Ülker group, after purchasing luxury chocolate firm Gordiva, has entered into partnership with Gumlink, the biggest chewing gum producer, in Denmark.

Ülker group, after signing a global purchase agreement with chocolate firm Gordiva, now introduces Danish chewing gum firm Gumlink to Turkey. Gumlink and Murat Ülker's firm Yıldız Holding has signed an agreement to form 50/50-owned joint venture under the name of Continental Confectionery Company (CCC Gıda Sanayi ve Tic. A.Ş.) Ülker will invest $100 million in the new factory and in accordance with the agreement.

Ülker group, after purchasing luxury chocolate firm Gordiva, has entered into partnership with Gumlink, the biggest chewing gum producer, in Denmark.

Ülker group, after signing a global purchase agreement with chocolate firm Gordiva, now introduces Danish chewing gum firm Gumlink to Turkey. Gumlink and Murat Ülker's firm Yıldız Holding has signed an agreement to form 50/50-owned joint venture under the name of Continental Confectionery Company (CCC Gıda Sanayi ve Tic. A.Ş.) Ülker will invest $100 million in the new factory and in accordance with the agreement, the plant in Denmark will be closed.

The production will be moved completely to Turkey. The CEO of Ülker group, Ali Ülker Stated:

We would aim to be leader or if not, the second biggest in the market and category we are in. The achievement of objectives could not reach desired levels in our partnership with Baycan firm.

During our negotiations to purchase a chewing gum license, we poured out our grievances. They mentioned that while the labor cost increased, the profitability decreased. We immediately agreed upon investing in a joint venture in Turkey."

Gordiva Strenghtens Ülker

Chief Financial Officer Atilla Kurama was asked whether their owning Gordiva was a factor in their purportedly profitable purchase and he stated:

"We are known through Gordiva and that fact definitely helps when we sit down to bargain. But they were already having difficulties about the labor cost and considering the option.

After the agreement was settled by the two parties, Murat Ülker went to Denmark to finalize the agreement.

The agreement was signed on April 3rd by, Murat Ülker, Chairman of Yıldız Holding and Holger Bagger Sorensen, Chairman of Gumlink in Vejle, Denmark where the headquarters of the firm is located. In their common statement the chairmen stated:

"Continental Confectionery Company will operate in Europe, Turkish Republics, Russia, the Middle East and North Africa as a powerful chewing gum and confectionery producer.

In the partnership which Murat Ülker could not attend due to his illness, Ali Ülker stated that by 2014, they aim at increasing their 12 & share to 30 % in chewing gum and confectionary market.

A New Firm Established

In accordance with the agreement, the chewing gum and confectionary producers Baycan, Horizon ve Etkin Firm that Yıldız Holding incorporates and Gumlink's private label and chewing gum production will be transferred to CCC. Gumlink's nutraceutical and business lines other than medical chewing gum will be included into the partnership. The new installation will create job opportunities for 900 people.

Source: Milliyet