As a 'tier-two' sponsor, the world's biggest candy maker has paid more than 20 million pounds (S$50.6 million) to use the London Games to market its products and to become the sole supplier of all confectionery and packaged ice creams to be sold within the Olympic Park.

While the deal is not proving popular with health campaigners who point out the link between chocolate bars and childhood obesity, it means that London organizers have now reached around two-thirds of their target of 600-700 million pounds from domestic sponsors.

London 2012 chief executive Paul Deighton acknowledged that the financial climate is likely to be tough for some months, but said that the organisers did not plan to revise down their long-term fundraising target.

He said that no company has pulled out of discussions, and that the London organising committee had enough flexibility to hold off on closing deals until companies were ready.

'While we are alert to the fact the economy is slowing down, having done so much is really helpful,' he said. 'If we end up doing more in 2010 and 2011 than in 2009, we are in a strong enough position to play it that way.'

However, he added that a planned 'clothing and homeware' sponsor, previously announced as a 'tier-one' category, could slide back into the 'tier-two' category.

While 'tier-two' category sponsors pay a minimum of 20 million pounds, 'tier-one' sponsors must fork out at least 40 million pounds.

The committee had already signed up seven 'tier-one' partners ahead of the Beijing Games - Adidas, British Airways, BP, BT, EDF Energy, Lloyds TSB and Nortel - and Mr Deighton said on Monday he would not be surprised if no more deals are done in that category.

He expects the pool of 'tier-two' sponsors, currently just Cadbury and financial services firm Deloitte, to reach the same size.

The number of sponsors in the 'tier-three' category, which will involve services directly relevant to the running of the Games and does not open for business until early next year, should be at two or three times each of the other two categories, Mr Deighton added.

'Tier-three' sponsors must contribute at least 10 million pounds.

The London committee plans to raise 2 billion pounds overall from the private sector in three ways - the domestic sponsorship, funding from the International Olympic Committee and sales of tickets and merchandise.

Mr Deighton said that the IOC component, which comes from its sales of international broadcasting rights, was secure and that he expects improved economic conditions by the time of ticket sales in 2011 and 2012.

Mr Deighton also defended the decision to take on board Cadbury for the Games, amid criticism from the National Obesity Forum.

Organisers of the London Games have used the event as a platform to get young people in Britain fitter and more active in sport, which health campaigners claim is incompatible with deals with companies like Cadbury and global sponsor McDonald's Corp.

Cadbury has a long history of sports sponsorship - it was an official supplier of the 2000 Sydney Olympics, as well as the 2002 Commonwealth Games in Manchester and 2006 Commonwealth Games in Melbourne.

Cadbury chief executive officer Todd Stitzer said that Cadbury, 'as part of the fabric of British life' was a good fit with the Games.

'We'd all be losing the plot if we missed the point that life is full of interesting indulgences,' he said. 'People need to learn to balance consumption of treats and physical exercise.' -- AP