# Cloetta

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/cloettab).

## Overview

Cloetta is a prominent confectionery company in Northern Europe, known for its strong local brands in the confectionery and nuts segments. The company operates with a business model focused on branded packaged products and pick & mix offerings, ensuring effective sales and distribution to retail channels. Cloetta's products are sold in over 60 countries, with a significant presence in the Nordic countries and a growing market in North America. The company is listed on Nasdaq Stockholm and continues to expand its market presence through innovative product development and strong consumer loyalty.

## Products & services

• Branded packaged confectionery products
• Pick & mix confectionery offerings
• Läkerol throat lozenges
• CandyKing pick & mix concept
• Jenkki chewing gum
• Kexchoklad chocolate bars
• Malaco candy

- **Branded Packaged Products** (72%) — Includes packaged confectionery products sold under various brands.
- **Pick & Mix** (28%) — Offers a variety of confectionery products for self-selection by consumers.

- Branded packaged confectionery products
- Pick & mix confectionery offerings
- Läkerol throat lozenges
- CandyKing pick & mix concept
- Jenkki chewing gum
- Kexchoklad chocolate bars
- Malaco candy

## Customers

Cloetta's customer base primarily consists of retail chains and supermarkets across Northern Europe, with a growing presence in North America. The company's strong local brands attract consumers seeking quality confectionery products, while its pick & mix offerings appeal to those looking for variety and customization. Cloetta's effective distribution network ensures high availability of its products in retail outlets, enhancing consumer access. The company also targets health-conscious consumers with sugar-free and functional confectionery options, leveraging its strong brand recognition and consumer loyalty.

- **Retail Chains** (primary) — Purchase branded packaged products for resale to consumers.
- **Supermarkets** (primary) — Stock pick & mix offerings to provide variety to shoppers.
- **Health-Conscious Consumers** (emerging) — Buy sugar-free and functional confectionery products.

- Retail chains and supermarkets seeking strong local confectionery brands
- Consumers looking for quality confectionery products
- Customers interested in variety and customization through pick & mix
- Health-conscious consumers attracted to sugar-free options
- Retailers valuing effective distribution and high product availability

## Geography

Cloetta has a strong geographic presence in Northern Europe, with significant market shares in Sweden, Finland, and the Netherlands. The company operates six production units across five countries, ensuring efficient manufacturing and distribution. Cloetta's products are available in over 60 countries, with key markets including Germany, the UK, and Denmark. The company is expanding its footprint in North America, driven by the growing popularity of its pick & mix concept. This geographic diversity helps mitigate risks associated with regional economic fluctuations.

- **Sweden** (30%)
- **Finland** (20%)
- **Netherlands** (14%)
- **Denmark** (11%)
- **UK** (5%)
- **Germany** (7%)
- **International Markets** (7%)

- Strong presence in Northern Europe, especially Sweden and Finland
- Manufacturing units in five countries ensure efficient production
- Products sold in over 60 countries, including Germany and the UK
- Expanding market presence in North America
- Geographic diversity mitigates regional economic risks

## Strategy

Cloetta's strategic priorities include strengthening its market position through brand development and expanding its pick & mix offerings. The company focuses on enhancing profitability by optimizing its product mix and improving operational efficiency. Cloetta is investing in innovation to meet changing consumer preferences and leveraging its strong distribution network to increase market penetration. The company is also exploring growth opportunities in North America, capitalizing on the rising interest in Swedish candy. These strategies aim to sustain Cloetta's competitive advantage and drive long-term growth.

- **Brand Development** (medium-term) — To strengthen market position and consumer loyalty.
- **Operational Efficiency** (short-term) — To enhance profitability and sustain competitive advantage.
- **Innovation** (long-term) — To meet changing consumer preferences and drive growth.

- Strengthen market position through brand development
- Expand pick & mix offerings to attract more consumers
- Enhance profitability by optimizing product mix
- Invest in innovation to meet consumer preferences
- Leverage distribution network for increased market penetration
- Explore growth opportunities in North America

## Risks

Cloetta faces several business risks, including fluctuations in raw material costs, particularly cocoa, which can impact profitability. The company is also exposed to geopolitical risks, such as the ongoing conflict in Ukraine, which may affect global supply chains. Currency exchange rate volatility poses financial risks, given Cloetta's international operations. Additionally, the company must manage operational risks related to its production facilities and distribution network. Industry-specific risks include changing consumer preferences and regulatory changes affecting product formulations.

- **Raw Material Cost Fluctuations** [high] — Cocoa price volatility affects profitability.
- **Geopolitical Risks** [medium] — Conflicts may disrupt supply chains.
- **Currency Exchange Rate Volatility** [high] — Affects financial performance due to international operations.

- Fluctuations in raw material costs, especially cocoa
- Geopolitical risks affecting global supply chains
- Currency exchange rate volatility impacting financials
- Operational risks in production and distribution
- Changing consumer preferences and regulatory changes

## Accounting

Cloetta's financial statements are prepared in accordance with IFRS, with critical accounting matters including revenue recognition and fair value measurement. The company recognizes revenue at the point of sale, impacting the timing of revenue reporting. Fair value measurements, particularly for financial instruments and contingent earn-out considerations, require significant judgment and can affect reported earnings. Cloetta's lease accounting under IFRS 16 impacts balance sheet presentation and financial ratios. Changes in tax provisions and deferred tax positions also influence the effective tax rate and net income.

- **Revenue Recognition**
- **Fair Value Measurement**
- **Lease Accounting**

- Revenue recognized at point of sale affects timing of reporting
- Fair value measurements require significant judgment
- Lease accounting under IFRS 16 impacts balance sheet
- Changes in tax provisions affect effective tax rate
- Contingent earn-out considerations influence reported earnings

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*Last updated: 2026-08-11T04:04:51.655461+00:00*