Candy Hero’s expansion into Europe has turned into a real opportunity for growth.
Candy Hero, a British candy distributor, opens a distribution center in Nijmegen on December 1. The company opens the branch partly in view of Brexit - half of Candy Hero's customers are located in the EU. In order to continue serving these customers in the same fashion, the company opens a distribution center in the Netherlands.
In 2008 two brothers joined forces and began the journey of revolutionising the distribution of worldwide confectionery. From a few boxes of imported caffeinated gum and mints, Candy Hero quickly grew the range and began opening retail shops. 12 years on, Candy Hero has transformed into an international wholesale distributor with a range of 20,000+ imported American, Japanese and British products.
The results of the EU Referendum in 2016 presented a number of challenges for a business whose customer base is split 50:50 between the UK and the EU. The possibility of extra costs incurred through import duties added to already high shipping costs would have a significant effect on the value Candy Hero could provide to their EU customers. The decision to have a business located in Europe supplying the European customers was the obvious solution. By 2020, Candy Hero had outgrown their UK warehouse and decided to allow their natural expansion to mitigate Brexit risks in one single business move.
"The Netherlands was always Candy Hero’s first choice of EU location for many reasons. The Netherlands has the largest port in Europe, there’s the opportunity to defer import VAT, English is widely spoken and most importantly Gelderland, the home to the new Candy Hero warehouse, borders Germany, one of our key markets."
Candy Hero’s expansion into Europe has turned what was a significant business risk into a real opportunity for growth. Regardless of how UK trade relations evolve, branching out into the EU has indisputable benefits for Candy Hero in maintaining a lean supply chain, allowing competitive pricing and stable margins.
“COVID-19 has complicated the opening of the new warehouse but the fantastic in-country support from NFIA and excellent digital connectivity have helped to overcome the new challenges faced. We are very much looking forward to being up and running in such a hospitable and innovative country.”