Cadbury enters UK gum market

The world's second largest gum company, Cadbury Schweppes, is to introduce its most popular chewing gum brand into the UK market next year, putting the pressure on foremost competitor Wrigley and adding to larger firm domination in the sector.

Trident is set to enter the UK in the first half of next year and is expected to consolidate Cadbury's position in the confectionery market in the country.

The launch, which will set Cadbury against current market leader Wrigley who own the Juicy fruit and Doublemint brands, is part of a move by the confectioner to increase its foothold in the UK and is especially important given last week's gloomy trading update.

Affected by unseasonably hot summer weather and a product recall, Cadbury sales in the UK market fell by 14 per cent during the first six months of 2006. The company also noted last week that its share of the UK market fell by 1.1 per cent during the period.

Now the confectionery makers are hoping to use Trident, which is the world's second largest gum brand, to bolster sales in the region.

According to market researchers Leatherhead International, growth in the UK gum market has been fairly modest in the past year with sales of $600m (€471.8m) in 2005 - a 4.1 per cent increase since 2001.

However, given that around half of the UK population regularly chews gum and an estimated 1bn packs are sold each year, there remains huge potential in the market.

And Leatherhead forecast steady predicted growth of 4 per cent with sales this year estimated at $620m (€487.5m), increasing 4 per cent by 2010 to $725m (€570m)

Cadbury Trebor Bassett managing director Simon Baldry said: "We see massive potential in the UK for Trident. The UK is one of the top ten gum markets in the world but has seen little activity or innovation over the last few years."

He continued: "While confectionery markets around the world are seeing strong performances from gum, this has not been repeated in the UK and we firmly believe our entry can only be good news for this category."

Trident, which recorded 20 per cent growth last year, was acquired by the Cadbury in 2002 when it took over Adams confectionery business in a deal worth £2.7bn (€4bn).