Industry Analysis & Industry Trends
The Confectionery Wholesaling industry includes merchant wholesalers that distribute confectionery to a range of retailers including supermarkets, convenience stores and other retailers. Despite volatile sugar and cocoa prices, the industry has performed well over the five years through 2016-17. The industry is characterised by intense internal competition, particularly between the key players such as Mondelez and Mars. While both firms predominantly manufacture confectionery, they also have vertically integrated wholesale divisions. Inflated corporate budgets have also helped to generate opportunities by allowing operators to invest in product innovation and use aggressive marketing to track and embrace new consumer trends... purchase to read more
Industry Report - Industry Investment Chapter
The Confectionery Wholesaling industry displays a high level of capital intensity. In 2016-17, IBISWorld estimates that for every £1.00 spent on capital, £1.55 is spent on wages. Although wholesalers increasingly rely on technological automated inventory management solutions, labour still plays a pivotal role. Human labour is required for inventory management, sales, operating machinery and marketing functions. These roles involve marketing products and taking, preparing, checking and shipping orders to customers. However, labour costs remain a small expense for the industry compared to industries in most other sectors. Wages are anticipated to account for 2.8% of industry revenue in the current year, while the average wage is estimated to be just over £33,500.
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