Orkla Confectionery & Snacks has agreed to purchase 100% of the shares in Nordic confectionery company, Bubs Godis AB, for an undisclosed amount.
In addition to Nordic countries, Bubs Godis enjoys a 'strong position' in the confectionery category in the Swedish sweets and candy market, according to Orkla.
The company offers 'pick-and-mix' options sold both in bulk as well as bags.
A majority of its portfolio comprises vegan products, and sustainability is a core focus area for the company.
Ingvill T Berg, CEO of Orkla Confectionery & Snacks, said, “This acquisition is well aligned with our strategy of strengthening our positions in the Nordic markets.
"Bulk confectionery is a growing category and even when it is sold as pick & mix, consumers prefer well-known brands like Bubs."
The acquisition of Bubs Godis will be carried out through Orkla Confectionery & Snacks Sverige.
The sellers are members of the Lindström family, who established the company in 1992, Orkla added.
Bubs Godis CEO, Niclas Arnelin, has a small ownership interest in the company that will be part of the transaction.
Upon completiion of the transaction, it will operate as a subsidiary of Orkla Confectionery & Snacks Sverige and Arnelin will remain with the company.
The deal is expected to close the first quarter of 2023.
'A Robust Company'
Patrick Axzell, CEO of Orkla Confectionery & Snacks Sverige, added, “Bubs is a robust company and a good brand that will complement the rest of our portfolio and give us a solid base for continued growth.
“To continue this growth journey, we will build further on the company’s strategy, while also exploiting the advantages of the company becoming part of Orkla. In distribution, among other things, we see opportunities to make good use of our becoming a bigger company.”
Bubs Godis has witnessed average annual sales growth of 10% since 2012/2013, and its turnover in the 2021/2022 financial year amounted to SEK 211 million (€19.1 million).
“We are glad to pass the baton to Orkla and are confident that they will further develop the company and take it to the next level,” added Ulrik Lindström on behalf of the Lindström family.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.