BOCA RATON, FLA. — Mondelez Worldwide, Inc., Chicago, has made 9 acquisitions since 2018. 5 of the most important have been Tate’s Bake Store, Give & Go, Chipita, Clif Bar & Co., and Ricolino. Throughout a Feb. 21 presentation on the Client Analyst Group of New York convention in Boca Raton, Luca Zaramella, chief monetary officer, defined the corporate’s strategic priorities for every enterprise.
“Our framework round M&A may be very simple,” he mentioned. “We’re concentrating on progress accretive belongings that meet key shopper wants, and fill portfolio gaps, each from a class standpoint and geographically. Clearly, we favor chocolate and biscuits belongings. However in rising markets, we don’t lose sight of the benefit, that scale and path to market can carry.”
Acquired in 2018, Tate’s Bake Store offered Mondelez with an entry level into the premium cookie section. Because the acquisition, Tate’s Bake Store has greater than doubled gross sales and doubled distribution, mentioned Mr. Zaramella.
“Wanting forward, this model has loads of potential, together with extra distribution factors, new merchandise similar to cookie bark and vegan, and rising the platform in baked snacks or ‘Chocobakery,’” he mentioned.
Instore bakery provider Give & Go was acquired in 2020. The corporate manufactures desserts and pastries and has averaged greater than 20% gross sales progress over the previous two years, surpassing $700 million.
“Mondelez has offered capital to extend capability for main innovation platforms, and the outcomes are very sturdy, rising greater than twice the speed of the market growing family penetration by over 20% and efficiently getting into new adjacencies similar to donuts and mini-snack desserts,” Mr. Zaramella mentioned. “We now have additionally leveraged our portfolio of iconic manufacturers similar to Oreo and Chips Ahoy! to drive incremental income and differentiation.”
Chipita, a worldwide provider of packaged desserts and pastries, generated gross sales of roughly $580 million when it was acquired in January 2022. The corporate’s merchandise embody croissants, bagel chips, cake bars, biscuits and spreads bought largely beneath the 7Days, Chipicao and Fineti manufacturers.
“Chipita is a high-growth desserts and pastry platform with almost $700 million in income,” Mr. Zaramella mentioned. “The 7Days model has a number one market place in Europe with a lovely footprint skewed towards rising markets. It additionally gives scale to leverage different Mondelez manufacturers and increase distribution into new markets.
“We closed Chipita early final 12 months and totally built-in it inside six months, posting double-digit income progress in ’22. This 12 months, we anticipate to increase our geographic footprint and unlock value synergies, together with line automation, community optimization, waste discount and media efficiencies.”
Mondelez Worldwide took a major step ahead within the bar class in 2022 when it acquired Clif Bar & Co. for about $2.9 billion.
“Clif grew double digits in ’22, crossing $800 million in income and delivering a three-year CAGR of almost 9% in retail income,” Mr. Zaramella mentioned. “We anticipate important top-line synergies, together with deeper distribution and channel enlargement in membership, comfort and e-com, whereas refocusing on our core portfolio gadgets.
“There are additionally massive alternatives to enhance velocities, construct our capabilities and drive worldwide enlargement in massive developed markets the place we consider the model can journey very effectively. Advantages are usually not restricted to prime line. There are additionally important value synergies within the areas of procurement, line efficiencies, dealer commissions, logistics and warehousing.”
Headquartered in Mexico Metropolis, Ricolino was a enterprise owned by Grupo Bimbo SAB de CV that Mondelez acquired for about $1.3 billion in 2022. The corporate manufactures sweet bars, truffles, panned sweets, caramel, lollipops, marshmallows, arduous and chewy candies, nougats and gum bought beneath such manufacturers as Ricolino, Vero, La Corona and Coronado.
“Ricolino … doubles our dimension in Mexico, a key precedence marketplace for us in Latin America,” Mr. Zaramella mentioned. “These iconic, widely-loved manufacturers and sweet bars have nonetheless super progress potential, each in Mexico and within the US the place they enchantment to a big and rising cohort.
“Its sturdy path to market, together with greater than 2,100 DSD routes and 440,000 conventional commerce retailers will allow us to quickly increase our share in biscuits and chocolate, whereas accelerating our entry into desserts and pastries. Ricolino delivered sturdy ends in 2022, rising double digits. Integration is off to a superb begin, and Mexico and Latin America groups are very energized concerning the alternative forward.”