Mondelēz International on Friday said it has signed an agreement to acquire a significant majority stake in Evirth, a leading manufacturer of cakes and pastries in China.
Mondelēz added that the move represents an important step forward in its strategy to accelerate growth in the cakes and pastries category – a core focus for the company, alongside chocolate and biscuits.
Founded in 2013, Evirth is a leader in frozen-to-chilled cakes and pastries in China, a category currently estimated at $3 billion, growing at a compound annual growth rate of about 15 per cent.
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.
“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, Mondelēz chair and chief executive.
Linfeng Xu, chairman, founder and general manager of Evirth, said: “We are excited that Mondelēz International is increasing its investment in Evirth, and this is a historic moment for us. 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.”
Mondelēz already has delivered strong growth in cakes, pastries and other baked snacks through its April 2020 acquisition of Give & Go, the leading manufacturer of frozen-to-fresh brownies, cookies, cupcakes and related bakery products in North America, and its January 2022 acquisition of Chipita Global SA, a high-growth leader in croissants, baked rolls and related snacks, focused in Central and Eastern Europe, with increasing expansion to additional markets.
The deal is subject to customary closing conditions, including regulatory approval.
