Cloetta Fazer acquires chewing gum maker Fennobon

Cloetta Fazer acquires chewing gum maker Fennobon

Cloetta Fazer has acquired Finland-based Fennobon Oy, a company specialised in
sugar-free chewing gum and candies. The company has a focus on high quality and
uses xylitol in all of its products. Fennobon is number three in the Finnish
chewing gum market and Finland's only domestic manufacturer of chewing gum
products. The company's well known brands include XyliDent- and Mumin xylitol
chewing gum.

Chewing gum makes up approximately 10% of Finland's total confectionary market
and the corresponding share in Sweden is 6%. Among other things, the acquisition
of Fennobon Oy will give Cloetta Fazer expertise in sugar-free products and a
strong position in a fast-expanding product segment.
“In line with our strategy, we are seeking growth by diversifying into product
areas where we currently have a weak position or none at all. Until now, Cloetta
Fazer has not had any products of its own in this segment. Consumers in Finland
have shown a preference for sugar-free chewing gum for many years and this trend
is also visible in other European countries. We see major potential to expand in
this segment. Fennobon is an innovative player and we are very pleased with the
knowledge and opportunities this company brings to us,” says Cloetta Fazer's CEO
Jesper Åberg.
Fennobon has its factory in Karkkila, Finland, northwest of the capital city of
Helsinki. The company was established in 1990 and has 42 employees. In 2006
Fennobon reported annual sales of approximately SEK 66 million (EUR 6 million).
Of the total sales volume, around 40% is exported to countries like Japan, the
USA and Germany.

“Delivery reliability, consumer knowledge and superior quality are key success
factors for Cloetta Fazer. Today we sell our products primarily in the Nordic
and Baltic regions and see the advantages or manufacturing the products in our
own factories, close to the consumers in our home markets. Fennobon sells
products of a high quality and is currently the only domestic chewing gum maker
in Finland. The acquisition is consistent with our growth strategy and we expect
it to open new opportunities in the market,” says Jesper Åberg.

All of Fennobon's products are made at the production facility in Karkkila and
production is planned to remain there. Cloetta Fazer's growth target in the
chewing gum segment also calls for increased production capacity at the factory.

“Our aim is to grow and strengthen our brands, and we believe that we will have
better scope for ongoing developing of the company as part of the Cloetta Fazer
Group,” says Miska Kuusela, who is Managing Director of Fennobon and will
continue in this role following the acquisition.

The transfer of ownership will take place on 1 January 2008. The parties have
agreed not to disclose the purchase price. 

For Cloetta Fazer, the acquisition of Fennobon represents a growth venture in
the chewing gum segment. “Nearly all chewing gum sales in Finland consist of
products with a high xylitol content of the type Fennobon is specialised in. We
strongly anticipate continued growth for the chewing gum segment and will invest
ambitiously to develop and market these products,” says Tom Lindblad, Managing
Director of Cloetta Fazer's Finnish subsidiary Cloetta Fazer Confectionery Ltd.

For additional information please contact
Jesper Åberg, CEO and Managing Director, mobile +46 70-180 21 01 
Managing Director of Cloetta Fazer Confectionery Ltd., Tom Lindblad, mobile +358
400 452 226
Website: www.cloettafazer.com

About Cloetta Fazer
Cloetta Fazer is the Nordic region's leading confectionery company, with a
market share of around 22 per cent. The company has production facilities in
Sweden and Finland. Cloetta Fazer's strength lies in its many popular brands,
such as Karl Fazer, Kexchoklad, Dumle, Geisha, Polly and Center. The average
number of employees is around 1,500 and annual sales in 2006 amounted to
approximately SEK 3 billion.