Mars Norge has terminated its distribution agreement with Orkla Confectionery & Snacks Norge. As of 1 January 2018 it will take over the sale of Extra and Hubba Bubba chewing gum itself.
Nidar and Orkla have been responsible for sales of the Wrigley products in Norway since 1988.
"This distribution agreement has been important because it has given us access to the chewing gum market, and the possibility of being a full-range supplier in the confectionery category. However, we've been aware that Mars and Wrigley merged their organisations last year and that this could affect our agreement," says Jeanette Hauan Fladby, CEO of Orkla Confectionery & Snacks Norge. She also explains that the merger is Mars Norge's main reason for terminating the agreement.
The almost 30-year partnership has been a win-win situation for both parties.
"Through our collaboration Wrigley has had access to one of Norway's biggest and best sales organisations, and we have been a full-range supplier in the confectionery category. This cooperation has yielded solid results. Since we joined forces in 1988, our value market share of the chewing gum category has increased from 18 to 86 per cent," relates Ms Hauan Fladby.
"We will now spend the next few weeks looking at what this means in detail for Orkla Confectionery & Snacks Norge and how we can best deal with the change. At the same time, we must be solution-oriented and explore the new opportunities that open up when we exit this agreement," she says.
Orkla is a leading supplier of branded consumer goods and concept solutions to the grocery, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and its head office is in Oslo. In 2016, the Group had a turnover of approximately NOK 38 billion, and 18,000 employees at year end.
Oslo, 21 June 2017
Orkla Confectionery & Snacks
Director Corporate Communication
Tel.: +47 915 39 513