Confectionery market gets slimmer, but Haribo’s UK business adds on pounds

THE public debate about obesity is being blamed for thin expectations about the future growth of the UK confectionery market, but last year remained a happy world at Haribo.

Production is due to start at its £35m Normanton factory this summer once building work, which is visible from the M62 motorway, is completed. This will result in fewer imports from other Haribo Group factories.

Without it, pre-tax profits rose at its UK business, Dunhills (Pontefract) – which also includes the soft chew brand Maoam – by 31% to £24.8m in 2014 on the back of an 8% increase in revenues to £158.2m.

This was achieved despite the confectionery market shrinking last year, in both sales values and volumes.

Herwig Vennekens, Haribo UK’s managing director, is confident the business can continue to grow “in these difficult market conditions”.

He said: “Looking ahead we expect confectionery consumption in the UK to remain stagnant at the very best. The public debate about the issue of obesity and the attention given by the media to sugar in this context is expected to impact negatively on the growth potential of sugar confectionery.

“Haribo and Maoam have always been positioned as a treat and are being offered in a wide range of pack sizes and portion controlled formats to enable consumers to enjoy our products responsibly.

“Continuous investment in our brands, competitive promotional support and new product launches should enable Haribo and Maoam to continue their growth in the UK market in 2015.”

The business employs around 600 people nearly 300 jobs expected to be created following the investment in the West Yorkshire factory.