Mars has terminated its Norwegian Wrigley distribution agreement with Orkla Confectionery & Snacks Norge.
Nidar and Orkla have been responsible for sales of Wrigley products in Norway since 1988. From January next year Mars will take over the sale of Extra and Hubba Bubba chewing gum itself.
Orkla cited the merger between Mars and Wrigley as the main reason.
CEO of Orkla Confectionery & Snacks Norge, Jeanette Hauan Fladby, said: “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.”
Mars took full control of Wrigley having owned a majority stake in the gum maker since an initial acquisition in 2008.
Fladby claimed that since joining forces with Wrigley in 1988, Orkla increased its market share in the Norwegian chewing gum category from 18% to 86%.
She continued: “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.”
In 2015 Orkla signed an agreement with PepsiCo Nordic to become a major partner in the region for brands such as Tropicana, Quaker and Lay’s.
© FoodBev Media Ltd 2017