Sticky earnings period for Wrigley
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MARK AUSTIN THOMAS: When you hear the name Wrigley’s you think of gum. How about Altoids and Lifesavers? Wrigley’s bought those brands from Kraft last year. That purchase could gum up the works in their earnings statement when it’s announced today. Rachel Dornhelm reports.
RACHEL DORNHELM: It’s been a sticky situation since Wrigley bought the LifeSavers and Altoids brands from Kraft last year for $1.4 billion.
Food industry analyst Patrick Schumann says at the time it seemed like a great move for a company that already had a huge presence at candy counters around the world.
PATRICK SCHUMANN: To be able to put more products through that supply chain should be a positive, but it appears that to be able to get the sales is a much bigger task than we had given it credit for.
Schumann says he expects today’s earnings report will reflect continued growing pains from the acquisition.
Altoids has faced stiff competition in the breath mints market. While LifeSavers is suffering with the rest of the hard candy sector from high sugar prices and reduced consumer demand.
I’m Rachel Dornhelm for Marketplace.
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