Cadbury Schweppes makes offer on Japanese candy market
functional candy company Sansei Foods, in a bid to expand its
business further in the country's lucrative
The European confectionery giant already boasts a significant presence in Japan, where last year it claims to have held number two position and an 18 per cent share of the country's gum market with the products Recaldent and Clorets. This major boost to its business in the country followed Cadbury's acquisition of US-based confectionery group Adams in 2002. According to Todd Stitzer, Cadbury Schweppes chief executive officer, the firm's proposed acquisition of Sansei would "further strengthen our presence in Japan, where we have gained significant gum market share since the Adams acquisition." Sansei sells sugarfree functional candy in Japan under the brands Teicalo and Xylicrystal. Cadbury Schweppes claims Sansei held a 4 per cent share of the £1bn (€1.5bn) Japanese candy market in 2006. In the bid to grow within the Japanese confectionery market, Stitzer said: "Sansei's sugarfree high functionality products are complementary to Halls, and we see strong opportunities to develop them further in the Japanese market and potentially elsewhere." The company has put in a bid for all the outstanding shares of Sansei, which it claims are worth approximately ¥13.75bn (€85m). The offer, it says, is due to close on July 19, and "will lapse unless shares representing at least 66.67 per cent of Sansei's issued share capital are tendered". Its latest move in Japan follows acquisitions in the gum market in Turkey, and of Romania's second largest confectionery company, as well as various restructuring plans announced this year in order to reduce its cost base. Cabury's, which claims to be the world's largest confectionery company, recently announced its plans to separate its confectionery and Americas Beverage businesses. The firm also today announced a major restructuring revamp, in a bid to simplify its business in and focus on bigger value-creating initiatives. The firm also stated earlier this month that it was selling non-core businesses in Australia, Italy and Canada to raise over £45m (€66.4m) towards its 2007 disposal target.