Last updated on May 15th, 2018 at 03:26 pm
Mondelēz International has signed an agreement with global private equity firm The Riverside Co. and other shareholders—including Tate’s Bake Shop founder Kathleen King—to acquire Tate’s for nearly $500 million. Mondelēz says the deal gives it entree into the premium cookie market.
Tate’s was founded in 2000 on Long Island, New York, producing cookies and baked goods. Mondelēz says Tate’s is well known for its signature thin-and-crispy cookies with authentic, high-quality ingredients.
Mondelez added that Tate’s has been one of the fastest-growing biscuit brands in the U.S. over the last 12 months, and the brand’s sales have quadrupled over the past five years. Just this year, retail sales in measured channels have grown by more than 40 percent through March.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, chairman and CEO of Mondelēz, headquartered in Deerfield, Illinois. “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.”
Maura Mottolese, Tate’s Bake Shop CEO, said, “We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands. 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.”
Mondelēz International will operate Tate’s as a separate, standalone business and will provide resources to accelerate its growth. Tate’s Bake Shop senior leadership will continue to run the Tate‘s business from its headquarters on Long Island, including its Bake Shop located in Southampton, New York.
Tate’s will continue to produce all products at its current manufacturing facility.
The acquisition is expected to close during the summer of 2018.
Tate’s Bake Shop founder Kathleen King began selling small batches of her crisp, buttery, chocolate chip cookies at her family’s farmstead at the age of 11. Tate’s Bake Shop products are available at grocery stores, gourmet shops and natural food stores nationwide, as well as online at tatesbakeshop.com.
Mondelēz International had 2017 net revenues of approximately $26 billion and does business in approximately 160 countries, Its brands are in the biscuits, chocolate, gum, candy and powdered beverages categories. They include Oreo and belVita biscuits; Cadbury Dairy Milk and Milka chocolate; and Trident gum.
