Cadbury acquires Argentine confectionery brand

Cadbury Schweppes plc (London) has acquired the confectionery brand, Mantecol, in Argentina, for US$22.6 million (15.4 million pounds sterling) from the Argentine company Georgalos Hnos SAICA. The acquisition also includes associated equipment and technical expertise.

According to Cadbury, the acquisition strengthens the portfolio of Cadbury Stani, the company's existing business in Argentina, giving it three of the top ten selling Argentine confectionery brands—Beldent chewing gum, No 1, Mantecol, No 6 and Bazooka bubble gum, No 7.

Mantecol, a combination of sugar confectionery and peanut paste, is a unique product with no direct competition in the Argentine market. Originally similar to the Middle Eastern product Halva, but made from peanuts, Mantecol is sold both in plain format and chocolate coated. Launched in the 1940s and enjoyed both as a confection and as a dessert at mealtimes, Mantecol had an 11% share of the chocolate market in 1999.

"Mantecol adds another strong, profitable brand to our portfolio in Argentina," said John Brock, COO of Cadbury. "We see good potential for growth as Mantecol will benefit from our greater sales coverage."

Mantecol will be incorporated into Cadbury Stani with minimal additional costs and capital expenditure. The acquisition is subject to competition authority approval.

Edited by Scott Hegenbart