Closure of Cloetta Fazer’s Polish subsidiary completed

· Cloetta Fazer has completed the closure of its Polish subsidiary that began in late March 2005. · Cloetta Fazer will continue to market and sell the prioritized brands on the Polish market through its own sales organisation. · The subsidiary’s property, machinery and local brands have been sold to the Polish confectionery company Bomilla Sp Z.o.o. · Cloetta Fazer has also signed a production agreement under which Bomilla will manufacture certain products on license from Cloetta Fazer.

In March this year, Cloetta Fazer announced a decision to close its Polish subsidiary due to market conditions that have not allowed operation of a profitable production and sales company in Poland. In September an agreement was signed to transfer the subsidiary’s property, machinery and local brands to the local confectionary company Bomilla, a sale that will have no effect on earnings. The transaction has been finalised after receiving the approval of the Polish competition authority. ”We are satisfied to have found a solution that will provide new jobs for some of the staff in our wound-up Polish subsidiary,” says CEO Karsten Slotte. Of the 320 people who worked for Cloetta Fazer’s Polish subsidiary, 80 have been employed by Bomilla. Cloetta Fazer’s future strategy in Poland will be to focus on the Group’s strongest brands, and has established a sales force that is part of the Group’s export organisation. “The task of this 40-man sales force will be to continue marketing and selling our prioritised brands on the Polish market. Some employees from the wound-up Polish subsidiary have also been given jobs in the new organisation. We are pleased with what has been accomplished in the first few months and see favourable opportunities to strengthen our position in the Polish market,” says Karsten Slotte. Cloetta Fazer has been active in Poland for several years. The most popular Cloetta Fazer brands on this market are Dumle, Geisha, Fazer Liqueur Fills and Fazer Blue.