CSM considers divestiture of sugar confectionery business

According to press reports the Dutch food concern CSM nv,Diemen,is considering the divestiture of their sugar confectionery business.The company, which reported a 30.5% drop in profits for the first half of 2004 down to € 46.2 m (2003: 66.5 m), is implementing a new strategy focusing on business to business activities. CSM said their poor half year result was due to the negative effects of the weak US dollar and the “disappointing” performance of their division CSM Bakery Supplies Europe. Nevertheless, the group’s overall net sales remained more or less unchanged at € 1.68 bn (2003:€ 1.70 bn). CSM has announced there will be some restructuring this year,involving the divestiture of less profitable businesses, which might include sugar confectionery. Eight confectionery factories as a result of acquisitions CSM came into possession of eight confectionery factories as a result of various acquisitions and is well-represented on confectionery markets in Scandinavia and the Benelux countries.Their brands include Leaf,Malaco,Red Band and Venco as well as Chewits Sportlife,XyliFresh,Dietorelle, Sperlari and Lutti. CSM is said to be already negotiating with potential buyers