Mondelēz International, the owner of Oreo, Chips Ahoy, and Ritz Crackers, will purchase US-based cookie maker Tate’s Bake Shop for $500 million.
Founded in 2000 in Long Island, New York, Tate’s has grown a strong consumer following in the US and its sales have quadrupled in the past five years. As well as cookies, the brand sells pies, cakes, brownies and a gluten-free line.
The move comes as Mondelēz saw its net revenues in North America decline 1.3% in its latest quarterly results as consumers shift to low-sugar snacks. Overall, its net revenues were up 5.5% to $6.77 billion.
Mondelēz will operate Tate’s as a separate business to “nurture its entrepreneurial spirit and maintain the authenticity of the brand”, while providing resources to accelerate growth. Tate’s Bake Shop senior leadership will continue to run the Tate’s business from its headquarters on Long Island, and products will continue to be made at its current manufacturing facility.
The deal marks the first acquisition by new Mondelēz CEO Dirk Van de Put, who took over from Irene Rosenfeld last November.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” he said.
“With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast growing premium cookie segment. Tate’s has demonstrated exceptional and very profitable growth, and we look forward to working with the Tate’s management team to expand distribution and build upon that success.”
Tate’s Bake Shop CEO Maura Mottolese added: “We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands.
“Consistent with Mondelēz International’s purpose to create more moments of joy for consumers, providing an authentic, delicious indulgence has been at the heart of Tate’s Bake Shop since Kathleen first opened her storefront nearly two decades ago.
“Now, together with Mondelēz International, we’ll have the opportunity to take Tate’s to the next level and offer our cookies and baked treats to many more consumers across North America.”
The acquisition is expected to close during the US summer of 2018.
© FoodBev Media Ltd 2021
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