Through its subsidiary NIC Enterprises, Orkla has agreed to purchase Confection by Design for an undisclosed sum.
Founded in 1988, Confection by Design produces fudge and toffee for ice cream manufacturers, bakeries and confectioners. The company, which employs 35 staff, recorded pre-tax profits of £1.6m on revenues of £5.7m for the financial year ending 30 June 2019.
Two-thirds of Confection by Design’s product range is already distributed by Orkla’s UK subsidiary Orchard Valley Foods.
Further strengthened its position
Orkla bought Orchard Valley Foods in 2017. It further strengthened its position in the UK market with the acquisition of Cornish speciality fudge and chocolate maker County Confectionery in October 2018.
Orkla had built up a “solid position” in the UK through its subsidiaries NIC UK, Orchard Valley Foods and County Confectionery, said Tor Osmundsen, chief executive of NIC Group.
“The purchase of Confection by Design is strategically right and will complement Orkla Food Ingredients’ position as a supplier of inclusions and accessories to the bakery, chocolate and ice cream market,” he added.
Confection by Design produces a range of honeycomb, toffee crisps and freeze-stable fudges, all of which can be either fat or chocolate-coated for barrier protection. It also recently launched a range of coloured sugar pearls.
Four-fifths of the company’s sales are in the UK, with 20% going to export. Key customers include Mondelēz-owned Green & Black’s, Kerry Foods, Nestlé, CSM and Hotel Chocolat.
Confection by Design will be consolidated into Orkla’s financial statements as of 1 July 2019.