Premier Foods extends relationship with Mondelēz International
Premier Foods has signed the 'Heads of Terms' for a strategic global partnership with Mondelēz International to renew the company's long-standing licence to produce and market Cadbury-branded cake.
The British food manufacturer has also extended the geographic reach of the licensing agreement with Mondelēz to 46 countries, including the UK, Ireland, Australasia, United Arab Emirates, South Africa, Canada, Japan, China, India, Asia Pacific, Caribbean and additional countries in the Middle East.
The new licence will run until 2022, with an option for the company to extend this to 2025, subject to meeting certain performance criteria.
"I'm delighted we're entering into a new long-term global partnership with Mondelēz International which will unlock exciting new growth opportunities for both partners. This will give us a great platform to invest in developing the Cadbury cake brand in the UK and around the world and represents a major boost to our fast growing international business,” Gavin Darby, ceo, Premier Foods said.
In recent years, Cadbury cakes have seen impressive growth in the UK and Australia and have also been launched in the UAE.
Over one million Cadbury Mini Rolls are now being produced every day at the Premier Foods manufacturing facility in Moreton, on the Wirral, which is expected to grow in the future.
Cadbury cakes have an estimated 8.3pc share of the £1bn ambient cake market in the UK and have grown sales value 19.5pc in the last two years.
Premier Foods owns many household brands including Oxo, Bisto, Mr Kipling, and Batchelors.