Chewing gum brand Trident has been sold by Mondelez International Inc. alongside other gum brands, including Dentyne, for a reported $1.35 billion. The confectionery company has stated that the sale was motivated by a shift in focus to chocolate and snacks partly prompted by an increase in demand seen throughout the pandemic. Mondelez stated that a 15-year multiple of gross earnings was used to calculate the sale figure.
Perfetti Van Melle Group, which has made the purchase, are a confectionary and gum company boasting a portfolio of brands, including Mentos and Alpenliebe. As the Covid-19 pandemic saw an increase in remote working, sales of snacks and confectionery items increased throughout 2020 and 2021. However, buying patterns around gum decreased as the use case for the product became less relevant to consumers during the pandemic.
This sale follows a strategy the company outlined in May this year, in which Mondelez defined its focus on a central selection of confectionary items. The stability and growth seen in this sector help to explain Mondelez’s focus. At the time, company CEO Dirk Van de Put explained this strategy involved exiting markets that did not fit this strategy. This has led to gum brands being included in the recent sale alongside a decision to sell cough sweet brand Halls.
Van de Put explained that the main factors motivating this strategy include the resiliency of the confectionery market and purchasing habits of younger demographics. This demographic focus has also led the company to look towards health-food snacks, including energy food company Clif Bar & Co. and paleo snack producer Hu Master Holdings.
In 2021, the core areas of Mondelez’s new strategy made up almost 80% of their sales, whereas chewing gum brands only accounted for 10%. Offloading these gum brands, the strategy included aims to increase chocolate and biscuit sales to 90% of the company’s annual sales. With established brands such as Oreo, Ritz, Cadbury and Toblerone, Mondelez’s portfolio places the company in a strong position to build within a stable market.
Mondelez’s deal with Italian-Dutch food company Perfetti Van Melle is reported to close towards the end of 2023, covering markets in the US and Canada. The deal will also cover Europe with the exception of France, where the organisations have reached a separate arrangement. The completion of the sale will mark a shift in focus for Mondelez to higher resiliency markets as Perfetti Van Melle hopes to capitalise on renewed gum sales following the pandemic.
Chewing gum brand Trident has been sold by Mondelez International Inc. alongside other gum brands, including Dentyne, for a reported $1.35 billion. The confectionery company has stated that the sale was motivated by a shift in focus to chocolate and snacks partly prompted by an increase in demand seen throughout the pandemic. Mondelez stated that a 15-year multiple of gross earnings was used to calculate the sale figure.
Perfetti Van Melle Group, which has made the purchase, are a confectionary and gum company boasting a portfolio of brands, including Mentos and Alpenliebe. As the Covid-19 pandemic saw an increase in remote working, sales of snacks and confectionery items increased throughout 2020 and 2021. However, buying patterns around gum decreased as the use case for the product became less relevant to consumers during the pandemic.
This sale follows a strategy the company outlined in May this year, in which Mondelez defined its focus on a central selection of confectionary items. The stability and growth seen in this sector help to explain Mondelez’s focus. At the time, company CEO Dirk Van de Put explained this strategy involved exiting markets that did not fit this strategy. This has led to gum brands being included in the recent sale alongside a decision to sell cough sweet brand Halls.
Van de Put explained that the main factors motivating this strategy include the resiliency of the confectionery market and purchasing habits of younger demographics. This demographic focus has also led the company to look towards health-food snacks, including energy food company Clif Bar & Co. and paleo snack producer Hu Master Holdings.
In 2021, the core areas of Mondelez’s new strategy made up almost 80% of their sales, whereas chewing gum brands only accounted for 10%. Offloading these gum brands, the strategy included aims to increase chocolate and biscuit sales to 90% of the company’s annual sales. With established brands such as Oreo, Ritz, Cadbury and Toblerone, Mondelez’s portfolio places the company in a strong position to build within a stable market.
Mondelez’s deal with Italian-Dutch food company Perfetti Van Melle is reported to close towards the end of 2023, covering markets in the US and Canada. The deal will also cover Europe with the exception of France, where the organisations have reached a separate arrangement. The completion of the sale will mark a shift in focus for Mondelez to higher resiliency markets as Perfetti Van Melle hopes to capitalise on renewed gum sales following the pandemic.
