MDLZ to Fuel Presence in Cakes & Pastries Market With Evirth Deal
Mondelez International, Inc. MDLZ is set to strengthen its position in the rapidly-growing cakes and pastries market with the acquisition of a majority stake in Evirth — a leading manufacturer in China. This acquisition aligns with MDLZ’s broader strategy to expand its footprint in the cakes and pastries segment, a key focus area alongside chocolate and biscuits.
Founded in 2013, Evirth specializes in frozen-to-chilled cakes and pastries. The company already holds a minority stake in Evirth, enabling it to leverage its iconic brands like Oreo and Philadelphia. The recent news enhances Mondelez's existing investment and positions it to meet the increasing demand for fresh, premium products, particularly among younger consumers in top-tier cities. The frozen-to-chilled cakes and pastries category in China is currently valued at $3 billion and is expected to register at a compound annual growth rate of approximately 15%.
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Unlocking Potential: MDLZ Boosts Its Baked Goods Offerings
With its partnership with Evirth, Mondelez aims to introduce innovative products and broaden distribution channels to capitalize on this growing market. With Mondelez’s expertise and Evirth’s robust distribution network, especially in club stores, this association is well-positioned to meet consumer demands. By integrating MDLZ’s brand experience and technical capabilities, Evirth is set to elevate its product offerings and provide consumers with a premium selection.
MDLZ has already achieved strong growth in cakes, pastries and baked snacks through its April 2020 acquisition of Give & Go, a leading North American manufacturer of frozen-to-fresh brownies, cookies and cupcakes. The January 2022 acquisition of Chipita Global SA, a fast-growing leader in croissants and baked rolls in Central and Eastern Europe, further expanded the company’s reach into new markets. These acquisitions underscore Mondelez’s commitment to growing its portfolio in the baked goods market.
The acquisition of Evirth is a pivotal step for Mondelez as it seeks to strengthen its position in a lucrative market. With a strong emphasis on quality and innovation, the company is set to become a leader in satisfying the changing tastes of consumers.
The Zacks Rank #3 (Hold) company’s shares have gained 8.6% in the past three months compared with the industry’s growth of 5.7%.
Top-Ranked Food Stocks
Here, we have highlighted three better-ranked food stocks — The Chef's Warehouse CHEF, Flowers Foods FLO and McCormick & Company, Inc. MKC.
The Chef’s Warehouse, which distributes specialty food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings each indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods, one of the largest producers of packaged bakery foods in the United States, currently carries a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings surprise of 1.9%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings suggests growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.1% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.
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McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
Flowers Foods, Inc. (FLO) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report