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Business

Chocolate giant questioning future in Denmark

admin
April 11th, 2014


This article is more than 10 years old.

Toms considering moving towards the much larger German market

Danish confectionery producer, Toms, is considering pulling out of Denmark because it claims that the high duties and taxes imposed on the industry here are stifling its bottom line.

Toms had a turnover of 750 million kroner in Denmark in 2013, but had to pay 400 million kroner in taxes.Jesper Møller, the head of Toms, wouldn’t rule out leaving Denmark in the future.

“We have a strategy largely focusing on growth abroad,” Møller told FødevareWatch.

“The competition levels and fees in Denmark simply make it to expensive to improve significantly and it’s a relative small market and small population. The money is better spent growing elsewhere,” he said.

READ MORE: Danish companies striking gold down under

German success
Toms purchased a company in Germany in 2012 and the chocolate giant is working on gaining a foothold in the vast market of 80 million consumers. But the company is also eyeing a possible expansion to Poland, although Møller hopes that Toms won’t have to leave Denmark behind.

“I hope not because we are fighting hard for the jobs that are here,” he said. "But it is clear that we are challenged because everything in Denmark is expensive. Not just hourly wages, but many other aspects.”

Toms is also making some progress in the US and Australia, where its products are particularly in demand around Christmas and Father's Day.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”