Orchard Valley Foods and Candeco Confektyr AB have merged to create a €40 million producer of confections, ingredients and decorations, called Orchard Valley Foods Group.

The new business will cater for the food manufacturing, foodservice and retail home baking sectors as well as international markets.

UK-based Orchard Valley Foods, headquartered in Worcestershire, is a supplier of an assortment of products from manufacturing partners, including fudge, biscuit pieces, toffee chips, mini marshmallows, chocolate pieces and sprinkles. The business also supplies many retailer own-label home baking products as well as its own ‘Additions’ range of home baking lines.

The new merge sees the company join forces with Swedish supplier, Candeco, which provides decorations and inclusions to the global ice cream, bakery and chocolate industries. Candeco is owned by the Orkla Group, which acquired a majority share in UK-based Orchard Valley Foods in March 2017.

Both companies have an active new product development team involved in the confectionery ingredients and decorations sector.

The move to combine the two businesses will offer customers ‘a complete range of services to meet their needs’, from innovative product development collaboration, various packaging formats, jars, sachets, tubs and bags, all manufactured in BRC A+ and AA global food safety accredited sites.

Cherry Blumberg, Orchard Valley Foods Group managing director, commented: “Candeco is a fantastic business renowned for its creativity in product development, delivering innovative solutions to meet customer needs, so it was a logical move to blend our two businesses to support continued market development.

“The combined resources under the Orchard Valley Foods Group brand will not only offer us new opportunities in the global market, but will give our customers unrivalled product expertise and first-class sourcing capabilities”.

Orchard Valley Foods was formed in 2003 and employs 75 people in sales/marketing, customer services, technical, manufacturing and product development. In the latest year sales were £26m.