Premier Foods renews Cadbury cake deal
Premier Foods has renewed a licence deal with Mondelēz International to produce Cadbury cake and dessert products in a move that is set to unlock new growth opportunities for both companies.
The partnership is expected to unlock new growth opportunities in markets beyond the core territories of the UK, Ireland, Australasia and United Arab Emirates, bringing the total number of licenced countries to 46. New potential markets include South Africa, Canada, Japan, China, India, Asia Pacific, Caribbean and additional countries in the Middle East. The Company is already developing plans to launch Cadbury cake in two new “significant” markets in 2017/18.
It will also provide for the possibility, subject to approval, to use the full range of Cadbury brands such as Flake, Crunchie, Caramel and Marvellous Creations, as well as the Oreo brand, opening the door to further growth opportunities in cake in the UK and overseas.
Premier Foods CEO Gavin Darby, says, “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.”
Once finalised, the new licence will run until 2022, with an option for the company to extend this to 2025, subject to meeting certain performance criteria.
The strategic deal has been outlined in a detailed document known as ‘heads of terms’ which is then expected to be finalised in definitive agreements in the coming weeks.
Premier Foods CEO Gavin Darby, says, “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.”