Cloetta acquires ‘very special’ natural candy technology with Goody Good Stuff buy
Goody Good Stuff has a plant derived bio-gum technology that cuts out the need for animal-based gelatin in gummies. It also enables it to produce gummies without artificial colors, gluten, dairy and fat.
“That is very very special and few products have all those things,” Jacob Broberg, communications and investor relations at Cloetta told ConfectioneryNews.
Goody Good Stuff’s main markets are the UK and the US and it has some presence in other EU markets. It posted SEK 10m ($1.5m) in sales in 2012.
Broberg said that Cloetta currently had a very limited business in the US. While Goody Good Stuff is still relatively new to the market there, it has recently signed a contract with 7-Eleven that could help the Cloetta group grow in the US.
It is expected that the brand will also be rolled out in Cloetta’s core markets including Nordic countries, Italy and the Netherlands.
Goody Good Stuff has only a handful of staff, which will all be retained and will operate almost as an independent company.
Growth in natural candy
Cloetta CEO Bengt Baron said: “Acquisitions are a part of our growth strategy and Goody Good Stuff gives us a possibility to strengthen our product offer within an interesting segment.
The products from Goody Good Stuff can be consumed by everyone as it is a natural candy free from allergens. This is a segment where we see increased consumer demand and where Cloetta can play an important role.”
The acquisition marks Cloetta’s first since it merged with Leaf in December 2011 for a €753m ($970m) deal.
Goody Good Stuff has no production facilities and manufacturing is outsourced to a company in mainland Europe.