Cadbury is expanding into the burgeoning popcorn market - four years after it offloaded its Butterkist brand.

It has launched Cadbury Popcorn - re-closable 130g bags of toffee popcorn coated in milk chocolate (rsp: £2.03) - to tap into two of the hottest segments of the snack market: popcorn and sharing bags.

The popcorn category has risen 17.8% year-on-year to £50.4m [SymphonyIRI 52w/e 14 April] and has seen an explosion of new products and brands over recent years such as Tyrrells, Metcalfe’s Skinny Topcorn and recent arrivals Propercorn and Lord Poppington’s.

“We constantly take steps to keep up to date with consumer tastes and ensure our sharing portfolio remains as relevant as possible,” said Sally Barton, brand manager for bitesize at Cadbury owner Kraft Foods, adding that the launch would be supported with in-store activity and outdoor advertising.

Retail analysts Mintel described popcorn as a “star performer” in the snack market and said 2011 had been a defining year, with the proportion of snack consumers who ate popcorn rising 15 percentage points to 39%. “Popcorn’s usage in large households indicates sharing bags may be the most profitable pack size,” said Mintel’s 2012 snack report, adding that resealable packaging might encourage consumers to trade up.

In 2008, Cadbury-Schweppes sold Monkhill confectionery - which included Butterkist - to Tangerine Confectionery for £58m. Butterkist holds a 57% share of the UK popcorn market and grew 7% year-on-year [SymphonyIRI].

Cadbury said that the sale of Monkhill had not meant it was no longer interested in popcorn. “The sale was because Butterkist was a brand within a portfolio that was sold in one go,” said a spokesperson.

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