Stabburet to take over Tomtegløgg and other brands from Sara Lee on 1 March 2010.
Stabburet is buying Tomtegløgg (spiced cordial), Fredrik Hvedings Eddikessens (vinegar) and Fru Bennett’s Bitter Appelsin (orange marmalade) brands from Sara Lee Household and Body Care.
The overall market for gløgg in Norway totals just under NOK 40 million in terms of consumer sales, most of which take place in the grocery sector. Tomtegløgg holds a unique position in this market. The other brands that Stabburet is acquiring are long-established names in their markets.
Tomtegløgg came on the market in 1969. As many as 8 out of 10 people drink gløgg in connection with various Christmas and New Year festivities.
“Tomtegløgg is an important family product with the taste that most Norwegians associate with the Yuletide beverage, gløgg. It is strongly rooted in Norwegian Christmas traditions and fits in perfectly with Stabburet's product range and growth plans. We intend to further develop Tomtegløgg, thereby reinforcing our role as a key supplier of products for the Christmas season,” says Managing Director Bente Brevik at Stabburet.
For many years, Tomtegløgg has primarily been manufactured under contract for Sara Lee at Stabburet's factory at Gimsøy Kloster in Skien, Norway.
“Through this acquisition, Stabburet will now have total responsibility for Tomtegløgg. This opens up opportunities for product development and increased sales,” declares Bente Brevik.
The parties have agreed not to publish the purchase price. Provided the approval of the Norwegian Competition Authority, the takeover will be effective from 1 March 2010.
Sara Lee is an international branded consumer goods company with strong positions worldwide. The company's sales for 2008/2009 totalled $ 12.9 billion. Stabburet's sales for 2008 amounted to NOK 2.8 billion. Stabburet has strong brands such as Grandiosa, Big One, Originale, Nora, Idun, Nugatti and Stabbur-Makrell.