Driven by Cadbury biscuits, which are made by Burton’s under licence, the tie-up would generate $100M (£66.8M) in the medium term, it has claimed.
The deal supported the biscuit firm’s international expansion plans for the $548M (£366.4M) US premium cookie sector, which accounted for 12% of total US cookie sales, it said. IFA would be able to draw on its supply chain network to deliver products quickly and efficiently.
Cadbury Fingers
Burton’s Cadbury Fingers product range has been adapted for US consumers to include Milk Chocolate, Dark Chocolate and Salted Peanut Crunch varieties.
“With a $548M market opportunity in the US, this partnership is a crucial springboard for future growth,” said Stephen Carson, director of international business development at Burton’s.
“While our existing international presence has built an awareness of Burton’s products, our renewed focus will build our global marketplace and drive success.”
IFA president Don Cook added: “Working with a longstanding British brand, we’re confident our retailer network will respond well to Burton’s iconic products.”
Invest £5M
In the UK, Burton’s announced in January that it would invest £5M in its Blackpool factory to boost capacity. That followed plans it revealed in May last year to pump £15M into savoury snacks production.
The company is the second largest UK biscuit supplier in the UK, making branded and own-label biscuits. It owns and bakes market-leading brands such as Maryland Cookies, Jammie Dodgers and Wagon Wheels.
The business has its headquarters in St Albans and operates manufacturing sites in Blackpool, Edinburgh, Llantarnam, and a chocolate refinery in Moreton, employing more than 2,000 people.
IFA is based in Irving, Texas, and manages aspects such as sales, marketing, category management and logistics for customers including Clipper tea, Dorset Cereals and Mrs. Crimble’s.