Cadbury Schweppes invests in gum confectionery
firm Senomyx in a bid to boost its gum business, the company
announced this week.
The partnership allows Senomyx to develop new flavours for Cadbury's gum business, an area the manufacturer is focusing on expanding. This comes two weeks after Cadbury announced its expansion into the Indian gum business with its Bubbaloo centre-filled gum brand. "Revenues from centre-filled gum are on track to double to around £200m in 2007 as Cadbury Schweppes drives the growth of this platform with new flavours, formats and further geographic expansion," the company said. Cadbury Schweppes currently holds a 26 per cent share of the world gum market with brands such as Trident, Dentyne, Hollywood and Dirol. In June this year, Cadbury purchases Turkish Intergum, one of the top five chewing gum manufacturers in the world, and launched the Trident brand in the UK in February. Euromonitor told ConfectioneryNews.com earlier this month that Cadbury's financial results indicate that its chewing gum brands are already showing potential for growth within the market, with the company's revenues in the segment surging by 10 per cent in 2006. The partnership with Senomyx is in a bid to help Cadbury develop its chewing gum business with new flavours. Senomyx said it will receive royalty payments from Cadbury's based on sales of products using the new flavour ingredients. Cadbury Schweppes will pay Senomyx research funding and specific payments upon certain achievements during the period. Cadbury claims to hold the second largest gum share in the world, and is number one in 18 of the top 50 gum markets.