Bubs manufacturer wants to buy Dutch candy maker as Swedish candy goes viral

Swedish company Orkla Snacks wants to acquire The European Candy Group. By acquiring this Dutch candy manufacturer, Orkla will gain additional production capacity, now that demand for the Swedish candy brand Bubs is skyrocketing thanks to TikTok.

More factories needed

Orkla has notified the Netherlands Authority for Consumers and Markets (ACM) that it intends to acquire full control of The European Candy Group, according to Nu.nl. The European Candy Group produces items such as wine gums, English licorice, TumTums, and marshmallows, and supplies many private-label products to supermarkets. The company operates four production facilities, three of which are in the Netherlands and one in Germany.

For Orkla, the acquisition is primarily about capacity. Its subsidiary brand, Bubs, has grown significantly in popularity in recent years, thanks in part to social media. The Swedish candy has become such a sensation that even an expansion of the existing factory is not enough to meet demand. The additional capacity in the Netherlands should also help the group serve new markets.

Orkla expects to finalize the acquisition in the fall, provided that the competition authorities give the green light. After all, the regulator must still assess whether the deal could potentially restrict competition in the candy market.