Cadbury has signalled plans to build a chewing gum production plant in Japan with the acquisition of a site that housed a former Panasonic facility.

The company has paid JPY900m (US$11.1m) for the site in the city of Kiyosu in southern Japan.

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Japan’s gum category has stagnated in recent years, like much of the country’s food sector. Gum sales by value were estimated to have fallen 1% in 2009 to JPY164bn, according to Euromonitor data. Sales volumes were said to have fallen 1.6%.

At the end of 2008, Lotte Confectionery accounted for 54.7% of Japan’s gum sales by value. Cadbury was second with 20% of sales and Meiji Seika Kaisha was third with 12.8%.

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