There have been a number of developments in the confectionery
industry in the last week, not least of which is the news that UK
retailer ASDA is attempting to blend popular culture with novelty
candy.
European confectionery giant Nestle has overcome rising energy
costs to report strong profits in the company's first half results
announced today, but admits there remains room for improvement in
UK brands.
Global confectionery maker Cadbury Schweppes has opened its first
R&D centre in south-east Asia, as it seeks to drive growth in
emerging markets like China, Malaysia, Thailand and Indonesia.
South Korea's leading confectionery maker Lotte has bought a
Shanghai-based chocolate company, as it seeks to expand in the
fast-growing Chinese market.
The world's largest chewing gum producer, the Wm Wrigley Jr
Company, has announced record sales in the first quarter, boosted
by new product launches and an increased worldwide presence.
Cadbury Schweppes, the world's biggest confectionery maker, signed
an agreement yesterday with Vietnam's leading food maker Kinh Do,
giving it access to the company's extensive distribution network.
Global confectionery giant, Hershey, has announced encouraging
sales and rising profits - thanks to a strong focus on product
innovation and seasonal marketing in the last year.
Cadbury Schweppes has been forced to improve cleaning processes at
its Herefordshire factory after last month's recall of
Salmonella-contaminated products.
Leading food manufacturer Kraft has paid £575m (€829.6m) for United
Biscuit's southern European snack business. The deal was signed off
over the weekend, said British daily The Financial Times.
Cadbury Schweppes has come under renewed criticism following a
regulatory finding that it did not adhere to EU safety measures at
its Herefordshire plant, where salmonella was discovered earlier
this year.
Chocolate has a nice feeling to it - tasty, fun, luxurious and
slightly sinful. This is comfort food, accessible to all and
epitomised in the recent film, Charlie and the Chocolate Factory.
Nestle doesn't expect raw material prices to rise further this
year, despite a recent FAO report that forecasts an increase of
over 2 per cent in the world food import bill in 2006.
Cadbury Schweppes says that it is unlikely to be able to deliver
margin growth within the company's goal ranges for 2006, though US
gum sales have been strong.
Nestle, the world's biggest foodmaker, has agreed to buy the Uncle
Tobys cereal, soups and nutritious snacks brand from Burns Philp
for A$890 million (€523.2m) to expand its range of healthier foods
in Australia.
The board of directors at Wrigley has declared a regular dividend
of $0.256 on each share of common stock and each share of class B
common stock for the three-month period beginning 1 August 2006.
Hershey's expansion of its health and nutrition initiative
underlines the extent to which chocolate makers are keen to tap
into consumer health concerns.
The opinion of an advocate-general of the European Court of Justice
on UK anti-tax avoidance rules could benefit multinationals such as
confectioner Cadbury Schweppes.
Swiss food giant Nestlé has announced a first-quarter sales rise of
14.1 per cent to CHF22.8bn (€14.5bn), beating analyst expectations
and reconfirming its full-year target of a five to six per cent
growth rate.
Iconic chocolate and snacks brand Hershey has announced
disappointing sales figures, but posted a seven per cent rise in
quarterly profit as the company works on product innovation and
cost minimisation.
Kraft Foods has recorded stable first quarter results, masking
falling operating income with a favourable tax settlement and
raising prices to combat spiralling production costs.
New products and seasonal success may have given Hershey increased
2005 sales, but income for the confectionery colossus remains
blighted by the cost of reorganisation.
Prices for raw materials and energy are forecast to rise by around
five to 10 per cent this year, but Nestlé believes cost cuts will
balance the equation out, the company's chief executive said
yesterday.
Italian confectioner Ferrero has won its battle against Chinese
counterfeiters who have been producing copycat versions of its
products for the Asian market.
The Romanian Competition Council has fined Wrigley Romania and 26
connected companies €5.5 million for introducing minimum prices on
its products, which was seen to be a measure that is in violation
of EU law.
Cadbury Schweppes has announced it plans to sell its European
beverages arm for £1.2bn to a private equity consortium led by Lion
Capital and Blackstone.
Nestlé says it will embrace moves by hard discounters to sell more
branded products as part of its plan to recover from difficult
times on Europe's food and drink market.
Food giant Kraft, which saw earnings drop 13.5 percent in third
quarter earnings yesterday, moved a step closer to being spun off
from parent Altria after a $280 billion government lawsuit against
the tobacco industry fell through.
The level of antioxidants commonly available in chocolate is
directly linked to the level of natural cocoa contained in the
product, says a new study from the US.
On the back of growing consumer interest in healthy eating, leading
US food maker Kraft Foods is focusing on its increasingly
successful health and wellness segment, announcing plans to further
limit products advertised to children...
After months of secrecy and whisperings, Cadbury Schweppes has
finally confirmed that it is looking to dump its European soft
drinks arm for a greater focus on confectionery.
Cadbury Schweppes still looks likely to ditch its European soft
drinks arm for the right price, yet it is difficult to find a buyer
for a stumbling business with little growth prospects.
