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.
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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.
