Magazines Archives - 2008 March
US gum-maker banks on Asia
US CANDY firm Wm Wrigley Jr Company is seeking to expand its presence in key Asian countries following the regions significant contribution to its overall financial performance.
The company that makes Juicy Fruit gum has set its sights on China, India and Russia, which have relatively low per capita gum consumption. In China, Wrigley is the largest confectionery company with more points of distribution than any other consumer packaged goods company in the country.
In India, Wrigley is improving its presence in traditional and growing modern trade channels. In Russia, there is significant opportunity to increase non-gum confections like Juicy Fruit chewy candies and A. Korkunov chocolates, the company said.
Officials declined to elaborate further on the planned expansion. Wrigley reported sales of
US$5.4 billion and a net operating profit of US$963 million in the year ended December 2007, 17% higher than 2006, on the contribution of sales in Europe, the Middle East, Africa and India (EMEAI), as well as the rest of Asia.
In EMEAI, the companys largest region, operating profit rose 21% to hit US$710 million while
that in the rest of Asia went up 15% to US$184 million. Net sales in the US were stagnant, resulting in a smaller profit increase of 3% in the region, the company noted.
To boost sales, Wrigley will release a new 15-stick envelope packaging in May and July in the
US for its Extra, Juicy Fruit, Doublemint, Big Red, Winterfresh, and Wrigleys Spearmint products.
This willl be coupled with significant flavour improvements across the brands.
Wrigley also distributes mints, hard and chewy candies, lollipops and chocolate. Other brands under the company include Altoids, Life Savers, Boomer, Pim Pom, Freedent, Hubba Bubba and Orbit.