A room full of sugar

There's no doubt that these are difficult times for the sugar confectionery sector. In a recent consumer survey conducted by the Food Standards Agency, 40% of parents were trying to reduce their children's consumption of sugar - that's much more than those trying to cut down on their kids' fat intake (26%) and over double the number reducing their children's salt consumption (18%).

But Tangerine Confectionery's Chris Marshall is quick to jump to sugar's defence. "I understand deeply about obesity, but no one's tackling the root of the problem," he says. He denies that kids guzzling sugary treats is the issue. Instead he believes the problem lies with them not getting enough exercise. "Kids should be playing outside - not on the playstation."

Marshall adds: "I've no sense of shame about being in the sugar confectionery industry. We've supplied people for hundreds of years with a bit of a treat. Sugar has never done anyone harm if taken in reasonable quantities."

He has a point. Tangerine's gums, jellies, toffees and hard boiled sweets are the type of treat your granny gave you as a nipper. They're hardly newcomers to the scene, so it's difficult to see why many people are keen to blame them for the current obesity crisis.

"The two major ingredients in our products are sugar and glucose. Why the heck should I be apologetic when one of the most successful brands is Lucozade [which contains glucose syrup] and is scientifically proven to replenish energy?" asks Marshall.

However, he concedes that a number of his company's products are being reformulated. His development team is working hard to make labels as clean as possible. Within two months, the company's objective is for all products to have natural colours and flavours, he says. This is to remove any association between sweets and hyperactivity and also because "natural goes down better with consumers than artificial"

He also proposes to remove added salt from all products within two years. Personal experience has taught him that it is possible to enjoy food without it: "Two years ago I used to cover everything in salt. Then my wife (who tries to keep me alive!) cut it from our diets and I haven't missed it."

Tangerine has already made headway with healthier products - all hydrogenated fats were removed four months ago. But Marshall draws the line at replacing sugar with a 'healthier alternative', because he wants his sweets to be affordable. "There may well be a market for reduced sugar and sugar-free confectionery, but the on-cost of sugar-free sweeteners is ridiculous," he claims.

And don't get him started on traffic light labelling. "I think it is misleading to put red on the front of every product - to be honest, it's insulting to the consumer."

Retro makes a comeback

Commercially, Tangerine must be doing things right as, despite rising concern over obesity and health, its sales are rising. "We're running above expectations, and that's a fact," says Marshall.

No doubt the recent boom in traditional sweets is not doing sales any harm, but he is not complacent. "The tide goes in and the tide goes out. At the moment there's been a significant retro movement. Humbugs and peardrops have suddenly regained themselves, but whether they'll sustain it or not, I don't know."

And just because these products have been around for years, doesn't mean that things run smoothly. "You'd pinch yourself if a day finished and something hadn't gone wrong," he says. "Complacency would be the death of the industry."

Marshall should know. He has over 50 years' experience in confectionery and, though the plan to retire is always in the back of his mind, he can't resist the lure of a good business proposition. "I'm one of those sad people who's always retiring - I've retired more times than Frank Sinatra!" Having recently handed over the business reigns to former Cadbury Trebor Bassett employee Steve Dodds, Marshall continues to take responsibility for marketing and purchasing at Tangerine as a non-executive chairman.

Expansion is a core part of Tangerine's strategy. "In 2007, capital investment will be three times more than 2006," Marshall announces triumphantly. But as for acquisitions, he remains tight-lipped. The firm bought the confectionery arm of Burton's Foods, which has a factory in Blackpool, last August. Marshall explains that part of the appeal of the business was it being a major producer of liquorice allsorts - an area where Tangerine wasn't represented. The deal increased Tangerine's turnover to £60M and its workforce to 630, with sites in Liverpool, Poole and headquarters in Blackpool.

But with Tangerine planning to turn itself into an £80M business within four years, Marshall has his eyes peeled for another deal. "We are an acquisitional company, so watch this space," he says. "Will it be Europe? I doubt it."

He is also bucking the recent trend within some parts of the confectionery sector to look abroad to reduce manufacturing costs. "If you ask me when we're moving production overseas, the answer is: we won't be," he says firmly. "I'm damned if I understand why we'd move production to the old eastern bloc. I'm not slagging off colleagues in other sectors, but it's not for us."

Because over 50% of the firm's total output is retailer own-label, "there's a need for inhouse flexibility to meet the requirements of retailers", he says. "It's a bit difficult if you manufacture in Poland."

A point of difference

Marshall claims the company's versatility is unusual in food manufacture. "We're a little bit different because we enjoy the diversity of batch production. It's just as important to us to supply Mr Patel in his corner shop, as it is to gain a better presence in forecourts."

He is proud of the own-label side of the business, which supplies some of the major retail players. "Some people are reluctant to take on own-label work, but we're not ashamed of our batch production factories. Own-label equals small runs, so batch production makes sense."

So does Tangerine's flexibility enable it to stay ahead of the competition? He describes Cadbury's Monkhill Confectionery business as Tangerine's biggest rival, but claims there is room for everyone. "Confectionery is more fun than other cut-throat industries. Competition is keen, but there's an understanding that we've all got a right to exist," he says. My immediate reaction to the Cadbury salmonella [issue] was sorrow - I wasn't rubbing my hands together." He adds: "Cadbury's marketing spend will always be bigger than ours, but that doesn't bother me, because the marketplace is pretty big."

Tangerine's approach to new product development is different to larger firms, which tend to spend longer on the process, says Marshall. "[For others] it can take anything from nine months to two years to see a product through from conception to birth," he claims. "But we go from start to finish in 20 weeks. And if we really want to burn a bit of midnight oil, it can be 12-14 weeks."

Marshall also points to the low levels of staff turnover within confectionery, which is a good reflection on the sector's record as a good employer. He cites the example of the enthusiasm shown by his product development manager: "I talk to Rachel Clorley and she literally bubbles with excitement," he says.

"I'm lucky to be in confectionery, because people genuinely get a kick out of sweets." FM