MDLZ to Fuel Presence in Cakes & Pastries Market With Evirth Deal

Core Insights - Mondelez International, Inc. (MDLZ) is acquiring a majority stake in Evirth, a leading manufacturer in China's cakes and pastries market, to strengthen its position in this rapidly growing segment [1] - The frozen-to-chilled cakes and pastries category in China is valued at $3 billion and is projected to grow at a compound annual growth rate of approximately 15% [1] - The partnership with Evirth aims to introduce innovative products and broaden distribution channels, leveraging Mondelez's expertise and Evirth's robust distribution network [2] Company Strategy - The acquisition of Evirth aligns with Mondelez's broader strategy to expand its footprint in the cakes and pastries segment, which is a key focus area alongside chocolate and biscuits [1] - Mondelez has previously expanded its baked goods portfolio through acquisitions, including Give & Go in April 2020 and Chipita Global SA in January 2022, demonstrating its commitment to growth in this market [3] - The company emphasizes quality and innovation to meet the changing tastes of consumers, positioning itself as a leader in the baked goods market [3] Market Performance - Mondelez's shares have gained 8.6% in the past three months, outperforming the industry growth of 5.7% [3]