“There is more appetite for M&A and there is a clear strategy behind all the acquisitions”

“We have made $1.5bn in terms of revenue in terms of acquisitions for the last three years. These are growing at a high-single digit,”​ and while the pandemic caused some “restrictions and challenges,”​ broadly speaking, the newly acquired businesses are growing steadily above the average growth rate of Mondelez, Vince Gruber, executive VP and president of European Operations, said last week at the Deutsche Bank Global Consumer Conference.

“I see a lot of untapped opportunities in terms of distribution, in terms geographical expansion and in terms of new launches,”​ Gruber said, calling out specifically the opportunity presented by Mondelez’s most recent purchase of European snack maker Chipita SA for $2bn.

The deal, announced late last month, gives Mondelez a stronger foothold in the bakery segment, and specifically the cake and pastry category, which Gruber estimated to be worth $65m-$1bn globally.

“It’s a really big and quite fragmented market. What Chipita gives us is capability in the countries where they already operate, which is more the Eastern European market – expanding our footprint in those markets even stronger,”​ Gruber said, adding Mondelez intends to bring the brand to other markets where it isn’t currently available.

The Chipita purchase builds on Mondelez’s previous acquisition of Give & Go in the US, which Gruber characterized as the company’s “first step in this cake and pastry territory in the US.”

Ultimately, Gruber added, Chipita is “an entry ticket for us to play a new game in an adjacency, which is very relevant from a snacking point of view,”​ and expands into new dayparts with morning and lunch.

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