Orchard Valley Foods has merged with Swedish decorations manufacturer Candeco Confektyr AB.

The new business will be known as Orchard Valley Foods Group, a €40m (£36.4m) producer of confections, ingredients and decorations for the food manufacturing, foodservice and retail home baking sectors as well as international markets.

Candeco, based in Malmö, Sweden, is owned by the Orkla Group, which acquired a majority share in UK-based Orchard Valley Foods in March 2017.

Its purpose-built factory employs 35 people and specialises in the development, manufacture and sales of decorations and inclusions – such as hard boiled caramel, sugar strands and decoration pearls – to the global ice cream, bakery and chocolate industries.

Cherry Blumberg, Orchard Valley Foods Group managing director said the move will offer new opportunities in the global market.

“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,” Blumberg said.

“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.”