Growth Opportunities
In confectionery, Cadbury has the largest and most broadly spread emerging markets business amongst its peers. In 2008 these markets accounted for over one-third of our confectionery revenue and 60% of our revenue growth. In the last five years, Cadbury’s emerging markets confectionery businesses grew on average by 12% per annum on a like-for-like basis. Emerging markets will continue to be a key point of focus for the Group due to the expectation of higher product growth rates than the developed markets as living standards continue to rise in emerging markets.
Gum is the fastest growing category within confectionery with a 7% p.a. value growth rate over the last four years. Gum accounts for 33% of Cadbury’s revenues, a relatively high ratio compared to gum’s share in the global market of 14%.
‘Better-for-you’ confectionery, including products such as fortified/functional confectionery, and reduced-sugar confectionery grew by 11% per annum from 2002–2007, compared with 5% growth for confectionery as a whole. Cadbury’s ‘wellness’ sub-category accounts for around 30% of Cadbury revenue which compares favourably with 17% for the market. ‘Wellness’ is a focus for management as increased consumer attention on diet, health and fitness is expected to drive above average growth for ‘wellness’ products. Consumer choice is also one of the key elements of our approach to responsible consumption led by our innovative ‘Be Treatwise’ programme.
© 2010 Cadbury plc