The deal, confirmed today (August 31), will allow Premier Foods to produce Cadbury cakes in a further 36 countries, including China, India, Japan, Canada and South Africa.
Its previous deals with Mondelēz, which go back some 30 years, only gave the manufacturer licence to produce the cakes in 10 countries.
Premier Foods’ ceo Gavin Darby said: “Building on a relationship, which now spans over 30 years, we are delighted to have completed the signing of this new strategic global partnership with Mondelēz International, and we look forward to working with them in years to come.
‘Expanded scope of geographies’
“We are particularly pleased about the expanded scope of geographies and brands, given the opportunity this provides us to further accelerate the growth of Premier Foods’ International Business”.
The licence will run until 2022, with the option for a further three years, subject to meeting performance criteria, Premier Foods confirmed.
Premier Foods gained the potential to use the full range of Cadbury brands in its ambient cakes. That included the Oreo, Flake, Crunchie, Caramel and Marvellous Creations brands.
Mondelēz International was delighted to renew its partnership with Premier Foods.
Its president of Northern Europe, Glenn Caton, said: “We are very proud of our long term partnership with Premier Foods and are delighted to be continuing to work together to nurture and develop our well-loved portfolio of brands and products.
‘The future is bright’
“The future is bright for Cadbury cakes and for the people that love them.”
Both manufacturers set out the terms of the agreement in May. At the time, Premier Foods said the deal would allow its Wirral facility to expand in the future.
Cadbury Cakes have about 8.3% share of the UK’s £780M ($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’ Cadbury cake range includes Mini Rolls, Amaze Bites, cake bars and celebration cakes.
Meanwhile, in May, an industry expert told FoodManufacture.co.uk that the deal between Premier Foods and Mondelēz was a “no-brainer”.
Premier Foods’ Cadbury cake deal – at a glance
- Extended contract with Mondelēz to produce and market Cadbury cakes
- Deal to run until 2022
- Potential to extend deal for a further three years
- Gains access to further 36 countries – 46 in total