Premier Foods-Mondelez Cadbury cake partnership goes global
01 Sep 2017 --- Premier Foods has completed the signing of a strategic global partnership with Mondelez International to renew the company’s long-standing license to produce and market Cadbury branded cake and ambient dessert products. The new partnership is effective from today (September 1) and follows the signing of a “Heads of Terms” agreement with Mondelez International back in May. It runs until 2022 with an option to extend until 2025, subject to meeting certain performance criteria.
But the scope of the initial agreement has also been extended from the original ten countries to include a total of 46 countries, including South Africa, Canada, Japan, China and India, among others.
Another extension is the potential to use the full range of Cadbury brands in ambient cakes such as Flake, Crunchie, Caramel and Marvellous Creations in addition to the Oreo brand.
“Building on a relationship which now spans over 30 years, we are delighted to have completed the signing of this new strategic global partnership with Mondelez International and we look forward to working with them in years to come,” says Gavin Darby, Chief Executive Officer, Premier Foods.
“We are particularly pleased about the expanded scope of geographies and brands, given the opportunity this provides us to further accelerate the growth of Premier Food’s International Business.”
Glenn Caton, President of Northern Europe, Mondelez International also welcomed the ongoing partnership.
“We are very proud of our long term partnership with Premier Foods and are delighted to be continuing to work together to nurture and develop our well-loved portfolio of brands and products. The future is bright for Cadbury cakes and for the people that love them,” he says.
Meanwhile, in other Mondelez news, the billionaire chairman and chief executive officer of Berkshire Hathaway Inc., Warren Buffet has reportedly sent the snack giant’s shares into a spin – down by 3.6 percent to $40.39 earlier this week.
There has been speculation that Kraft Heinz will go after another large consumer products company ever since its failed attempt to acquire Unilever earlier this year, with some claiming it could set its sights on Mondelez.
But when Buffett was asked about recently, he told US news channel, CNBC: “I think the answer is 'no' on that.”
His company, Berkshire is the largest shareholder in KraftHeinz and controls the company along with private equity firm 3G Capital.
