Mondelez offloads chewing gum assets in US, Canada and Europe to Perfetti Van Melle for $1.4 billion | News | Popgen Tech
Mondelez International has agreed to sell its chewing gum business to Mentos and Chupa Chups owner Perfetti Van Melle Group for $1.4bn (£1.2bn).
The deal includes only the business in developed markets (the US, Canada and Europe), with Mondelez retaining its gum holdings in emerging markets across Latin America, Asia, the Middle East and Africa.
The sale furthers the Cadbury owner’s strategy to accelerate growth and focus on its core portfolio in the chocolate, biscuits and baked snacks categories.
Manufacturing facilities in Illinois and Poland are included in the deal, along with gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the US, Canada and Europe, as well as European candy brands Cachou Lajaunie, Negro and La Vosgienne.
Mondelez will continue to operate its gum business outside of North America, Canada and Europe, led by Stride in China, as well as all of its other candy brands and products.
“As we continue to advance our ‘Vision 2030’ focus and acceleration strategy, and double down on our core snacks categories, we are delighted to transition our developed market gum business to a value-led, family-owned company whose portfolio ‘ is a strategic fit, and where our brands and people can thrive,” said Mondelez’s chairman and CEO, Dirk Van de Put.
Perfetti Van Melle added that the acquisition complemented its portfolio.
Vice Chairman Daniele Perfetti said: “Perfetti Van Melle will be an excellent home for the management team and employees of Mondelez International’s gum business in North America and Europe.
“We have long admired the product and brand portfolio of the chewing gum business and look forward to combining it with the Perfetti Van Melle brand family.”
Perfetti Van Melle manufactures and distributes sweets and chewing gum in more than 150 countries and owns the brands Mentos, Chupa Chups, Alpenliebe, Frisk, Smint, Fruit-tella, Golia, Brooklyn, Happydent, Vivident, Daygum, Vigorsol, Big Babol and Airheads.
The Italian-Dutch multinational reported group revenue of €2.5bn (£2.2bn) in 2021.
Mondelez’s ‘Vision 2030’ strategy aims to generate 90% of the group’s revenue in chocolate and biscuits, including baked snacks categories. Today, it makes 80% of sales from the core categories, compared to 59% in 2012.
The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2023. The definitive agreements cover the sale of the business in the US, Canada and Europe, excluding France. The parties entered into exclusive arrangements for the sale of the business in France.