Scandinavia: Orkla ASA buys candy company Bubs Godis

Oslo / NO. (ok) Orkla Confectionery + Snacks, part of Norway’s Orkla ASA, has entered into an agreement to acquire 100 per cent of the shares in Bubs Godis AB, a Nordic confectionery company in Jönköping, Sweden. Bubs Godis is a fast growing company with a strong position in sugar confectionery in the Swedish confectionery market, and also has sales to other Nordic countries. Bubs is behind many iconic small candy favourites that are sold both in bulk and in bags. Carrier power is central to the company’s business, and the majority of the portfolio consists of vegan products.

«This acquisition fits well with our strategy to strengthen our positions in the Nordic markets. Small food is a growing category and also in bulk consumers prefer well-known brands like Bubs,» says Ingvill T. Berg, head of Orkla Confectionery + Snacks.

The purchase of Bubs will take place through Orkla Confectionery + Snacks Sweden, which has strong positions in the snack and biscuit categories.

«Bubs is a solid company and a good brand that will complement our other portfolio and give us a solid base for further growth,» says Patrick Axzell, CEO of Orkla Confectionery + Snacks Sweden.

The sellers are members of the Lindström family, who established the company in 1992. In addition, CEO Niclas Arnelin has a small shareholding which is also part of the sale.

«We are happy to hand over the baton to Orkla and have confidence that they will develop the company to the next level,» says Ulrik Lindström, on behalf of the owner family.

Bubs has had an average annual sales growth of 10 per cent since 2012/2013 and had in 2021/2022 (financial year ending 30 June 2022) a turnover of SEK 211 million.

«To continue this growth, we will build on the company’s strategy while exploiting the benefits of becoming part of Orkla. Also in the area of distribution, we see opportunities to become a larger company,» says Patrick Axzell. Bubs will continue to operate as a subsidiary of Orkla Confectionery + Snacks Sweden and current CEO Niclas Arnelin will continue in the company. The sale is expected to be completed during the first quarter of 2023.