Oreo owner buys Tate's Bake Shop for $500 million
Mondelez International based in Deerfield today said it is buying Tate's Bake Shop for about $500 million.
Known for its signature thin-and-crispy cookies with simple, authentic, high-quality ingredients, Tate's is a fast growing, premium cookie and baked goods brand.
Founded in 2000 on Long Island, New York, Tate's has cultivated a devoted consumer following across the country. With a strong founder story and on-trend products, Tate's has been one of the fastest growing biscuit brands in the U.S. over the last 12 months. The brand's sales have quadrupled over the past five years. In 2018, retail sales in measured channels have grown by more than 40 percent through March.
Mondelez International makes biscuits, chocolate, gum candy and powdered beverages and known for brands including Oreo, belVita biscuits; Cadbury Dairy Milk and Trident gum.
"Tate's is a great strategic fit that will complement our portfolio of beloved snacks brands," said Chairman and CEO Dirk Van de Put. "With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast growing premium cookie segment."
"We're thrilled and humbled to be joining a portfolio of some of the world's most well-known and successful snacking brands," said Maura Mottolese, CEO of Tate's Bake Shop. "Consistent with Mondelez International's purpose to create more moments of joy for consumers, providing an authentic, delicious indulgence has been at the heart of Tate's Bake Shop since Kathleen first opened her storefront nearly two decades ago."
Mondelez International will operate Tate's as a separate stand-alone business to nurture its entrepreneurial spirit and maintain the authenticity of the brand while providing resources to accelerate growth. Tate's Bake Shop senior leadership will continue to run the Tate's business from its headquarters on Long Island, including its Bake Shop located in Southampton. Tate's will continue to produce all products at its current manufacturing facility.
The acquisition is subject to customary closing conditions and is expected to close during the summer of 2018.