Sweet success for Hope and Greenwood as big investor bites

http://www.guardian.co.uk/business/2013/feb/05/sweet-hope-and-greenwood-luke-johnson

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The former owner of the Ivy restaurant and Pizza Express is expanding into the confectionery business.

Serial investor Luke Johnson has snapped up a stake in Hope and Greenwood, the retro sweets brand that sells old-fashioned favourites including flying saucers, sherbet dips and Love Hearts.

The company, founded in 2004 by Kitty Hope and Mark Greenwood, has two stores in London, and supplies John Lewis, Selfridges and Waitrose, among others.

Johnson, who oversaw the expansion of Pizza Express from 12 restaurants to more than 250 in the 1990s, said the classic sweets brand has "masses of potential to grow".

Sweet sales have increased in recent years, with some analysts suggesting the recession has seen consumers wanting sweets that remind them of childhood comforts.

In 2010, the US private equity firm Blackstone snapped up the UK's largest independent sweet manufacturer, Tangerine – the business behind sweets like Fruit Salads, Refreshers, Dip Dabs, American Hard Gums and Jelly Babies.

Sales of sweets increased 1.6% in 2011 but stores specialising in the retro confectionery saw annual growth of about 20%.