The world’s largest chewing gum company Wrigley has said it is looking to expand its candy operations as it looks to spur growth in the relatively flat gums market.
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“We’re evaluating different options there,” said William Wrigley Jr, president and CEO, during the company’s annual meeting on Wednesday.
The company said it had considered buying Nabisco’s gum and mint business when it was for sale last year. It did not pursue a deal however, because of concerns about antitrust issues. The business was eventually bought by Hershey Foods Corp.
Wrigley has also recently entered the healthcare business with the launch of a new antacid gum, which they hope will boost growth. Surpass antacid gum aims to aid against heartburn.
Wrigley’s move into the healthcare and candy business has taken most industry watchers by surprise. Both businesses are a risky investment for Wrigley as they take on competitors with more expertise. In healthcare, the company must also account for the costs of meeting regulatory requirements. Wrigley’s hope that its brand name will give it an advantage in both markets with consumers and competitors.
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By GlobalDataThe company is also considering raising prices for its products in the USA.
