up raw material costs. Cloetta has warned that it will make a full-year loss in its

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