News briefs: Zetar, Hershey and Wrigley Israel
changes its directors and Wrigley Israel denies moving into the
chocolate market.
Zetar sales increase 23.7 per cent UK-based confectionery and snack company Zetar today said net sales for the six months ended 31 October 2007 hit £47m (€65.6m), almost 24 per cent more than the £38m (€53m) for the same period last year. In a trading update, the company said it "has again made good progress during the period", and so will now look to make further acquisitions both in the UK in Europe. More details will be revealed in results for the period, due to be announced in the latter part of January 2008, the company said. The Zetar company was only established in 2005, after acquiring Kinnerton, a UK manufacturer of own brand character confectionery such as The Simpsons and Barbie, as well as private label chocolate products for UK and Australian grocery retailers. In July, Zetar announced said turnover for the year ended 30 April 2007 was up 64 per cent to £94.9m (€142m), thanks to solid investment in niche markets in both the confectionery and snack sectors. Investments were made in the private label and cocoa deli products, as well as in the niche and premium nut markets, Zetar said. Hershey gets rid of directors US-based confectionery company Hershey encouraged six of its directors to resign, after disastrous third quarter financial results. Another two directors handed in their notice, although the trust did not accept their resignations, Hershey said. "The Hershey Trust has made clear it has not been satisfied with the Company's recent results," said chairman of the board Leroy Zimmerman. "After careful reflection and consideration of our responsibilities to the Trust, and the best interests of all Hershey Company shareholders, we determined to elect new Directors to aggressively pursue addressing the Company's business challenges," he added. For the third quarter of 2007, which ended 30 September, Hershey reported that third quarter margins fell a massive 13 percentage points from the same period in 2006, blamed on tough competition in the premium chocolate market and rising milk costs. Operating profit also went down to $129m from $322m over the same period. Wrigley Israel sticks to gum Wrigley Israel denies plans to move into the chocolate market, according to business news portal the Globe, despite acquiring 80 per cent of a Russian chocolate factory earlier this year. The subsidiary of US gum giant Wrigley acquired the stake in Korkunov for $300m in January this year, but "will not enter the chocolate market anytime soon," said company general manager Shay Altman. However, he admitted that "the acquisition certainly demonstrates Wrigley's intentions to be a confectionary company." Wrigley Israel currently has a 62 per cent share in Israel's chewing gum market, with its Orbit brand being particularly popular.
