Mondelēz International snaps up premium cookie maker Tate's Bake Shop
Mondelēz International, the owner of Oreo, Belvita and Ritz Crackers, has agreed to acquire cookie maker Tate’s Bake Shop for around $500mn, as it tries to enter the premium cookie market.
Mondelēz said it will keep Tate’s as a standalone business with its own physical bakeshop location and New York City headquarter to preserve its niche brand.
The NY-based premium cookie and baked goods brand has grown rapidly over recent years, reporting that its sales have quadrupled in the past five years.
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Mondelēz CEO Dirk Van de Put said that Tate’s acquisition would help the company enter the “fast-growing premium cookie segment.”
“Tate’s has demonstrated exceptional and very profitable growth, and we look forward to working with Tate’s management team to expand distribution and build upon that success,” he added.
The deal comes at a time when traditional snack companies have struggled, amidst changing consumer preferences towards healthier options.
The acquisition will also help Tate’s leverage Mondelēz’s expertise to expand its global footprint.
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,” said Maura Mottolese, Chief Executive Officer of Tate’s Bake Shop.
“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.”
This is Mondelēz’s first large deal under the leadership of Van de Put who became Chief executive last November. The deal is expected to close this summer.
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