The deal allowed Mondelēz to manufacture, market and sell Cadbury-branded biscuits, including Cadbury Fingers and Cadbury Animals. Burton’s Biscuit said the sale would allow it to grow in other areas of the sector.
Cadbury-branded biscuits will continue to be manufactured in Burton’s factories after the two companies agreed a co-manufacturing agreement.
‘Invest in innovation’
A Burton’s statement said: “The sale will enable Burton’s to implement a transformational growth plan across its core brands, including Maryland, Jammie Dodgers, Wagon Wheels and Fish’n’Chips, and continue to invest in innovation to grow.
“It will also support Burton’s ambition to be the No.1 manufacturer of premium branded and [own-label] biscuits and snacks, and continue to grow its contract manufacturing business.”
Mondelēz Europe president Hubert Weber said: “Ownership of the Cadbury biscuits licence offers us exciting opportunities to accelerate global growth and innovation, as we expand our leading position in biscuits, globally and in Europe.
“The transaction will help us to unify and expand our global Cadbury biscuits portfolio in key markets and enable us to explore delicious new products by using the best of our chocolate and biscuit innovation platforms.”
‘£200M’
A potential deal between the two companies was reported last month. Mondelēz International offered Burton’s about £200M for the Cadbury licence, according to Sky News.
At the time, financial consultancy Rollits partner Julian Wild told FoodManufacture.co.uk: “It doesn’t particularly surprise me. I don’t know what has spurred [the deal] but it always struck me as surprising that they [Burton’s] had those products licenced long term.”
Mondelēz first made an approach for the Cadbury licence two years ago, after Burton’s failed attempt to acquire United Biscuits.
Cadbury biscuit licence sale – at a glance
- Mondelēz International buys licence from Burton’s Biscuit Company
- Cadbury biscuits continue to be made in Burton’s factories.
- Suspected £200M deal