Orchard Valley Foods and Candeco Confektyr have merged to create a €40 million producer of confections, ingredients and decorations for the food manufacturing, foodservice and retail home baking sectors, as well as international markets.

The new business will be known as Orchard Valley Foods Group. The move will bring together Orchard Valley Foods international sales, marketing and distribution, as well as Candecos flagship manufacturing site in Malmo, Sweden.

Candeco supplies decorations and inclusions to the global chocolate, bakery and ice cream industries and is owned by the Orkla Group, which acquired a majority share in UK-based Orchard Valley Foods in March this year. The company employs 35 people.

Orchard Valley Foods, meanwhile, supplies fudge, biscuit pieces, toffee chips, mini marshmallows, chocolate pieces and sprinkles from its manufacturing partners. The company also supplies retailer own-label home baking products, as well as its own Additions range of home baking lines. Orchard Valley Foods has 75 employees and in the latest year, sales reached £26m.

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

The move to combine the two businesses, the firms says, will offer customers a range of services – 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 explains, "The confections, inclusions and decorations market continues to offer significant growth opportunities, both in domestic and export markets as manufacturers seek to add novelty and attraction, whether through visual appeal, texture, indulgence or mouth feel to their products.

"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."