USA – American multinational confectionary and snack food company, Mondelēz International, has announced a divestiture of its developed-market gum businesses to Perfetti Van Melle Group.
Perfetti Van Melle is one of the world’s largest manufacturers and distributors of confectionery and chewing gum, operating in more than 150 countries globally.
The company produce a wide range of popular confectionery products and chewing gum brands including Mentos, Chupa Chups, Alpenliebe, Center Fruit, Bubbaloo, Fruit-tella, and Big Babol.
Mondelēz which owns popular sandwich cookie brand Oreo sandwich revealed that the deal includes it’s business in the United States, Canada, and Europe, except for Portugal.
The company disclosed that the sale of the Portugal gum business is on hold as they await regulatory clearance from the Portuguese Competition Authority, which the two companies expect will be finalized soon.
The two companies have agreed that once the regulatory approval has been granted, the Portugal portion of the business will be sold and transferred to Perfetti Van Melle Group.
The developed-gum business sales are part of Mondelēz ‘s long-term strategy to accelerate growth and focus the portfolio on attractive chocolate, biscuits, and baked snacks categories.
“Building on our category leadership, favorable geographic footprint, and the power of our iconic brands, we are well positioned for stronger growth in the decade ahead,” said Dirk Van de Put, Chairman and CEO, of Mondelēz International
On his part, Egidio Perfetti, Chairman of Perfetti Van Melle Group expressed optimism in this new venture.
“This acquisition aligns perfectly with our strategic goal of becoming a global leader in gum, our chosen focus,” Pefetti said.
“We expect to further bolster our product portfolio, manufacturing capacity, market distribution, and financial results, effectively doubling our size in North America and increasing our reach in Europe, serving more consumers with our well-loved brands.”
Mondelēz International has been keen on reshaping its portfolio, with a long-term vision to accelerate growth and generate 90% of revenue in chocolate and biscuits, including baked snacks.
With chocolate and biscuits being attractive and historically durable categories in both developed and emerging markets, the company foresees a significant headroom to increase penetration and per capita consumption.
“Consistent delivery against our financial commitments, investment in the long-term health of our brands, and the capabilities of our people – combined with our key competitive advantages – position us well to create significant value for our stakeholders,” noted Luca Zaramella, Mondelēz International, Chief Financial Officer.
The company foresees success in driving value through organic growth and targeted acquisitions that expand its presence in chocolate, biscuits, and baked snacks by filling geographic gaps and extending into under-represented segments and price tiers.
