Premier Foods has secured an expanded licensing deal with Mondelēz International to produce Cadbury-branded cakes and ambient desserts.
Cadbury cakes are a major element of the cake portfolio of Mr Kipling owner Premier, and the company last month reported its core Cadbury cake range had increased UK volumes, sales and market share.
Cadbury cakes are also important to Premier’s overseas business, where they are performing well in Australia and, last year, launched into the United Arab Emirates.
Given the weak performance of Premier’s grocery brands – they drove a 3.1% year-on year decline in overall sales in Q1 this year (13 weeks ending 1 July) despite strong sales of its cakes division – the business will have been relieved to have signed the new deal.
Under the newly agreed partnership, which was first announced in May, the number of licensed countries has expanded from 10 to 46 and now includes South Africa, Canada, Japan, China and India.
Premier also has the option to use the full range of Cadbury brands in ambient cakes, including Flake, Crunchie, Caramel and Marvellous Creations.
The deal comes into effect tomorrow (1 September 2017) and runs until 2022, and Premier will have an option to extend it to 2025 if it meets certain performance targets.
“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,” said Premier chief executive Gavin Darby.
“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 Food’s international business.”
Mondelēz International northern Europe president Glenn Caton added: “The future is bright for Cadbury cakes and for the people who love them.”
Premier has a strong pipeline of NPD around the Cadbury brand, this year launching a range of Cadbury Tarts.
Mondelēz last year acquired the global licence for Cadbury-branded biscuits from Burton’s Biscuit Company.
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