Mondelēz expands into ‘new on-trend consumer spaces’ with indulgent nibble of two-bite brownie owner

26-Feb-2020 - Last updated on 26-Feb-2020 at 10:10 GMT

Give & Go says it constantly innovates to create 'wow' products. Pic: Give & Go

Mondelēz International is expanding into the bakery category with a $1.2bn acquisition of a majority stake of Give & Go Prepared Foods Corp from private equity firm Thomas H. Lee Partners.

Toronto-based Give & Go – founded in 1989 – distributes products to the instore bakeries of retailers across North America.

It’s best known in Canada for its Two-Bite brand – which makes brownies, cupcakes and other baked goods – but also owns all-natural dessert brand Mason St. Bakehouse, cupcake brand Kimberley’s Bakehouse, Worth Crumb pastries and cookie and gingerbread decorating kit brand Create-a-Treat.

Glen Walter, EVP and president for North America, Mondelēz, said the move is part of the confectionery giant’s strategy to establish itself in different areas of the snacking category beyond confectionery and packaged snacks.

“Give & Go’s leading position in the large and fast-growing in-store bakery channel gives us a unique opportunity to expand into new, on-trend consumer spaces,” he said.

“Similar to our recent acquisitions of Perfect Snacks and Tate’s Bake Shop, this is yet another great example of our bolt-on acquisition strategy to establish foundations in faster growing snacking adjacencies.”

As with those operations, Give & Go will continue to operate separately, run by Give & Co’s current leadership team.

The Oreo owner said the deal is expected to close in the second quarter of the year.

Thomas H. Lee Partners bought Give & Go in 2016 from Omers Private Equity.