Somewhat overshadowed by yesterday's news that Cadbury Schweppes was to buy the Adams sugar confectionery business in the US was the announcement by Cadbury's Trebor Bassett unit that it was to form a joint venture with the Israeli company Carmit Caramel Industries.
Speaking to a members of the press in Israel, the company said that the deal with Carmit, already one of the leading confectionery companies in Israel, would allow Trebor Basset to tackle the domination of market leader Elite, which accounts for around 70 per cent of sales.
The Adams acquisition will turn Cadbury into the world's biggest confectionery group, with significant market shares in countries such as the US, Latin America, France and of course the UK. In Israel, its aim is to garner a 25 per cent share of the sugar confectionery market, and around 12 per cent of the chocolate market, by the end of 2004.
The British group will invest around $4.5 million (€4.4m) in the venture, according to press reports.
Rael Goodman, managing director of Carmit, told the press that there was great potential in the Israeli market, where consumption is currently around a fifth of worldwide average of 10 kg per capita.
But the arrival of Cadbury and its wide range of both chocolate and sugar confectionery products is expected to give a major boost to the stagnant market, and Cadbury estimates the market could rise by as much as 10 per cent over the next two years.
The British group said it had no plans at present to produce its brands in Israel itself, but added that the deal with Carmit could make this a possibility at a later date.