Mondelez International has reportedly inked a deal with The Riverside Company and other shareholders to fully acquire Tate’s Bake Shop. The value of the investment totaled to at least $500 million. The bake shop will run under the company as a standalone business. This is to develop its entrepreneurial spirit and preserve the authenticity of the brand, report states.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands.” Chairman and Chief Executive Officer Dirk Van de Put, told reports. “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. 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.”
Tate’s Bake Shop entered the food industry back in 2000 on Long Island, N.Y. Since then, the bake shop has been able to build a community of devoted consumer across the country. The growth of Tate’s has been undeniably successful which of course added to the sales data of the company. Most recently, it was reported that the figures quadrupled over the past five years.
“We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands.” Chief Executive Officer of Tate’s Maura Mottolese told reports. “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 Kathleen 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.”
Mondelez Fiscal Report
In other news, Mondelez has also recently released its first-quarter results for 2018. The report indicated positive results for its revenue and earnings. Both of these sectors exceeded market estimates during the said period. The positive data rooted from the optimistic results recorded in regions of Asia, Middle East & Africa and Europe.
During the period, The company’s adjusted earnings recorded 62 cents per share. This ultimately surpassed the estimated data of just 61 cents. More so, the adjusted earnings added 9.6% as well. This has generated from the favorable figures on interest and less number of shares outstanding.
Also, the net revenues of Mondelez generated 5.5 % during the period to $6.77 billion year-over-year. According to reports, the currency tailwinds factored to the revenue increase. Furthermore, the net revenues of the company saw a 7.6% upsurge in the first quarter. The Power Brands also experienced an 8.2% increase in revenues as well.
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