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Mondelēz International has announced plans to acquire a majority stake in Evirth, a Chinese manufacturer of cakes and pastries, as part of its strategy to enhance its footprint in the rapidly growing frozen-to-chilled desserts market.
The deal, pending regulatory approval, aligns with Mondelēz’s focus on expanding its offerings in the cakes and pastries category, which is projected to grow at a CAGR of approximately 15% in a market valued at around $3 billion.
Founded in 2013, Evirth has established itself as a leader in producing cake and pastry products, catering to a consumer base increasingly seeking fresh and premium options. The company's portfolio includes a variety of products such as mille crepe cakes, Swiss cake rolls and cheesecakes, which have gained popularity among younger consumers in top-tier cities.
Mondelēz, which already holds a minority stake in Evirth, aims to leverage its extensive brand portfolio, including Oreo and Philadelphia, to drive innovation and expand distribution channels in China.
The acquisition builds on an existing partnership that has allowed both companies to collaborate on product development and enhance their market presence.
Dirk Van de Put, Mondelēz chair and CEO, said: “We’re excited about the opportunity to accelerate our growth in cakes and pastries through continuous innovation, leveraging our high-value brands to create more premium tastes and formats”.
Linfeng Xu, chairman, founder and general manager of Evirth, added: “We are excited that Mondelēz International is increasing its investment in Evirth, and this is a historic moment for us. By bringing in Mondelēz's brand experience, technical strength and international network, Evirth can be better positioned to provide premium products for our customers and consumers.”
The move is seen as a response to the rising demand for sophisticated taste profiles and convenient snacking options among Chinese consumers.
Evirth's strong distribution network, particularly in club stores, has been a key factor in its rapid growth. The integration of Mondelēz’s brand experience and technical expertise is expected to enhance Evirth's capabilities, positioning the company to meet the evolving tastes of consumers more effectively.
This acquisition follows Mondelēz’s previous investments in the baked goods sector, including the 2020 purchase of Give & Go, a leading manufacturer of frozen-to-fresh bakery products in North America, and the 2022 acquisition of Chipita Global SA, which specialises in croissants and related snacks in Central and Eastern Europe.
Image: © Evirth website
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