Orkla Buys CBD Specialty Fudge and Toffee Maker in UK
Oslo, Norway-headquartered Orkla Food Ingredients has sealed a deal to acquire British fudge and toffee manufacturer Confection by Design Ltd (CBD) through its NIC Enterprises Limited subsidiary at an undisclosed price.
The Harrogate, North Yorkshire, England-based company supplies fudge and toffee to ice cream manufacturers, bakeries and confectioners. Approximately two thirds of its portfolio is distributed by Orkla’s United Kingdom subsidiary Orchard Valley Foods, with about 80% of total sales generated in the UK.
Orkla Food Ingredients holds a strong position as a supplier of bakery and ice cream ingredients and accessories in the Nordic region and other countries in Europe. In Britain it has built up a solid position through NIC UK, Orchard Valley Foods and County Confectionery.
“The purchase of Confection by Design is strategically right and will complement Orkla’s position as a supplier of inclusions and accessories to the bakery, chocolate and ice cream market,” said Tor Osmundsen, chief executive officer of the NIC Group.
Presently employing 35 people, Confection by Design is a privately owned business established in 1988. The company generated turnover of £5.7 million in the financial year ending June 30, 2019. Its figures will be consolidated into Orkla’s financial statements as of July 1.
The sale of food products accounted for 39% of the Orkla Group’s NOK 16 billion operating revenues in 2018. Among market leading branded products offered to consumers in the Nordics, Baltics, Central Europe and India are frozen pizzas, ready-to-eat meals, soups and sauces. Sales are primarily made through the grocery retail trade, while other points of distribution include the convenience store and petrol station sectors.