Confectionery Trade Finance (SIC 10821)

Trade and Stock Finance For Confectionery Products

Trade Finance Global / Finance Products / Confectionery Trade Finance (SIC 10821)

What is Confectionery Trade Finance?

Confectionery products are a key product category for retailers, wholesalers and commercial foodservice firms around the world. As an impulse product for consumers, the purchasing trends of confectionery change regularly and frequently. However, on average global demand for confectionery products is rising, with major brands capitalising on their global appeal to ship products to emerging markets buoyed by rising consumer per capita incomes. As the sector grows, Trade Finance Global can help confectionery firms fund profitable ventures without stringent capital requirements to allow them to capitalise on this genuinely global growth.

Confectionery Trade Finance

Despite the global outlook, several economic trends are disrupting the UK confectionery market, creating tough conditions for some traders. A level of uncertainty around the implications of Brexit for tariffs and quotes on sugar and cocoa, and for major retail supply chains, is affecting order volumes, and fluctuations in the prices of key commodities have out the squeeze on suppliers. Consumer habits are also shifting, increasingly perceiving confectionery as something to be shared or given as a gift. However, these are creating profitable trends towards “premiumisation” as shoppers seek new flavours, different experiences, and quality products. Imports of American confectionery, particularly sour candy, are also growing rapidly. Many wholesalers are also increasingly focusing on global markets, as major Asian markets such as Japan and South Korea drive demand for premium products and European and US branded confectionery.

Establishing or expanding international trading operations can be tough for some firms’ finances. The delays between payment of suppliers, transportation of the purchased goods receivable, and eventual sale of the product to retailers or consumers can create lengthy trade gaps in firms accounts receivable, leading to cashflow issues and uncertainty about further investments or ventures. Trade financiers can support these firms by advancing lines of credit to repay suppliers with lengthy repayment terms which allow firms to profit from the sale of the imported goods before repaying their lenders. These loans are also commonly made without the stringent capital requirements required by conventional lenders, easing pressure on firms’ cashflow and maximising their profits from the ventures they invest in.

Products financed

Key confectionery products include:

  • Sugar Confectionery
  • Non-cocoa confectionery (i.e. white chocolate)
  • Chewing gum
  • Cocoa powder
  • Bulk chocolate (in powder, liquid, granular, paste or block)
  • Chocolate confectionery
Confectionery Trade Finance Requirements
  • Your business is profitable with an established trading history
  •  You are operating a creditworthy business
  •  You have an agreed buyer or seller for your proposed venture
How the transaction works

Trade Finance Global can provide finance products and trade finance tools to maximise profits and minimise uncertainty for confectionery traders in two main ways. Firstly, conventional export factoring products secure finance for profitable ventures from a wide variety of private backers against firms’ accounts receivable. This avoids directors having to deprive their firms of funds to meet the high capital securities required by conventional commercial finance or reduce their control of the firm via extended equity sales. Second, TFG can administer a variety of trade finance tools, such as letters of credit or performance bonds, to ensure that buyers and sellers both receive the documentation and prompt payment they need to securely conduct international transactions across trade jurisdictions. This can empower buyers to negotiate discounts from suppliers who can expect to receive payment quickly and securely, whilst maintaining the consistent, timely flow of receivables critical to trading firms’ margins and profits.

What is the SIC Code for Trade in Confectionery?

The manufacture of confectionery is covered by two SIC codes dependent on whether the confectionery produced is a “sweet” (sugar confectionery) or a “chocolate” (chocolate confectionery). Subsequent SIC codes exist for the wholesale and retail sale of confectionery products and cocoa.

10821   Manufacture of cocoa and chocolate confectionery
10822   Manufacture of sugar confectionery
46360   Wholesale of sugar and chocolate and sugar confectionery
46370   Wholesale of coffee, tea, cocoa and spices
47240   Retail sale of bread, cakes, flour confectionery and sugar confectionery in specialised stores

A separate trade finance pages exists for Sugar Trade Finance, and for broader Food & Drink Trade Finance.

Full tariff schedules for chocolate confectionery and sugar confectionery can both be found on


Case Study

Wholesaler, Confectionery Trade

A confectionery wholesaler specialising in cross-Atlantic trade of confectionery came under increasing cashflow pressure as demand for its products grew its order book. TFG was able to finance several large orders to maintain profitable revenue streams without compromising the business.

Speak to our trade finance team


  •  Improve supplier relations and secure discounts for quick payment
  •  Secure materials needed to support your business quickly
  •  Meet profitable orders without compromising capital or cashflow


What is Stock Finance?

About the Author

Deepesh Patel is Editorial Director at Trade Finance Global (TFG). In this role, Deepesh leads efforts in developing TFG’s brand, relationships and strategic direction in key markets, including the UK, US, Singapore, Dubai and Hong Kong.

Deepesh regularly chairs and speaks at international industry events with the WTO, BCR, Excred, TXF, The Economist and Reuters, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.

Deepesh is the host of the ‘Trade Finance Talks’ podcast and ‘Trade Finance Talks TV’. He is co-author of ‘Blockchain for Trade: A Reality Check’ with the ICC and the WTO, alongside other industry research.

In addition to his work at TFG, Deepesh is a Strategic Advisor for WOA, and works closely with ITFA. He also sits on the Fintech Working Group of the Standardised Trust.

Prior to TFG, Deepesh worked at Travelex where he was responsible for the cards business and the Travelex Money app in Europe, NAM, UK and Brazil. Deepesh is Chair of Governors and co-opted LA Governor of the Wyvern Federation, which has responsibility for 5 primary schools in South London.

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