Forbes  Apr 9  Comment 
The Wrigley Company, an American chewing gum manufacturer, has broken ground for a $63 million manufacturing plant in an effort to double its production capacity and meet up with increased demand in its African markets.
New York Times  Apr 6  Comment 
The Cubs opened the 2015 baseball season with outsize expectations to emerge from five straight fifth-place finishes and challenge the St. Louis Cardinals in the National League Central.
guardian.co.uk  Feb 24  Comment 
UK’s biggest housebuilder brings forward dividend as help-to-buy scheme propels revenues to £2.6bn Persimmon, the UK’s biggest housebuilder, has brought forward its dividend payment after reporting a 44% jump in annual profits. The company...
New York Times  Feb 20  Comment 
The Chicago Cubs can proceed with a construction project at Wrigley Field, a federal judge ruled Thursday, but the project’s future remains uncertain as a lawsuit continues by property owners.
CANOE.ca  Feb 4  Comment 
Wrigley Canada announced plans Tuesday to close its Toronto gum factory next year, killing nearly 400 jobs.
Wall Street Journal  Jan 21  Comment 
Owners of two private businesses where fans watch Cubs baseball games from across the street sued the team and its owners in federal court, claiming plans to erect new signs at Wrigley Field would hurt them.
Forbes  Jan 17  Comment 
The Chicago Cubs may have had a notable offseason after picking up pitcher Jon Lester and hiring Joe Maddon as new head coach, but the team’s plan to refurbish its beloved outfield bleachers has taken on heavy delays. With backlogged underground...
Forbes  Oct 23  Comment 
The Foo Fighters have announced the first date for their 2015 tour, at Chicago’s Wrigley Field. The August 29 show isn’t likely to be the first actual date of the Sonic Highways World Tour, but has been the first date announced. Chicago has...
BusinessWeek  Aug 12  Comment 
The Ricketts family will gather donors at the home of the Chicago Cubs to help elect Pete Ricketts governor of Nebraska
MarketWatch  Jul 24  Comment 
Chewing gum makers make big promises, but analysts say sales will still decline.




 

In 2008, Wrigley was acquired by Mars in partnership with Warren Buffett for $23 billion.[1]

The WM Wrigley Jr. Company (NYSE: WWY) is the world's leading chewing gum manufacturer Atop the chewing gum industry, Wrigley is looking to opportunistically expand products beyond its core chewing gum franchise and source additional growth from its already strong international division. It also faces particular challenges from main competitor Cadburyhorses(CSG), the number two chewing gum player.

While Wrigley earns approximately 90% of revenue from chewing gum, it has expanded into other confectionery products such as breath mints, hard candy and Chocolate. The company extended into non-gum confections by acquiring several brands from Kraft Foods (KFT), including Life Savers, Altoids, and Creme Savers. Wrigley also bought majority control of a premium Russian Chocolate company, A. Korkunov, in order to further diversify outside of chewing gum.

A large portion of revenue growth comes from outside North America, which accounts for only one-third of total sales. Key regions of focus include China, which remains largely untapped for chewing gum, and the U.K., a mature market where Wrigley's 99% market share eroded to 85% in a matter of months due to Cadbury's introduction of its Trident gum brand. Asia - especially China - remains a potentially lucrative market due to the large population size and relatively untapped customer base.

Company Overview

Wrigley was founded in 1891, when it introduced its first two brands of chewing gum: Juicy Fruit and Wrigley's Spearmint, both of which are still sold today. In addition to the original brands, Wrigley owns and sells chewing gum under the following brand names: Doublemint, BigRed, Boomer, Winterfresh, Extra, Orbit, Excel, Hubba Bubba, 5, and others.

Wrigley expanded into other confectionery products in 2004 by acquiring several brands from Kraft Foods (KFT), including Life Savers, Altoids, and Creme Savers. In February 2007, Wrigley acquired an 80% interest in the Russian premium Chocolate company A. Korkunov in order to further diversify its confectionery production outside of chewing gum.

Competition

One major difference between Wrigley and Cadbury Schweppes is their product mix of sugar sweetened and sugar free gum; an overwhelming 90% of Cadbury Schweppes' chewing gum is sugar free, while only 77% of Wrigley's chewing gum is sugar free. This gives Cadbury Schweppes an advantage as the current consumer prefers sugar free gum. Currently, Cadbury Schweppes is taking market share away from Wrigley, both domestically and internationally (notably in the U.K.). Cadbury Schweppes is a larger company than Wrigley counting revenue from beverages and non-gum confectionery products, potentially giving them scale advantages in purchasing power, marketing and other resources.

References

  1. Mars Acquisition of Wrigely: 3rd Biggest Deal of 2008. CNBC (April 28, 2008).
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki