An exclusive 1-2-1 interview with Anthony Francheterre, CEO Tangerine Confectionery UK – and Angus Kennedy, Editor 

Tangerine Confectionery UK, plans to double their size from £130 million… and now after this exclusive 1-2-1 interview, we think this is all quite achievable. With over £20 million investment, a clear focus and a very likeable new CEO, we speak with the man at the helm one of the fastest growing confectionery producers in the UK offering key insights into their strategy for the future.

Angus: “Anthony Francheterre, you’re the CEO of Tangerine Confectionery which is quite an exciting position. Can you tell me how you got to this position and a bit about your background?”

Anthony: “Of course, I came to this company two years ago from United Biscuits selling the famous McVitie’s Digestive, and I was running Northern Europe. I joined that company because I had previously worked with the same shareholders at United Biscuits.”

Angus: “So you’ve obviously had quite a lot of experience in the food sector?”

Anthony: “That’s right, in fact my whole career has been in the food sector; starting with Nestlé and then United Biscuits.”

Angus: “And Barratt.”

Anthony: “Exactly, Barratt is one of the most iconic brands in our portfolio at Tangerine celebrating its 170^th anniversary this year. If you think about the portfolio some of the brands were born in the 20s like Sherbet Fountain followed by Refreshers in the 30s and then Dip Dab in the 40s. Such a heritage is a brilliant asset for a company to have. Our adult brands include Ruffles which we saw during yesterday’s factory visit in York.

Angus: “Can you tell me about the nature and size of Tangerine Confectionery for those that may not have heard of it? I’m sure there aren’t many now especially with you on board!’

Anthony: “Tangerine Confectionery is a £130 million business where 80% of our business is in the UK, it’s early days but we are still developing our international focus. There are five factories all based in the U.K. and each factory is what we call a ‘Centre of Excellence’ where it will specialise in one type of product, such as liquorice for example.

Angus: “And this factory where we are now in Pontefract has a wide capacity to make lots of different types of product.”

Anthony: “That’s right, we are in the heart of Barratt where some of the most famous liquorice was created, just like the Liquorice Novelties on our table here. This is also the birthplace of many other products like Dip Dab so it’s a really popular and iconic location. We have passionate employees working here that are probably the third generation so it’s nice to have so much history.”

Angus: “How does the confectionery industry compare in terms of its culture to the food sector?”

Anthony: “What I find interesting about working in confectionery is that it’s a fun business … the people are fun- because you make fun products! It’s creative and it’s always changing. The tastes are always changing too; we are all about the sourness of the product or the shape.  So, it’s really quite magical and exciting to be honest.”

Angus: “It’s been two years since you started and I noticed when we went around the factory in York yesterday that there are already some very positive changes, can you tell us a bit about the investments you have been making?”

Anthony: “Over the last four years we have invested over £20 million across three main areas. The first priority was quality and safety which is part of the DNA of this company. The second area is consumer trends which covers different types of packaging; resealable packaging and smaller portions in response to the sugar debate- which we take seriously. Other consumer trends cover new textures and tastes and different values of ‘sweet.’ The third is to try and stay competitive and ahead of the game which involves new strategies in production and packaging; it’s important to stay modern.”

Angus: “Yes I saw when visiting the factory that there were spaces for new machines to arrive, bagging lines and more.”

Anthony: “Yes. The last two years have been dynamic, we haven’t been the fastest growing player but have been the second fastest- and I’m very proud of that! We have big ambitions.”

Angus: “So when you say the second fastest-growing, out of who and where?”

Anthony: “Out of 10 players, we are competing with very big companies like Nestlé and Mondelez. We are outperforming most of our competitors in terms of overall performance- which is very exciting!

Angus: “It is yes, and when did this growth and performance start? Obviously when you started, right?”

Anthony: “I think it started beforehand but we have really amplified it, it’s all about the re-thinking of existing brands, just like Softies. This is an exciting new texture which is working very well, revitalising what we have is a real focus at the moment- for example Refreshers Softies and tomorrow the Dip Dab Softies.”

Angus: “The big question that a lot of people have been asking is: will you be re-launching some of the older brands?”

