Mondelez International, home to brands including Cadbury and Oreo, has moved into the in-store bakery category through the acquisition of Canada-based supplier Give & Go Prepared Foods Corp.
The US snacks behemoth has bought a “significant majority interest” in Give & Go, which sells products in Canada and the US and has a portfolio of brands including Two-Bite cakes and Create-A-Treat cookie-decorating kits. Financial terms were not disclosed.
Since 2016, Give & Go has been owned by funds affiliated with US private-equity firm Thomas H. Lee Partners. Give & Go’s management team will retain a minority stake in the business.
Mondelez’s acquisition of Give & Go is the group’s latest move to broaden its business into other snacks segments. In June 2019, Mondelez struck a deal to buy a majority stake in US business Perfect Snacks, which produces chilled nutrition bars. A year earlier, Mondelez acquired another snacks maker in the US, Tate’s Bake Shop, which supplies what the company calls “premium” biscuits.
“Our ambition is to lead the future of snacking by offering consumers a broad range of snacks in key growth channels and categories,” Glen Walter, the president of Mondelez’s business in North America, said. “This is yet another great example of our bolt-on acquisition strategy to establish foundations in faster-growing snacking adjacencies.”
Mondelez said Give & Go had “delivered attractive growth over the past several years”. just-food understands Give & Go’s categories have been growing at more than 5% a year, with the business expanding sales faster than that rate. The company’s net revenues were approximately US$500m in 2019.
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In North America, the in-store bakery channel is worth around $8bn a year. Joel Flatt, Give & Go’s president and CEO, said: “There are significant opportunities for us to accelerate the growth of our business by utilising Mondelez International’s unique capabilities, and our shared desire to invest in innovation that drives consumer engagement and deeper strategic retail partnerships.”