Cadbury Schweppes opens R&D centre in Singapore
SINGAPORE : The next big hit among candy lovers could be coming straight from a new Cadbury Schweppes regional research facility in Singapore.
Costing S$4.3 million, the Science and Technology Centre is part of the company's plans to accelerate growth in key emerging markets in Asia-Pacific.
Confectionery sales in Asia-Pacific have been sweet, accounting for 30 percent of the US$2 billion turnover, up from 15 to 17 percent previously.
The industry grew by 8 percent last year and is on a strong growth path.
The Asia Pacific confectionery market has grown by 50 percent over the last four years for Cadbury Schweppes, driven mainly by growth in emerging markets like India, China and Southeast Asia, as well as through acquisitions.
So Cadbury Schweppes wants to milk the market potential by pushing out more innovative products.
The multi-million dollar R&D centre in Jurong will house 10 researchers from Japan, Australia, India, Singapore and Malaysia and will develop affordable gums and candy.
A lot of work and research go into every bite of the candy, as each piece could take up to 70 ingredients to make, so researchers here will be using new technologies to develop products for the Asia-Pacific markets.
The centre could be expanded next year and will complement other research facilities in Bombay, Tokyo and Melbourne.
The research centre in Bombay is focused on developing affordable chocolate products, while the Melbourne branch specialises in premium chocolate products, and the Tokyo facility looks at cutting-edge gums and candy.
The company hopes to generate 15 percent of total sales from new flavours.
Said Rajiv Wahi, president, Cadbury Schweppes Asia Pacific, "We are less interested in introducing many, many new products, but much more interested in introducing products that will become very big very quickly. We hope that would then mean that when we do do new products, we've done it more effectively, done research, done our consumer tests and then launch in many markets at the same time."
For a start, it is expected to tap on the rich supply of tropical fruits here to create all-natural fruit-based bars and candies.
The research facility is the company's second major investment in Singapore, after it set up its Asia-Pacific headquarters here last year.
Said Teo Ming Kian, chairman of the Economic Development Board, "This presents exciting opportunities for the processed food sector, which is expected to grow at a rate of 12 to 15 percent annually over the next five years. This focus on food science and innovation is aligned with our vision of transforming Singapore into a vital food hub."
The company will also be working with the National University of Singapore to develop novel food ingredients and conduct research on their nutritional value. - CNA /ct
charlie and the chocolate factory
