Mondelēz International has announced the acquisition of a significant majority stake in Evirth, a leading manufacturer of cakes and pastries in China. The financial details of the deal remain undisclosed.
Mondelēz, known for its popular brands such as Oreo and Ritz, described the acquisition as a crucial step in accelerating growth within the cakes and pastries category, which is a core focus alongside chocolate and biscuits. The company previously held a minority investment in Evirth, collaborating to develop and supply frozen-to-chilled cakes and pastries featuring its iconic brands.
Martin Renaud, Mondelēz’s executive vice president and chief marketing and sales officer, emphasized the company’s ambition to strengthen its position in the cakes and pastries segment, highlighting the absence of a dominant player in the market. He noted that this category represents a significant growth opportunity.
Mondelēz’s growth strategy in this sector has been largely fueled by acquisitions. The company has previously purchased U.S.-based Give & Go, known for brownies and cupcakes, as well as Chipita, a player in croissants and baked snacks in Central and Eastern Europe. Additionally, existing brands like Oreo and Cadbury are expanding their reach within this space.
The cakes and pastries market in China is currently valued at approximately $3 billion and is projected to grow at a compound annual growth rate of around 15%. With a population exceeding 1.4 billion, China presents a substantial opportunity for Mondelēz to enhance its presence in various consumption occasions, particularly events like birthdays.
Since CEO Dirk Van de Put took the helm in late 2017, Mondelēz has actively pursued global acquisitions to strengthen its portfolio, recently adding brands like Tate’s Bake Shop, Perfect Snacks, and Clif Bar to its lineup. Van de Put mentioned that the company evaluates 35 to 40 potential merger and acquisition targets each year, though most do not result in finalized deals.