The company that makes Oreos is Mondelez International Inc (MDLZ.O). It announced Monday that it had agreed to sell Perfetti Van Melle Group its gum business. It will sell in the US, Canada, and Europe, including brands like Trident and Dentyne, for $1.35 billion.
The manufacturing facilities in Rockford, Illinois, and Skarbimierz, Poland, were formerly owned by Mondelez. They will also be purchased by Perfetti Van Melle, the European gum and confectionery manufacturer behind brands including Mentos, Alpenliebe, and Chupa Chups.
After demand suffered significantly during the COVID-19 lockdowns. Mondelez put its developed markets gum unit—including brands like Bubbaloo and Bubblicious—under strategic review.
The corporation declared that it would keep running its gum business outside North America, Western Europe, and Australia.
After making several acquisitions over the past year, Mondelez has been reorganizing its portfolio, intending to derive 90% of its revenue from its chocolate and biscuit divisions.
Earlier this year, the creator of Toblerone chocolate paid $2.9 billion to the energy bar manufacturer Clif Bar & Company. Additionally, it paid $2 billion to the Greek food company Chipita S.A.
The sale of Mondelez of its Frensch operations in not part of the agreement
According to Mondelez, the sale of its French operations is not part of the agreement. The agreement is anticipated to be finalized in the fourth quarter of 2023. It stated that the parties had made exclusive agreements for the sale of the company in the nation.
According to Mr. Van de Put, the business intends to expand and enhance its snack selection. It is, moreover, branching out into new categories, including “well-being snacks” like those produced by Hu Master Holdings, a producer of paleo chocolate bars. In addition, the company purchased the energy bar manufacturer Clif Bar & Co., the Greek food company Chipita SA, and the Mexican candy maker Ricolino earlier this year.
At the business’s investor day in May, Mr. Van de Put declared, “Snacking is here to stay.” He claimed that younger customers are driving the snacking trend. In addition, the snack categories have proven to be more resilient throughout recessions.
About 10% of Mondelez’s yearly sales in 2021 came from its gum and candy divisions. At the same time, 47% and 32% came from its biscuits and chocolate divisions, respectively. The company intends the chocolate and biscuit categories to account for 90% of revenues, Mr. Van de Put stated in May.
Ritz, Oreo, Triscuit, and other biscuit brands are included in the company’s portfolio of biscuit products. Moreover, its chocolate division sells brands like Cadbury and Toblerone.