Confectionery, Western Europe
Confectionery has become part of Raisio's product range through acquisitions. Both companies acquired in the UK had confectionery operations that were combined. In addition, Raisio acquired a Czech confectionery company Candy Plus at the end of 2012. Net sales for Raisio's confectionery business amounted to almost EUR 100 million. Confectionery is a growing and very profitable part of Raisio.
Main events in 2013
- Raisio's confectionery sales increased significantly. Most of the growth was generated by Candy Plus.
- Sales in soft gums made by Raisio increased particularly well.
- Sales growth in the UK was focused on the increased sales volume of retailers' private label products.
- As a result of streamlining measures, the Skegness confectionery factory is in the process of being closed and the production transfer to the Leicester and Rohatec factories has been initiated. Production is estimated to start in the new locations during the second and third quarters of 2014.
In 2013, consumer demand for confectionery remained stable in Raisio's key market areas. Sales developed particularly well in soft gums and chocolate sharing packs.
Due to the continued price-driven consumer demand in the UK, competition for branded products intensified and retailers expanded their range of private label products.
Candy Plus, acquired from the Czech Republic in November 2012, has been integrated into Western European confectionery business. Net sales for the Western European confectionery business increased from the comparison year particularly due to the acquisition of Candy Plus.
Raisio complemented its range of products sold under Fox's and Poppets brands in the UK. Instead of extensive launches of new products, Raisio focused on the expansion, pricing and promotional mechanism development of packaging alternatives in 2013.
Sales in soft gums increasing
In connection of the Candy Plus acquisition, Raisio introduced a new production line for extruded soft candies at the Rohatec factory. Demand for the confectionery made on the new line has met the expectations. Raisio believes that the demand for extruded soft candies will continue to grow and offers new innovative high-quality products to meet the increased demand.
Raisio's own branded products account for more than a quarter of the company's confectionery sales, the rest includes products made under our customers' brands and products produced for other confectionery operators. Raisio's best-known confectionery brands are Fox's Glacier, Juicee Gummee and Poppets. Confectionery is imported to almost 50 countries from the Czech Republic. Consumers and international customers value Raisio's expertise and ability to develop new products.
Raisio centralising its confectionery production
Good growth prospects for Raisio's confectionery
At the end of October, after extensive studies and negotiations, Raisio decided to centralise the confectionery production of the UK-based Skegness factory to another UK factory in Leicester and to the Rohatec factory in the Czech Republic. The confectionery production will end at the Skegness factory by the end of March 2014. The employees have been offered work at Raisio's other UK factories. Production is scheduled to begin at new sites in the second half of 2014.