Cadbury Increases Stake in Subsidiary

UK-based confectionery giant Cadbury has upped its stake in its Turkish subsidiary Kent Gida Maddeleri to 99.36% (financial details have not been disclosed). Turkey has established itself as one of Cadbury's most important emerging markets. For that reason, our downbeat near-term industry and economic view could pose a challenge. We foresee sector-wide confectionery sales dropping by 6.7% year-on-year in 2009 as economic weakness spooks consumers and eats away at non-essential food and drink spending (BMI has forecast Turkey's economy to contract by 5.7% in 2009 before ambling back up into positive territory in 2010).

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