Mars terminates Wrigley contract in Norway
Mars Norge has terminated its distribution agreement with Orkla Confectionery & Snacks Norge and will take over the sale of Extra and Hubba Bubba chewing gum itself.
The move will take effect from 1 January 2018.
Nidar and Orkla have been responsible for sales of the Wrigley products in Norway since 1988.
Jeanette Hauan Fladby, CEO of Orkla Confectionery & Snacks Norge, says, “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.”
She also explains that the merger is Mars Norge’s main reason for terminating the agreement.
“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,” adds Fladby. “This cooperation has yielded solid results. Since we joined forces in 1988, our value market share of the chewing gum category has increased from 18 to 86%.”
“We will now spend the next few weeks looking at what this means in detail for Orkla Confectionery & Snacks Norge and how we can best deal with the change. At the same time, we must be solution-oriented and explore the new opportunities that open up when we exit this agreement.”