Cadbury said today (16 December) that its North American sales had slowed due to destocking from some retailers but said the business was still enjoying “mid-single-digit” sales growth.
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The UK confectioner, which earlier today predicted “strong profit growth” and reaffirmed its earnings and sales targets for its financial year, said sales in North America had “softened” due to customers scaling back stock levels amid the economic downturn.
“North America is very much a candy and gum market for us. While people are still very much chewing gum, there has been an increase in customer destocking,” a Cadbury spokesperson told just-food.
“The North American market has been enjoying double-digit growth for years. It has slowed slightly, it’s not as if it has completely fallen off.”
Demand for premium chocolate continues to grow in the US, with sales of gourmet chocolate expected to be up 9% on 2007, according to market researchers Packaged Facts.
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By GlobalDataEarlier this year, Cadbury launched organic brand Green & Black’s into the US to capitalise on demand for upmarket chocolate. However, the spokesperson hinted Cadbury’s was constrained from boosting its presence in the segment due to its distribution deal with Hershey.
“A lot of our chocolate is sold through Hershey so there are limits to what we can do,” the spokesperson said, adding that Cadbury’s assault on the US premium chocolate category would stay centred on Green & Black’s.
