The acquisition follows a 5% equity stake taken in the organic chocolate company by Cadbury in 2002 and will give it a firm foothold in the growing luxury chocolate category, while allowing Green & Black's to extend its international growth.
Cadbury has all but dropped out of the luxury chocolate category, in which UK volume sales have grown by 21% since 1999, as its Roses and Milk Tray brands have suffered from price and perception erosion.
Green & Black's, conversely, reported sales growth up 63% to £13.5m for 2003-04 in a confectionery market that only grew by 2.1%.
Green & Black's has denied that any announcement of its sale to Cadbury is imminent. However, sources close to both companies have confirmed to Marketing that the deal is in its final stages.
It is understood that the companies want to handle the announcement carefully.
Green & Black's Maya Gold bar was the first Fairtrade-accredited product, and while it now stresses its premium credentials over its organic roots, criticism of its sale is anticipated.
- Moving up, or selling out? page 18.
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