Anthony: “We’ve done a bit of research into which brands are the most competitive and which brands resonate the most with customers, that way we end up with a prioritisation of our portfolio because it is indeed impossible to fight all fronts. So, for us on the kids and family side Barratt is critical, with Dip Dap and Refreshers and so on. On the adult side our 2 focused brands are Ruffles and Henri Goode’s, the leading soft liquorice brand. This will be our focus. If things go according to plan, in one or two years we can introduce other brands into our strategy- but one step at a time!”

Angus: “Tell me about retailers. What has their response been to this new drive that you’re putting into the business?”

Anthony: “Well I think they have been supportive so far on the branded re-launch and we are also working with them for their own brands. This is very important to us, it’s a legacy of the company and something we are very good at- it’s actually half of our business. So, we’re working with big names in retail and have done so for almost 30 years. We support them through quality, innovation and we are also very engaged with public health; there is a target to reduce sugar content in the coming years- therefore it’s very important for the retailer. We have been bonding with them to find the right solution that doesn’t impact the taste and that’s mission number one. We should never forget that sweets are treats and pleasure. We can improve a product without compromising quality and that’s the key message.”

Angus: “The government’s PHE quota to reduce sugar by 20% by 2020 is quite a tall order for the confectionery industry. Do you think that’s achievable, is it the right thing to be presented to the confectionery industry?”

Anthony: “I think it’s achievable, if you work with the right suppliers and partners then there are good solutions, because you cannot replace sugar with what I call ‘crap!’ That’s not the right thing to do. Yesterday you and I visited the technical lab, an outstanding asset for us, where people are working and elaborating different recipes that have less sugar. I have a product here that you can taste, coming to the market in June, called Dip Dab Softies. This is a product with 38% less sugar.”

Angus: “38% - that’s a big difference. And this is new to children’s confectionery?”

Anthony: “It’s quite an amazing product- and it still tastes great! We have worked on different types of starch and sugar to achieve it.”

Angus: “Is it about the calorie reduction or the enjoyment of the product? Incidentally does taste great!”

Anthony: “Enjoyment and taste is the first priority and then, if we can achieve that same taste with less sugar, that’s what we’ll do. You heard of the famous soft drinks tax?

Angus: Yes, we all are watching it closely. “I wonder what would happen to confectionery producers if they don’t meet these targets; more tax?”

Anthony: “That is definitely a risk, but I’m seeing on the market today ever more clever and better products. At this stage let’s stay positive and assume we will achieve our targets!”

Angus: “Do you think it’s a good thing that this is happening, that new targets are being set for companies like Tangerine’s brand of Barratt?”

Anthony: “Yes, and I think we shouldn’t forget that it’s not only the recipe, it’s also important to reduce the consumption- like portion control or what we call ‘micro bags.’ This helps mums to control the amount that their kids eat, there are multiple answers to the problem.”

Angus: “Some of these products, especially this one…” [Angus picks up a box of Liquorice Novelties] “I used to have this when I went to school! I hear people saying, ‘I want my children to experience the same pleasure as I had,’ and this whole retro idea really came in around 10 years ago when producers really started to revitalise it. Tell me about how powerful that is in terms of a marketing tool to drive sales?”

Anthony: “From Mintel’s yearly producer report on consumer trends, the factor of retro was the second most important aspect in terms of what they expect. At number one they expected more convenient packaging, retro brands, followed by the idea that the product is Made in the UK. The fourth was for more innovative and fun products. So, as you can see, second place - a retro product is important to consumers; it is hard to say why, but I think it’s because they trust those brands- just like you said as a parent you want your kids to experience what you had. Also, retro brands by definition are made in your home country, it’s positive nostalgia and fun. It is a trend seen in many other places in Europe, such as France and Holland.

Angus: “You mentioned the UK, how does Tangerine sit in the global market?”

Anthony: “That is an area for great growth and development, we grew 26% last year and plan to grow another 30%. It’s all about leveraging what we call the historical market, where the company has been present in the past. You will not be surprised to hear Canada, Australia and other commonwealth countries in our heritage- that’s because English brands stand for quality. There are also new markets like the middle east that are very important for us in terms of development, we use many brands or Barratt because English brands have a respect like no other.”

Angus: “It is interesting that that the UK has a very good name for quality in the confectionery industry?”

Anthony: “Two hundred years of experience is worth something to consumers. Also, the key players that are based in the UK have always payed close attention to quality resulting in a very high standard here and widely seen across the market.”

