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Mondelēz to acquire Chinese bakery brand Evirth

Snack manufacturer Mondelēz International has expanded its global reach with its recent agreement to acquire a majority stake in Evirth, one of China's leading producers of pastries and frozen-to-chilled cakes.

Mondelēz International, with a portfolio of well-known brands such as Cadbury, Oreo, Toblerone, Milka, Clif Bar, and Ritz, continues to strengthen its global presence in the food market with strategic acquisitions. In its latest move, the company has signed an agreement to acquire a majority stake in Evirth.

Prior to the acquisition announcement, Mondelēz held a minority stake in Evirth and had been working closely with the company to develop, manufacture, and supply products, including the Oreo and cream cheese brand Philadelphia.

Founded in 2013, Evirth is recognised as one of China’s leading players in the frozen-to-chilled cakes and pastries market and, despite only being in operation for just over a decade, the company has built a reputation for itself in China.

Evirth’s product portfolio includes offerings such as mille crepe cakes, mousse cakes, swiss cake rolls, cheesecakes, daifuku (mochi with a filling), snowy mooncakes, among others. The company distributes these products across a variety of networks, from membership clubs to retail and catering chains, to new media retailers across China.

Investment aligns with Mondelēz’s existing product lines

The investment in Evirth aligns with Mondelēz’s existing product lines. Through this acquisition, the company has positioned itself to be ready to deliver higher-end product formats that appeal to the evolving consumer demand — the consumer base of baked goods in China, notably predominantly young (born after 1980) and female (65%), are increasingly gravitating towards premium, fresh baked goods.

While Chinese consumers generally under-index the global average of snacks and sweet treats consumption, the main driver behind the nation's snack purchases is taste, according to Innova Markets Insights. These consumer preferences are reflected in China's growing market for high-quality baked goods, estimated at $3 billion with a compound annual growth rate (CAGR) of 15%.

Evirth’s product portfolio and expertise in premium cakes and pastries are already aligned with this trend, which Mondelēz said will enable the company to launch new Oreo and Philadelphia-branded products for the Chinese market, further expanding its reach.

Acquisition will utilise Evirth’s R&D capabilities

Mondelēz's chair and CEO, Dirk Van de Put, highlighted how the acquisition will enable the company to take advantage of Evirth’s R&D capabilities, brand experience, and market expertise. He said: “We’re excited about the opportunity to accelerate our growth in cakes and pastries through continuous innovation, leveraging our high-value brands to create more premium tastes and formats.”

Linfeng Xu, chairman and general manager of Evirth, expressed excitement about Mondelēz’s increased investment, adding: “By bringing in Mondelēz's brand experience, technical strength, and international network, Evirth can be better positioned to provide premium products for our customers and consumers.”

A brief overview of Mondelēz’s recent activities to expand its portfolio

Mondelēz’s agreement to acquire a majority stake in Evirth follows and precedes several strategic moves the company has taken since 2020 to expand its portfolio.

In April 2020, Mondelēz acquired North American company Give & Go, a producer of frozen-to-fresh baked goods such as brownies, cupcakes, and cookies. In 2021 Mondelēz acquired a further three companies, adding to its growing expansion of snacking brands: Grenade, a UK performance nutrition company; Gourmet Food Holdings, an Australian food company specialising in premium biscuit and crackers; and US-based well-being snacking company, Hu.

A year later, in 2022, the company acquired the Greek company Chipita Global SA, specialising in croissants and other baked snacks in Central and Eastern Europe.

In January 2023, in another strategic move to focus on its core categories of chocolate, biscuits, and baked snacks, Mondelēz divested its gum business in developed markets, selling to Perfetti Van Melle.

In July 2024, the company expanded its presence in emerging markets with a $5 million investment in its Pakistan subsidiary. This move highlighted Mondelēz’s focus on localisation and expansion of its production capabilities in key growth regions across Asia. “The $5 million investment will prioritise localisation efforts, enhancing production capacity while maintaining high-quality standards,” a spokesperson for Mondelēz International told Ingredients Network.

In its most recent announcement, on October 1, 2024, Mondelēz’s corporate venture capital arm, SnackFutures Ventures, has invested a minority stake in Urban Legend, a UK-based doughnut startup. Founded in 2021, the startup, specialising in better-for-you snacking options, has gained attention for its patented air frying technology, which results in a reduced fat and sugar doughnut, cutting calories by 30 to 75% compared to traditional doughnuts.

This latest move aligns with Mondelēz’s broader intention to lean into the market for better-for-you bakery products. Alongside acquiring Evirth, these ventures indicate the company’s growing focus on catering to the changing consumer, who is increasingly interested in healthy and fresh yet indulgent snacks.