Mondelēz International will acquire Long Island, N.Y.-based Tate’s Bake Shop for $500 million.
Known for its signature thin-and-crispy cookies made with simple, high-quality ingredients, Tate’s is a fast-growing premium cookie and baked goods brand. Founded in 2000 by Kathleen King, Tate’s has cultivated a devoted consumer following across the country. The brand’s sales have quadrupled over the past five years. In 2018, retail sales in measured channels have grown by more than 40 percent through March.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, Mondelēz chairman and ceo. “With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast-growing premium cookie segment. Tate’s has demonstrated exceptional and very profitable growth, and we look forward to working with the Tate‘s management team to expand distribution and build upon that success.”
Tate’s Bake Shop CEO Maura Mottolese said the company is “thrilled and humbled” to join Mondelēz’s brand portfolio.
“Consistent with Mondelēz International’s purpose to create more moments of joy for consumers, providing an authentic, delicious indulgence has been at the heart of Tate’s Bake Shop since Kathleen first opened her storefront nearly two decades ago,” she said. “Now, together with Mondelēz International, we’ll have the opportunity to take Tate’s to the next level and offer our cookies and baked treats to many more consumers across North America.”
Mondelēz International will operate Tate’s as a separate standalone business to maintain authenticity of the brand while providing resources to accelerate growth. Tate’s Bake Shop senior leadership will continue to run the business from its headquarters on Long Island, including its Bake Shop located in Southampton. Tate’s will continue to produce all products at its current manufacturing facility.
Subject to customary closing conditions, the transaction is expected to close this summer.
