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Merge & Acquisition

Mondelēz enhances its presence in China’s pastry market through the acquisition of Evirth.

Mondelez International has finalized a deal in China’s cakes and pastries sector, a category that CEO Dirk Van de Put had previously identified as a potential merger and acquisition opportunity

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Mondelēz International has announced its intention to acquire a majority stake in Evirth, a Chinese manufacturer of cakes and pastries, as part of its strategy to enhance its presence in China’s pastry market through the acquisition of Evirth. This move is aimed at strengthening Mondelēz’s footprint in the rapidly growing frozen-to-chilled desserts segment.

The deal, which is pending regulatory approval, aligns with Mondelēz’s focus on expanding its offerings in the cakes and pastries category, projected to grow at a CAGR of about 15% in a market valued at approximately $3 billion.

Founded in 2013, Evirth has positioned itself as a leader in the production of cake and pastry products, catering to a consumer base that increasingly seeks fresh and premium options. The company’s portfolio features a range of popular items, including mille crepe cakes, Swiss cake rolls, and cheesecakes, which have resonated particularly well with younger consumers in major cities.

Having already established a minority stake in Evirth, Mondelēz aims to leverage its extensive brand portfolio, including names like Oreo and Philadelphia, to drive innovation and expand distribution channels in China. Mondelēz enhances its presence in China’s pastry market through the acquisition of Evirth. This acquisition builds on a partnership that has enabled both companies to collaborate on product development and boost their market presence.

Dirk Van de Put, Mondelēz’s chair and CEO, expressed enthusiasm for the opportunity, stating, “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.”

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Linfeng Xu, chairman, founder, and general manager of Evirth, remarked: “We are excited that Mondelēz International is increasing its investment in Evirth, marking a historic moment for us. With Mondelēz’s brand experience, technical strength, and international network, Evirth will be better positioned to provide premium products for our customers and consumers.”

This strategic acquisition is a response to the rising demand for sophisticated taste profiles and convenient snacking options among Chinese consumers. Evirth’s strong distribution network, especially in club stores, has been crucial to its rapid growth. The integration of Mondelēz’s brand experience and technical expertise is expected to further enhance Evirth’s capabilities, allowing the company to meet the evolving tastes of consumers more effectively.

This move follows Mondelēz’s earlier investments in the baked goods sector, including the 2020 acquisition of Give & Go, a leading manufacturer of frozen-to-fresh bakery products in North America, and the 2022 purchase of Chipita Global SA, which specializes in croissants and related snacks in Central and Eastern Europe.

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