Premier Foods plc Premier Foods Renews Relationship with Mondelez (4260E)
May 08 2017 - 2:04AM
UK Regulatory
TIDMPFD TIDMIRSH
RNS Number : 4260E
Premier Foods plc
08 May 2017
For immediate release
Premier Foods plc
8 May 2017
Premier Foods plc ("the Company")
PREMIER FOODS AGREES RENEWED RELATIONSHIP WITH MONDEL Z
INTERNATIONAL FOR STRATEGIC GLOBAL PARTNERSHIP FOR CADBURY CAKE
Premier Foods today announces it has signed 'Heads of Terms' for
a strategic global partnership with Mondelēz International to renew
the Company's long-standing licence to produce and market Cadbury
branded cake and ambient dessert products. Once finalised, the new
licence will run until 2022, with an option for the Company to
extend this to 2025, subject to meeting certain performance
criteria.
The partnership is expected to unlock new growth opportunities
in an exciting range of markets beyond the core licenced
territories of the UK, Ireland, Australasia and United Arab
Emirates bringing the total number of licenced countries to 46. New
potential markets include South Africa, Canada, Japan, China,
India, Asia Pacific, Caribbean and additional countries in the
Middle East. The Company is already developing plans to launch
Cadbury cake in two new significant markets in 2017/18.
In addition, the partnership will provide for the possibility,
subject to approval, to use the full range of Cadbury brands such
as Flake, Crunchie, Caramel and Marvellous Creations, as well as
the Oreo brand, opening the door to further growth opportunities in
cake in the UK and overseas.
The strategic deal has been outlined in a detailed document
known as 'Heads of Terms' which is then expected to be finalised in
definitive agreements in the coming weeks and builds on the
Company's successful relationship with Mondelēz International and
Cadbury established for over 30 years. In recent years, Cadbury
cakes have seen impressive growth in the UK and Australia and have
also been launched in the UAE. Over one million Cadbury Mini Rolls
are now being produced every day at the Company's manufacturing
facility in Moreton, on the Wirral, which is expected to grow in
the future.
Commenting on the renewed relationship, Gavin Darby, Chief
Executive Officer, Premier Foods said:
"I'm delighted we're entering into a new long-term global
partnership with Mondelēz International which will unlock exciting
new growth opportunities for both partners.
This will give us a great platform to invest in developing the
Cadbury cake brand in the UK and around the world and represents a
major boost to our fast growing International business.
The new global partnership is good news for our colleagues and
good news for British exports."
Glenn Caton, President of Northern Europe, Mondelēz
International added:
"We are very proud of our long term partnership with Premier
Foods and look forward to continuing to work together to nurture
and develop our well-loved portfolio of brands and products. The
future is bright for Cadbury cakes and for the people that love
them."
For further information please contact:
Richard Godden, Head of Investor +44 (0) 1727
Relations 815 850
Richard Johnson, Corporate Affairs +44 (0) 1727
Director 815 850
+44 (0) 1727
Maitland 815 850
Kate O'Neill
Tom Eckersley
Additional Notes
1. This agreement in principle is based on a detailed set of
non-binding Heads of Terms. In the coming weeks the parties intend
to work together to conclude binding definitive agreements.
2. The commercial terms of these arrangements are not disclosed.
3. Cadbury cakes have an estimated 8.3% share of the GBP1,013
million ambient cake market in the UK and have grown sales value
19.5% in the last two years (source: IRI Grocery outlets 52 weeks
ending 22 April 2017)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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