Mondelēz secures $2.9 billion deal for US-based Clif Bar & Company nutrition ranges
Global confectionery and snacks group Mondelēz International has agreed a key $2.9 billion deal acquiring US nutrition bar manufacturer Clif Bar & Company, reports Neill Barston.
The move, which also includes the Luna and Clif Kid brands, marks a significant expansion for the Chicago-headquartered business, as it continues a sustained pattern of upward growth.
Consequently, the snack bar interests of Mondelēz are now said to be worth a total of more than $1 billion, including its refrigerated Perfect Snacks, and British nutrition business Grenade, as the company seeks to advance its portfolio to include an enhanced better-for-you consumer offering.
As Confectionery Production reported, the business enjoyed strong fortunes at this year’s Sweets & Snacks Expo in the US (see next edition of the magazine), making continued inroads with its core Oreo brand, as well as extension of a number of its existing product ranges.
Dirk Van de Put, company chairman and CEO, believed its latest acquisition, which is expected to close in Q3 of 2022, would make a notable impact within the overall group portfolio.
He said: “We are thrilled to welcome Clif Bar & Company’s iconic brands and passionate employees into the Mondelēz International family.
“This transaction further advances our ambition to lead the future of snacking by winning in chocolate, biscuits and baked snacks as we continue to scale our high-growth snack bar business. As a leader and innovator in well-being and sustainable snacking in the U.S, Clif Bar & Company embodies our purpose to ‘empower people to snack right’ and we look forward to advancing this important work with Clif’s committed colleagues in the years ahead.”
The transaction is expected to be top-line accretive in year two and create cost synergies by using Mondelez International’s global and North American scale to expand Clif’s sales distribution and gain further penetration in existing and new customers and channels in the US.
“Mondelēz International is the right partner at the right time to support Clif in our next chapter of growth,” said Sally Grimes, Chief Executive Officer, Clif Bar & Company.
“Our purposes and cultures are aligned and being part of a global snacking company with broad product offerings can help us accelerate our growth while staying true to our deeply ingrained Five Aspirations – sustaining our people, planet, community, business, and brands – five bottom lines that have grounded our company since its founding and will remain our North Star going forward.”
Furthermore, the company noted that it will continue to operate the Clif Bar & Company business from its headquarters in Emeryville, CA, nurturing its entrepreneurial spirit and maintaining the brand’s purpose and authenticity. The company will also continue to manufacture its products in its facilities in Twin Falls, ID, and Indianapolis, IN.
The acquisition of Clif Bar & Company will build on Mondelēz International’s continued prioritisation of fast-growing snacking segments in key geographies. So far in 2022, Mondelēz International has announced an agreement to acquire Ricolino, Mexico’s leading confectionary company, from Grupo Bimbo and closed on its acquisition of Chipita, a leader in the Central and Eastern European snack-size cakes and pastries category.
This progress followed a year of strong global snacking growth in 2021, including the acquisitions of Grenade, a leading U.K. performance nutrition company; Gourmet Food Holdings, a leading Australian food company in the attractive premium biscuit and cracker category; and US-based Hu snacks business.