Chewing Gum Consultant

Professional Chewing gum industry meeting point

FERRERO & EUROBASE 23/02/2016

Filed under: Market & Fairs — Joan Mestres @ 11:12 AM
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This has been one of the most intresting moves in the chewing gum industry for some years.

The Italian giant “Ferrero” (probably you know Nutella, Kinder, Ferrero Rocher or TicTac) acquired the Belgian gum base producer “Eurobase”.

This is a step indicating the interest of the italian company in the chewing gum industry. There have been rumors for some years about this issue (e.g. interest of Ferrero on acquiring Perfetti – the italian chewing gum company) but this is the first real action that can be confirmed. I do not know what will come next but I am sure that we can expect more news in the near future.

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ISM + ProSweets 2016 18/02/2016

Filed under: Market & Fairs — Joan Mestres @ 12:22 PM
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I’m back from ISM, in Cologne (Germany), where I had the chance to meet again many friends and colleagues from this exciting chewing gum world. During next days I will be posting about a few things that I found there. I must say (and I think ti is not the first time that I mention this) that I have the feeling that the fair become smaller and smaller. Some companies that used to exhibit there are not coming anymore. Now I met some of the representatives of those companies coming¬†only as visitors. I am convinced that ISM is still a very valuable meeting point and I see many booths that are always busy receiving guests, but it is clear that some companies, when evaluate the pros and cons of setting up a stand and exhibit their products, seem to decide for coming to the show to see the novelties and they arrenge the meetings with their customers or suppliers in different areas of the Fair,¬†instead of the expense of exhibiting there with their own booth.

I must say as well, that novelties in gum products are very limited and maybe the most important news on the sector are not related to a specific product but to a recent take-over. But I will write about this another day…

ProSweets, however, is a Fair that seems to become stronger. Compared to the first years of this Fair for the confectionery industry suppliers (mainly machinery, but also ingredients and packaging materials) that runs parallel to ISM, I see more and more exhibitors and visitors. I do not know if it will reach the importance of Interpack, which still is the #1 fair for the machinery suppliers, but for sure this is an exhibition to be taken into account.

 

 

Fiesta – Spanish company for sale 28/01/2015

Filed under: Market & Fairs — Joan Mestres @ 2:06 PM
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Sad news are that the Spanish company “FIESTA” is for sale. After some years of financial difficulties, the company, located near Madrid, has a tag price of around 20 Million Euros.

The same is expected to take place in July and will be organized in two parts: The sale and distribution of sweets, and the factory itself. The first business has an estimated value of 12 M Eur but the initial sale price will be 5 times the EBITDA for 2015. The company estimates that the EBITDA for 2014 will be 1,2 M Eur, so if the forecast for 2015 is the same, then the value will be 6 M Eur (half of the estimated value of the business). Regarding the building itself, it has a value of 8 M Eur but it will come out for sale for 6,7 M Eur. 50 companies have already shown interest. The company has now 140 employees and has suffered a deep restructuration process during last years and months.

You can read more about this in this link (only in Spanish) from Alimarket, who provides the info mentioned above.

The company is well-known in the Spanish market for their lollipop with a bubble gum center named “Kojak”. It has also an active export activity.

 

 

Chocolat Frey in North America. Sweet works/Oak Leaf 24/04/2014

Filed under: Market & Fairs — Joan Mestres @ 12:01 PM
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The swiss company Chocolat Frey (I posted about it in the past) has recently acquired Sweetworks. I also posted about this American company which owns well-known brands such as Oak Leaf (located in Canada) and Niagara Chocolates.

The companies have chocolate production and this acquisition will be a direct way for the Swiss to enter the US market. However here we focus on gum, and Chocolat Frey is specialist in sugar free gum production (with own brands and for private label), while Oak Leaf is strong in gum balls (sugared). They are then in strong contrast with each other. It will be interesting to see how this synergy evolves in the future. Will Chocolat Frey coated pellets enter the US market in a stronger way and compete with the giants Wrigley and Mondelez? Are we going to see more sugar free gum balls? …