Premier Foods in new Cadbury deal with Mondelēz

Premier Foods agreed a new deal with Mondelēz International for the Cadbury brand

Premier Foods will forge a renewed five-year partnership with Mondelēz International to continue producing and marketing Cadbury branded cakes and ambient desserts until 2022, it revealed today (May 8).

Renewing the 30-year partnership will unlock new growth opportunities in the UK, Republic of Ireland, Oceania and United Arab Emirates, bringing the total number of licensed countries to 46, said the manufacturers in a joint statement. They also said the deal – which could be extended until 2025 – would allow its Wirral facility to expand in the future.

Premier Foods ceo Gavin Darby said: “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.

‘A great platform to invest’

“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. The new global partnership is good news for our colleagues and good news for British exports.”

Premier Foods will be given approval by Mondelēz to use the full range of Cadbury brands, should the partnership be confirmed. The deal was expected to be confirmed in the coming weeks, after the manufacturers agree on the partnership’s details, Premier Foods said.

Premier Foods’s Cadbury cake deal – at a glance
  • Renews deal with Mondelēz to produce and market Cadbury cakes
  • Deal to last until 2022
  • New growth opportunities
  • Wirral facility to expand

The partnership opens the door to new markets, including South Africa, Canada, Japan, China and India, Premier Foods revealed. It was already developing plans to launch in two new markets this financial year, it added.

‘Nurture and develop’

Mondelēz International president of northern Europe Glenn Caton said: “We are very proud of our long-term partnership with Premier Foods, and look forward to 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.”

Cadbury cakes have about 8.3% share of the UK’s £1bn ambient cake market, according to IRI Grocery data. Sales value in Cadbury cakes increased 19.5% over the past two years, it said.

Premier Foods’s Cadbury cake range includes Mini Rolls, Amaze Bites, cake bars and celebration cakes.

Meanwhile, the deal between Premier Foods and Mondelēz was a “no-brainer”, an industry expert told FoodManufacture.co.uk. See the box below for more information.

 

Premier Foods/Mondelēz partnership a ‘no-brainer’: industry expert

“This deal strikes me as a no-brainer and I am not surprised that they have moved from a rolling annual deal to a five-year agreement. Mondelēz has no interest in producing cakes or ambient desserts under the Cadbury brand, so they are pleased to have the royalties. On the other hand, these are core products for Premier Foods, and they would not want to lose the licence. But, having done a pretty good turnaround job on Premier Foods from the darkest, debt-ridden days following [former ceo] Robert Schofield’s reign, I don’t really see where Gavin Darby goes now. Premier Foods still looks like ‘yesterday’s news’, with very limited growth potential. Hard to see why anyone would want to invest in it.”

  • Industry expert

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