Orchard Valley Foods merger forms £36M ingredients firm

By Matt Atherton contact

- Last updated on GMT

Orchard Valley Foods and Candeco have joined to form Orchard Valley Foods Group
Orchard Valley Foods and Candeco have joined to form Orchard Valley Foods Group
Confectionery firm Orchard Valley Foods and Swedish ingredients firm Candeco Confektyr have merged to form the £36M (€40M) Orchard Valley Foods Group.

The merger will benefit customers by boosting new product development, packaging and food safety, Orchard Valley said. The deal was a “logical”​ move to exploit new opportunities in the confectionery ingredients market, it added.

Candeco, which manufactures decorations and inclusions for the ice cream, bakery and chocolate market, is owned by the Orkla group.

‘Continued market development’

Orchard Valley Foods Group md Cherry Blumberg said: “Candeco is a fantastic business renowned for its creativity in product development, delivering innovative solutions to meet customer needs, so it was a logical move to blend our two businesses to support continued market development.

“The combined resources under the Orchard Valley Foods Group brand will not only offer us new opportunities in the global market, but will give our customers unrivalled product expertise and first-class sourcing capabilities.”

The confectionery and decorations market continued to offer significant growth opportunities, Blumberg said. As manufacturers seek to add more visual appeal, texture and taste to products, both domestic and export market opportunities continue to grow, she added.

Significant growth opportunities

Candeco employs 35 workers and has a flagship manufacturing site in Malmö. It manufactures confectionery decorations, including hard-boiled caramel, sugar strands and soft-coated sweet products.

Orchard Valley Foods was formed in 2003 and employs 75 people. It is based in Worcestershire, and makes decorations and inclusions including fudge, biscuit pieces, toffee chips, mini marshmallows, chocolate pieces and sprinkles.

Meanwhile, Orchard Valley Foods was bought by Norwegian bakery ingredients manufacturer Orkla Food Ingredients for an undisclosed fee in March. Orkla agreed a deal to buy 85% of Orchard Valley Foods​, with an option to buy the remaining 15% of the business.

Orchard Valley Foods merger – at a glance

  • Merged with Candeco
  • New business known as Orchard Valley Foods Group
  • Candeco’s owner Orkla bought Orchard Valley Foods in March

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