Larger entities in Confectionery & Snacks
With a view to increasing its competitive strength and creating new growth opportunities in Confectionery & Snacks, Orkla intends to create a single company in each country.
Orkla established the Confectionery & Snacks business area on 9 January 2013 in order to combine entities that had similar strategic and operational potential.
The new CEO of Orkla Confectionery & Snacks will be presented today. At the same time, Orkla is taking the next step on the path to increasing its competitiveness in this business area. Orkla Confectionery & Snacks will establish a single dynamic company in each country.
The intention is to merge KiMs Norge, Sætre and Nidar into a single company in Norway. Similarly, Orkla intends to merge OLW and Göteborgs Kex in Sweden, and Chips and Panda in Finland.
Orkla Confectionery & Snacks also includes KiMs in Denmark and Latfood in Latvia. These companies will not be affected by the mergers*.
“It is absolutely essential to determine how we can increase our competitive strength and create new growth opportunities in the Nordic region. We must be optimally equipped to do battle with strong international players. Establishing larger entities will create more opportunities for innovation within and between categories,” says Orkla President and CEO Åge Korsvold.
Managers, employees and trade union representatives have been informed of the intention to establish a single company for snacks, biscuits and confectionery in each of Norway, Sweden and Finland. Meetings for discussions with the trade union representatives are now starting. The aim is to arrive at a conclusion regarding a new general structure for Orkla Confectionery & Snacks in the course of April.
Orkla Confectionery & Snacks is one of five business areas in Orkla. In 2012, the business area had a turnover of around NOK 4.8 billion and employed a workforce equivalent to 2,231 man-years at year end. The companies in Orkla Confectionery & Snacks are KiMs Norge, Sætre and Nidar in Norway, OLW and Göteborgs Kex in Sweden, Panda and Chips in Finland, Latfood in Latvia and KiMs in Denmark. Orkla’s turnover totalled approximately NOK 30 billion in 2012. At year end, the company had 28,000 employees, about half of whom work in the branded consumer goods business.
Orkla ASA, 8 April 2013
For more information, please contact:
Executive Vice President, Corporate Communications and Corporate Affairs
Mobile: +47 928 45 828
*For accounting purposes Kalev in Estonia will report under Orkla Confectionery & Snacks, but in organizational terms be a part of Orkla Foods.