If you have a sweet tooth, get ready for this update. Mondelēz International has signed an agreement to acquire a significant majority stake in Evirth, a leading manufacturer of cakes and pastries in China. This strategic move is an important step as Mondelēz aims to accelerate growth in the cakes and pastries category.
“We’re excited about the opportunity to accelerate our growth in cakes and pastries through continuous innovation, leveraging our high-value brands to create more premium tastes and formats,” said Dirk Van de Put, Chair and Chief Executive Officer, Mondelēz.
Mondelēz already has a minority investment in Evirth to develop, manufacture, and supply frozen-to-chilled cakes and pastries in China, featuring some of its iconic brands including Oreo and Philadelphia, shared a press release.
“We are excited that Mondelēz International is increasing its investment in Evirth, and this is a historic moment for us,” said Linfeng Xu, Chairman, Founder, and General Manager, Evirth. “By bringing in Mondelēz's brand experience, technical strength, and international network, Evirth can be better positioned to provide premium products for our customers and consumers.”
Founded in 2013, Evirth is a leader in frozen-to-chilled cakes and pastries, a category growing at a compound annual growth rate of about 15 percent. Evirth is growing rapidly, driven by its strong distribution in club stores across China, as well as its R&D and technical expertise.
Through its April 2020 acquisition of Give & Go, a leading manufacturer of frozen-to-fresh brownies, cookies, cupcakes, and related bakery products in North America, Mondelēz already has delivered strong growth in cakes, pastries, and other baked snacks.
How will this acquisition position Mondelēz for the future? Click back to DMN to find out!