Angus: “Anthony, when we went to the Pontefract factory yesterday it was very interesting because I discovered that the efficiency of the factory has increased hugely. Is that going to happen right across all the factories?”

Anthony: “It isn’t going to happen, it has happened! There are three main areas that we focus on. The first being LEAN culture, this is all about running your recipes and machines at their full potential, being very rigorous and repetitive on how you do things to guarantee consistency and quality; and this drives the underlying performance. As you’ve seen we have invested massively into processes and packaging so we can produce twice as much than before using the same line, and that’s quite impressive. In York, we have invested in new chocolate assets that allow us to produce twice as many bars or sweets than before improving the quality . Transforming old assets is very exiting because we can bring them back into the 21^st century.”

Angus: “So in terms of production expansion you’re using the same space but much more efficiently and you’re constantly investing into improvements this way.”

Anthony: “Exactly, so far we still have some space in our factories that we can utilise for the future.”

Angus: “Before we started, we saw a clip of a very exciting Barratt advertising campaign. Tell me about marketing and how you are going to push the brands this year and beyond?”

Anthony: “There has been a global project for the company, especially for Barratt where we have reworked the designs to ensure the graphics really express what the brands stand for and to help them to be recognised on the shelf. That was mission one. Mission two was to bring innovation to taste, as we have discovered today; we launched Dip Dab Sour Apple which is an iconic product with a sour twist- something that’s very popular nowadays with kids. Then the big step change for us as a company is that we are back on TV with Barratt, we have three adverts that are running from now up until October. Here we aim to advertise the new Softies range along with the retros such as Refreshers, Sherbet Fountain and others.”

Angus: “I loved these, I used to go right to the end and try and suck out the middle bit. Funnily enough, when I used to have these they were in a paper case so I guess they have changed a lot.”

Anthony: “It is a very big product for us, so it’s important to revitalise and bring such historical brands to the minds of the consumer. We are spending around £2million in terms of advertising.”

Angus: “How effective is advertising? Let’s say you start running a campaign, would you notice an immediate effect or does it take a bit of time?”

Anthony: “There isn’t one single answer to that. We tested advertising last year on Softies and it was very effective. This is because you recruit consumers that don’t know you or may have forgotten your brand so it is great to bring our name back to people’s memories. But also, it is the support you receive from the trade, it gives us much more visibility so the trade wants to take advantage of the advertising – and gives you more listings. Shops that were once reluctant to stock your products start to believe in you and gain confidence in your new products because of the advertising.”

Angus: “A big topic in many industries, as you have probably noticed, is the carbon footprint and artificial ingredients and flavourings. How important are things like transparency to this company?”

Anthony: “This is something that has always been important to the company even prior to me joining. They were very engaged in reducing the waste (zero waste goes to landfill), which is a good achievement for a company; we regularly reduce our water and energy consumption, good for the planet and for us as a company. You can link your economic agenda to your sustainability agenda at a low cost, which is a win win! We are also extremely careful about the sourcing of our ingredients, but it’s a journey where some things are easier to achieve than others, however as a whole we are very committed.”

Angus: “We are, sadly drawing to a close and I have my last question. You are the CEO of the biggest, British owned sugar confectionery producer and so everyone will be looking up to you and your ambitions for the next few years. How do you see things developing, and what would you like to see at Tangerine?”

Anthony: “My ambitions are quite simple, if I could double the size of the business that would be great! It is going to be a balance of making the great Barratt brands, as well as the other brands happen and keeping a close relationship with the retailers. We are like a one-stop-shop for them, we can really offer them the majority of what exists on the market; this two-legged strategy of pushing a branded business hard and supporting retailers will give us that platform. Not to forget my ambitions to really contribute to international markets which is a great plan for the next five years.”

Angus: “Fantastic. Anthony, thank you very much for this interview- it has been a great pleasure listening to you! Now let’s get on with the important part of this trip and taste some of these iconic products!”

Anthony: Thank you Angus it’s been a pleasure speaking with you.

See the video and full interview here: http://kennedysconfection.com/#Kennedysvideo

This article has been brough to you in Assocation with GEA Food Processing, visit them here: https://www.gea.com/en/applications/food/index.jsp