Cloetta CEO to step down after a year in the role

24-Aug-2016 - Last updated on 25-Aug-2016 at 11:38 GMT

Cloetta board searches for a new CEO as David Nuutinen resigns

Scandinavian confectioner Cloetta is searching for a new permanent CEO, after the current head of the company, David Nuutinen, left for “private reasons.”

Nuutinen has been with Swedish confectionery company for the past 13 years and was appointed group CEO and president in July 2015. He will leave the firm by September 1 this year, according to Cloetta. But Nuutinen will continue to support the board and the management team during his six months notice period.

CFO, Danko Maras, will assume the position as interim president and CEO of Cloetta.

Sales growth in Q2

Cloetta’s posted a 6.5% increase in net sales in its latest second quarter Q2 results and recorded 2% organic growth accounted for 2%. Its recent Lonka acquistion contributed 4.9% growth.

Cloetta agreed to acquire 100% of the shares of Dutch confectionery company, Lonka, last year to strengthen its footprint in Netherlands. However, Cloetta’s Q2 report shows a decrease in sales in Netherlands due to weak market development.

**Brexit is not expected to be ‘material’ for Cloetta**

Cloetta’s sales also decreased in the UK, along with other export markets, including the Netherlands and Italy, Nuutinen said in a statement.

“The reported drop in sales in the UK is partly attributable to a weaker British pound following the Brexit referendum,” he said.

“Less than 5% of the group’s sales come from the UK and the possible future impact of Brexit is therefore not expected to be material for Cloetta.”

Skipper's Pipes packaging redesign

Cloetta recently redesigned the packaging for its Skipper’s Pipes brand. Skipper’s Pipes is a licorice product that is mainly sold in Denmark and through the Travel Channel. Cloetta’s marketing manager in Denmark, Marie Lykke Jensen, told ConfectioneryNews the company’s current focus is to grow its market shares within sugar confectionery and pastilles sectors, and to increase brand awareness in the country. Nuutinen previously commented that Cloetta’s sales were up during its Q2 this year in Denmark, despite the fact that the confectionery market in the country was “predominantly negative.”