The confectionery and soft drinks industries are highly competitive: our brands compete with those of many other multi-national, national and regional companies and private label suppliers in various markets. We compete actively in terms of quality, taste and price of products and seek to develop and enhance brand recognition through the introduction of new products and packaging, and extensive advertising and promotional programmes.
We are the world's leading confectionery group by sales value (see table below). Chocolate confectionery is primarily a branded market. Four groups account for around 44% of the world market, each with market share built on regional strengths. Our 7.8% chocolate share is built on strong positions in the UK, Ireland, Australia, New Zealand and India. The sugar confectionery market is significantly more fragmented, with a greater presence of local and regional brands and private label products, but our 6.9% share makes us global market leader. Gum is also a branded market. It is more global in nature with brands and products more consistent across geographies. Two groups account for approximately 62% of the global total: our number two position is built on strong market shares in the Americas, parts of Continental Europe, Japan and Thailand.
| 2004 $ Share |
Total |
Chocolate |
Sugar |
Gum |
| Cadbury Schweppes |
10.0% |
7.8% |
6.9% |
26.0% |
| Mars |
9.2% |
15.2% |
3.1% |
0.2% |
| Nestlé |
7.8% |
12.3% |
3.6% |
– |
| Hershey |
5.8% |
8.4% |
3.1% |
1.7% |
| Kraft |
4.9% |
7.3% |
2.7% |
0.5% |
| Wrigley |
4.9% |
– |
0.3% |
36.0% |
Source: Euromonitor 2004
The soft drinks industry includes a number of brand owners which act as licensors of branded products. Through Dr Pepper/Seven Up, we are the third largest carbonated soft drinks group in the US by sales volume. In Australia, we are the second largest beverages company and the fourth largest supplier of edible products to the grocery trade.
