Mondelēz International To Acquire Tate's Bake Shop For $500 Million
Snacking company Mondelēz International has announced that it will acquire American premium cookie and baked goods company Tate’s Bake Shop for roughly $500 million, representing a foray into the premium cookie category.
Tate's Bake Shop is owned by international private equity firm The Riverside Company and other shareholders, including founder Kathleen King.
The brand is available in grocery stores, gourmet shops, and natural food stores throughout the US, and also has an online presence.
Popular Biscuit Brand
The company was founded in Long Island, New York, by King, who first started selling its popular chocolate chip cookies at her family’s farm at 11 years old and opened her first shop in 1980.
It has been one of the fastest growing biscuit brands in the country in the last 12 months, Mondelēz International said in a statement. Seeing sales quadruple in the last five years, retail sales in monitored channels grew by more than 40% during March 2018.
Tate’s Bake Shop will operate as a distinct standalone entity in order to "nurture its entrepreneurial spirit and maintain the authenticity of the brand while providing resources to accelerate growth," the Oreo-maker said.
Its existing senior leadership will continue to run the business from the head office on Long Island, including the brick-and-mortar specialty Bake Shop in Southampton. Production in the current manufacturing facility will also continue.
The deal is subject to customary closing conditions and is expected to be completed during the summer.
"Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands," said Dirk Van de Put, chairman and CEO of Mondelēz International.
"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."
The CEO of Tate’s Bake Shop, Maura Mottolese, commented on the acquisition, "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."
Mondelēz International recorded revenues of $25.89 billion in 2017, representing a drop of 0.1% compared to the previous year, due to a decrease in North American sales. It is present in roughly 160 countries.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.