Raisio have taken a bold step by selling off their entire confectionery operations in the UK and Czech Republic for $120m to the Valeo Foods Group.
Valeo Foods Group have established themselves as an international food group that mainly produce sweets, snacks, and baking and meal ingredients. The company have operations in UK, Ireland and continental Europe, and the equity value of the deal that was signed and sealed by Valeo is around $92.76m.
Fox’s, Poppets, Just and Pedro are a few of the confectionery brands that Raisio manufactured, and during the January-to-September time frame of 2017, the net sales for the company’s confectionery business amassed an impressive €71.3m ($85.9m).
In addition to this, Raisio’s Q3 2017 earnings (ending in September) highlighted that their quarterly net sales had increased by close to 6%, despite the fact their UK confectionery business is fairly weakened.
However, Raisio’s are set to follow in the footsteps of several other large CPG companies, such as Nestle and Hershey’s, in order to focus on healthier snacks in order to boost their growth.