Sweet times for Tangerine
TANGERINE Confectionery, the independent sweet and popcorn maker, is predicting further strong growth despite the tough economic backdrop.
The Lancashire-based company has seen sales rocket from £45m to £160m in the last three years thanks to an aggressive buy and build strategy by the management team backed by Close Brothers Growth Capital.
Tangerine is now the fourth-largest confectionery maker in the UK, behind Cadbury, Mars and Nestle.
It is a major supplier to all the major grocery multiples, making an extensive range of sugar confectionery, including wine gums, midget gems and jelly babies for Tesco, Sainsbury’s, Asda, Morrisons, Co-op, Waitrose and Marks & Spencer.
Its private label business accounts for about half of group turnover.
Chairman Steven Joseph told TheBusinessDesk that after two large acquisitions in 2006 and 2008 the next phase of growth would be organic.
He said:”We’ve enough on our plate with what we have got at the moment. Trading is OK and we have done what we hoped we’d do over the last three years, maybe a little more.
“Our demand is relatively stable – most purchases are for less than £1 and when times are tough people tend to treat themselves”
Despite hikes in commodity and raw material prices last year – which have eased this year – Tangerine’s EBITDA rose 50% to around £8m last year, and to grow by a similar level in 2009.
“We’re not counting our chickens, of course, there’s a lot of work to do and more mileage to be had out of the businesses we have here.”
When Mr Joseph and the team bought what was then called Tom’s Confectionery in 2006 the business had around 450 staff and an annual turnover of £45m.
The first acquisition came in August 2006 with the £10m swoop for Blackpool-based Burtons Confectionery, which added liquorice all-sorts and dolly mixtures to the product portfolio.
This took turnover to £60m, but more significant strides were made in last year with the near £60m acquisition of the Monkhill Confectionery Company from Cadbury Schweppes.
This brought brands including Barratt Sherbet Fountains and Butterkist popcorn to Tangerine.
As a result turnover last year was boosted by £85m to £145m and will be £160m this year, Mr Joseph said.
Tangerine now employs around 1,500 people nationally, including 400 at its Blackpool base. It also has sites in Liverpool and 4 in Yorkshire, at York, Cleckheaton and two factories in Pontefract, as well as a plant at Poole in Dorset.
