By organizing the women in producer groups, AAK builds a
direct buying relationship with them, whereupon the women
are trained in good post-harvest practices. The main advantage
for the women is a higher return, as they are selling
directly to AAK. It’s also a guaranteed outlet for all their
shea kernels. The advantage for Cloetta is a more secure,
transparent and sustainable supply chain with increased
opportunities to impact the quality of the shea kernels.
Another important benefit for the women is the possibility
of obtaining pre-financing. At the beginning of the season,
AAK extension officers visit the producer groups to discuss
the women’s outlook for the season. Part of the volume is
then pre-financed, and the women are paid at a time of year
when they have little or no other source of income. It’s also
a guarantee that AAK will come back and buy all their shea
kernels. The pre-financing is interest-free – an advance
payment, not a loan.
The AAK program, which has been running since 2009
in Burkina Faso and since 2015 in Ghana, is a good way to
responsibly source shea, increase transparency and improve
social conditions for workers in the shea supply chain.
Cloetta recently visited West Africa to meet with some
of the women’s groups. What learnings did you get
from your visit?
A key learning was that we take so much for granted in our
general way of life which is simply not possible to do in rural
Africa. This learning creates a deeper understanding that we
need to work with sustainability programs like the one AAK
has set up over a long period of time – it’s not a quick fix!
We also learned that it’s important, before you enter and
invest in a sustainability program, to evaluate the impact
of such a program in person in the countries of origin, in
this case by following the supply chain from tree to port in
Ghana.
Where do you see Cloetta’s sustainability work in the next
few years?
Cloetta’s overall goal for corporate responsibility is to build
sustainable long-term value. For Cloetta, sustainable value
is about growing as a company while at the same time
ensuring that the people and environments that are affected
by Cloetta’s operations or products are not negatively
impacted. Cloetta’s sustainability commitment functions as
the road map for building long-term sustainable value.
Cloetta in brief
Founded in 1862, Cloetta is a leading confectionery
company in the Nordic region and the
Netherlands. The company is manufacturing and
marketing confectionery, chocolate products,
nuts, pastilles, chewing gum, and pick & mix concepts.
In total, Cloetta products are sold in more
than 50 markets worldwide. Cloetta owns some
of the strongest brands on the market, such as
Läkerol, Cloetta, Candyking, Jenkki, Kexchoklad,
Malaco, Sportlife, Red Band, and Nutisal.
• Annual sales: SEK 5.8 billion (2017)
• Operating profit (EBIT), adjusted: SEK 604 million (2017)
• Strong brands and market positions
• Main markets are Sweden, Finland, Denmark, Norway, the Netherlands, Germany, and the UK
• 2,500 employees in 11 countries
• 8 production factories in 5 countries
• Listed on Nasdaq Stockholm
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