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
