Mondelēz International Buys Into Premium Cookie Segment
DEERFIELD, Ill. — Mondelēz International is adding another brand to its pantry.
As it looks to address changing consumer tastes, the company entered an agreement to acquire premium cookie maker Tate's Bake Shop for $500 million. The deal is expected to close this summer.
Tate's — which was founded on Long Island, N.Y., in 2000 — is recognized by its green-and-white label on the bag. The company's signature thin-and-crispy cookies are known for being made from simple, authentic, high-quality ingredients.
"Tate's is a great strategic fit that will complement our portfolio of beloved snacks brands. 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," said Mondelēz International Chairman and CEO Dirk Van de Put. "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."
With a strong founder story and on-trend products, Tate's has been one of the fastest growing biscuit brands in the United States over the past 12 months, according to Mondelēz. The brand's sales have quadrupled over the past five years. In 2018, retail sales have grown by more than 40 percent through March.
"We're thrilled and humbled to be joining a portfolio of some of the world's most well-known and successful snacking brands," said Maura Mottolese, CEO of Tate's. "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 [founder Kathleen King] 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," she added.
According to Mondelēz, it will operate Tate's as a separate standalone business to nurture its entrepreneurial spirit and maintain the authenticity of the brand while providing resources to accelerate growth.
Tate's Bake Shop senior leadership will continue to run the Tate's business from its headquarters on Long Island, including its Bake Shop located in Southampton, N.Y. Tate's will continue to produce all products at its current manufacturing facility.
Headquartered in Deerfield, Mondelēz's 2017 net revenues reached approximately $26 billion. It offers brands in 160 countries, including its global brands such as Oreo and belVita biscuits; Cadbury Dairy Milk and Milka chocolate; and Trident gum.