Brynwood a possibility, says analyst
Marcia Mogelonsky, director of insight at Mintel, told us that private equity firm Brynwood Partners was a potential candidate for America’s number three chocolate player.
“Brynwood may want it in order to turn it around, like they did with DeMet. Or some other private equity might see it as a good turnaround.”
Brynwood Partners recently sold DeMet’s Candy for $221m to Turkish company Yildiz Holding, owner of Godiva and Ülker. In late December last year, Brynwood acquired snacks and cookies business SnackWell's from Mondelez. SnackWell’s then joined Brynwood’s joint venture business with Mondelez, the Back to Nature Foods Company.
Hershey and the Asian wild card
Mogelonsky added that US chocolate leader Hershey may be in the mood to acquire, but ruled any other US firm, including number two player Mars, out of contention.
“A wild card could be an Asian company looking for a deal and a seasonal product line. Valentine’s Day for example is the 4th or 5th most popular chocolate gifting holiday in China, and the company is also known for things like Mother's Day boxed chocolate, so it would give an Asian company a ready to go line of western style seasonal fare.”
‘Stuck in time’