A look at the Top 100 Candy Companies of 2013
While some markets have remained flat and several of the Global Top 100 Confectioneries have lower sales figures than seen in the past, 2012 still saw several mega-mergers and positive gains by quite a few candy companies.
One of the largest was a reverse acquisition by Cloetta AB, which climbed up the chart from the bottom quarter to the top quarter after merging with Leaf International. In 2011, Leaf had estimated sales of $745 million while Cloetta was listed at $153 million. Through this acquisition, under the Cloetta name, the Swedish confectioner with 2,600 employees and 11 factories, is expected to post around $840 million in sales. Bengt Baron, formerly of Leaf, remains as president and CEO.
Another large reverse acquisition was the merger of Ferrara Pan Candy Co. and Farley’s & Sathers Candy Co. to form the Ferrara Candy Co., chaired by Salvatore Ferrara II. Ferrara Pan had been ranked 40th in 2011, with sales originally estimated at$420, but subsequently revised to $324 million. Farley’s & Sathers was ranked 26th in 2011 with estimated sales of about $670 million. The merger is now estimated to generate about $1 billion in sales for 2012. The company’s new headquarters is in Oakbroak Terrace, a suburb of Chicago.
Then there’s the addition of Mondeléz International Inc, formerly known as Kraft Foods Inc. In separating its businesses into two public entities, Kraft created Mondeléz International Inc. to handle the global snack business, including confections and gum, while Kraft Foods Group Inc., was formed to focus on the North American grocery business. About 43% of Mondeléz International is confectionery and gum, bringing its estimated sales for 2012 to around $15.48 billion, of the new company’s estimated $36 million business.
Germany’s Rübezahl Schokoladen GmbH, which acquired Gubor two years ago and German-based Reutter Sweets in 2012, is new to the list, expecting to approach $200 million.
Mergers also brought about the inclusion of several other companies into the Global Top 100 that hadn’t appeared before, including DeMet’s Candy Co., of Stamford, Conn., with estimated sales of $130 million and Elvan Food Ind. Co., of Istanbul, Turkey, pegged at $100 million. Both Ragolds Sweet Sales GmbH, of Boizenberg, Germany, and Fannie May Confections Brands, of North Canton, Ohio, debuted with around $90 million each.
Finland’s Raisio saw a 27% increase and climbed up the rankings by about 50 spots and Turkey’s Solen Cikolata Gida San. Ve Tic climbed a dozen spaces up the ladder. Although it’s difficult to predict what 2013 will bring, one trend will definitely continue…more consolidation.
Source: Candy Industry