Toms Group, Denmark’s largest confectionery producer, is restructuring its operations by scaling down its home market production and significantly expanding its manufacturing footprint in Poland. This strategic move aligns with the company’s vision to enhance profitability, streamline processes, and bolster its global competitiveness.
Shift in Production: Denmark to Poland
The company has announced plans to phase out chocolate production at its facility in Ballerup, Denmark—its oldest plant, operational since 1962. While the Ballerup site will no longer manufacture chocolate, it will continue to serve as Toms Group’s headquarters. In Denmark, Toms will retain its Helseholmen sweets factory, which produces popular products such as liquorice and wine gums.
Meanwhile, the Nowa Sól facility in Poland’s Lubusz Voivodeship will become the focal point of Toms Group’s chocolate production. A “nine-figure” investment has been earmarked for the Nowa Sól site over the coming years, with the expansion expected to conclude by 2028. This investment will enhance production capacity and compensate for the scaled-down operations in Ballerup.
Employment Impact
The restructuring will affect fewer than 100 jobs in Ballerup. However, Toms Group has indicated that some employees may transition to the Helseholmen site. The expansion in Nowa Sól is expected to create 90-100 new positions, offsetting job losses in Denmark.
Strategic Vision
“The transformation is an impactful strategic action to support our vision of creating a profitable, growing, and competitive Toms,” CEO Annette Zeipel stated. “This move will simplify processes, strengthen strategic sourcing, and bring us closer to industry benchmarks in profitability.”
Toms Group reported a 25% drop in net profit for the 2023 financial year, down to DKr54.3 million ($7.6 million). Earnings before interest and tax (EBIT) also declined by 1.5% to DKr97.6 million. Despite these challenges, revenue rose 3.1% to DKr1.7 billion, driven by the company’s iconic brands such as Toms Guld Barre, Anthon Berg, and Hachez.
Market Challenges and Opportunities
Toms Group faced a “challenging year” in 2023, marked by raw material price hikes, currency fluctuations, and increased consumer demand for promotions and private-label products amid inflation. CEO Zeipel highlighted ongoing margin pressures due to rising cocoa prices and continued inflationary shopping patterns.
Despite these hurdles, Toms sees this restructuring as an investment in its future. “With improved profitability, we can further invest in our beloved brands, product innovation, international growth, sustainability, and talent development,” Zeipel explained.
Global Reach and Market Focus
Toms Group supplies confectionery across Europe, with Denmark remaining its largest market. The company also serves regions in North America, China, Australia, and the Middle East. The Nowa Sól expansion is set to enhance its ability to meet growing international demand and position the company as a modern and competitive player in the global confectionery industry.
Looking Ahead
The transition from Ballerup to Nowa Sól is expected to take three to four years, with minimal immediate impact on staff in Denmark during the initial phase. By consolidating operations and investing in its Polish facility, Toms Group aims to strengthen its position as a leader in the confectionery sector while navigating economic challenges and evolving consumer trends.
This strategic realignment underscores Toms Group’s commitment to building a more resilient and profitable future for its brands and operations.
