Cadbury spreads further into developing markets

By Karen Willmer

- Last updated on GMT

Related tags Chewing gum Confectionery Cadbury adams Cadbury schweppes

Cadbury has launched its Bubbaloo bubble gum in India, as part of
its continuing bid to take advantage of developing markets.

As the confectionery market is growing, Cadbury is focusing upon key developing markets for expansion. Within Asia Pacific, its target markets are India and Thailand. The company claims its Bubbaloo brand is the number one bubble gum in the world due to its liquid centre, and hopes it will strengthen its place within the Indian confectionery market. "India is one of the fastest growing gum markets in the world, and we see massive potential for Bubbaloo in this market,"​ said Anand Kripalu, managing director of Cadbury India. "Bubbaloo, along with Halls and Éclairs, complements our confectionery portfolio and will significantly contribute to enhance our long-term leadership position in the category." ​Cadbury Schweppes currently holds a 26 per cent share of the world gum market, as well as a 72 per cent share of the Indian chocolate confectionery market. This comes less than a month after the company announced its purchase of Turkish Intergum, one of the top five chewing gum manufacturers in the world. The company has secured itself within the world gum market through brands such as Trident, Hollywood, and Dirol. It launched its Trident brand in the UK in February this year. Cadbury said revenues from centre-filled gum were on track to double to around £200m (€295m) in 2007. Euromonitor told last week that Cadbury's financial results indicate that its chewing gum brands are already showing potential for growth within the market, with the company's revenues in the segment surging by 10 per cent in 2006. The company announced last month its plans for restructuring in order to cut its cost base, including the selling of the American Beverages business and closing 15 per cent of its manufacturing sites around the world. As part of this restructuring, it said yesterday that it had completed the sale of its Australian jams, toppings and jellies business to HJ Heinz Australia. Its aim is to "focus on fewer, bigger and more value-creating initatives"​ and "significantly reduce complexity across all aspects of the business." ​Euromonitor said the gum market offers better prospects than confectionery with an annual average growth rate of 3.3 per cent expected from 2007 - 2011. Cadbury claims to hold the second largest gum share in the world, and is number one in 18 of the top 50 gum markets. It also claimed revenues in the first quarter of 2007 were ahead by 8 per cent in the developed market and 11 per cent in the emerging markets.

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