UK sales at Haribo jumped 4% to £172m in 2017 on the back of strong international growth, despite “challenging” conditions in the confectionery industry.
Dunhills (Pontefract) PLC, the company behind the Haribo brand in the UK, grew sales despite a 1.2% decline in the wider consumption of confectionery last year.
Turnover at Haribo grew £6.7m in the year ending 31 December 2017, while profit before tax increased by £2.2m to £21.2m.
A £5.1m increase in overseas sales propelled the growth.
Dunhills’ Haribo and Maoam brands both “outperformed” competitors to maintain their market leadership, according to the report.
Domestic sales increased by £1.6m compared to 2016, pushed by strong performances by Tangfastics, Strawbs and Goldbears products. However the company added that this was offset by a decline in themed product lines. Sales of Maoam products increased by 6.4% over the year, as it overtook Skittles to become the leader in the soft and chewy sweets market, the strategic report said.
The decline of the pound along with falling consumption in the UK made it a difficult year for the sector, said the company.
“2017 continued to be a challenging year for the UK confectionery industry - consumption levels have decreased and there was also a decline in Pound Sterling versus the Euro,” said a Haribo spokeswoman.
“Despite this, Haribo and Maoam maintained their market-leading positions, key products experienced growth and export sales increased. We attribute this success to delivering high quality products in the right bag sizes and for a variety of usage occasions.
“We expect challenges ahead but believe that we are in a good position to face these head-on. We have the capacity to grow our overseas markets, we have a strong brand, new variants such as Fruitilicious with real growth potential in this market, we believe in our products and in our responsible approach to delivering more choice for our consumers.”