Cloetta Fazer to invest SEK 270 million in two new chocolate lines

Cloetta Fazer to invest SEK 270 million in two new chocolate lines

Cloetta Fazer has a strong position in the Nordic chocolate market with brands
like Karl Fazer, Kexchoklad, Dumle, Geisha, Center and Polly. Sales of the
prioritised brands have increased in recent year, creating a need for additional
capacity in the company's chocolate manufacturing. Cloetta Fazer has therefore
decided to invest in two new chocolate lines, one at the factory in Vantaa,
Finland, and on at the factory in Ljungsbro, Sweden. This will enable the
company to continue its focus on the strong brands while at the same time
optimising efficiency in the existing chocolate manufacturing. The total
investment amounts to SEK 270 million.

Cloetta Fazer has four production facilities, of which two are located in Sweden
and two in Finland. In Finland, the Vantaa factory produces chocolate products
and the factory in Lappeenranta sugar confectionery. In Sweden, the Ljungsbro
factory is focused primarily on chocolate products and Karamellpojkarna's
factory in Alingsås on throat lozenges, toffee and lollipops.

“Because chocolate is currently the most expansive segment of market, we will
continue to focus on development of our prioritised brands and aim to offer
interesting new chocolate products to the consumers,” says Cloetta Fazer's CEO
Jesper Åberg. 

Cloetta Fazer has a leading position in several geographical markets and its key
brands have grown in recent years. 

“New product launches, delivery reliability and high quality are key success
factors, and this investment in our own Nordic factories will give us the
necessary conditions to achieve all of these,” says Jesper Åberg. 

The investment in two new production lines is one of the largest in the
company's history and is a vital component of Cloetta Fazer's growth strategy.
The first products from the new lines will reach the market in 2009. 

The average number of employees in the Cloetta Fazer Group is 1,500, of whom
approximately 600 work in Vantaa and 370 in Ljungsbro. 

Kexchoklad, Center and Polly are the largest volume products at the Ljungsbro
factory in Sweden, while Karl Fazer, Dumle and Geisha are largest at the Vantaa
factory in Finland.

For additional information contact:
Jesper Åberg, CEO and Managing Director, mobile +46 70-180 21 01 
Curt Petri, CFO and Deputy Managing Director, mobile +46 70-593 21 69
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.