CSM sells Leaf's UK chocolate brands to focus on core brands - Brief Article

Eurofood, Feb 17, 2000

Dutch food and ingredients group CSM confirmed that it is in discussion with a group of private entrepreneurs with extensive experience in the confectionery business regarding the partial sale of its UK Leaf confectionery subsidiary. Rumours have been circulating about a potential sale for some weeks (see Eurofood, 16 December 1999, p 19) but CSM had hitherto declined to comment.

The turnover of the brands in question, namely Elizabeth Shaw and Famous Names luxury chocolates, amount to some ??18m. Leaf UK also has sugar confectionery brands which generate turnover of approximately ??30m, including the popular Chewits sweets, but these are not up for grabs. CSM acquired Leaf from Finnish aging and confectionery group Huhtamaki last summer (see Eurofood, 6 May 1999, p5) but its confectionery strategy is focused primarily on sugar confectionery rather than chocolate, so the divestments have not come as a surprise to the sector.