Private-Label Candy and Cookies: Consolidating by Cherry-Picking

However, according to Sebastiaan Schreijen, Senior Analyst – Consumer Foods, "there is a distinct difference between these two categories and ice cream or soft drinks, for example. The broad range of products and therefore production techniques makes it harder to realise economies of scale in candy and cookies. So consolidation in these categories is less about asset rationalisation, and more about synergies in distribution and new product development." Rather than focusing on scale alone, private label consolidators in confectionery and biscuits should be going after specialists in related production technologies.