Mondelēz acquires majority stake in Evirth, strengthening presence in China

CHINA – Mondelēz International, Inc. has agreed to acquire a majority stake in Evirth, a leading Chinese manufacturer specializing in frozen-to-chilled cakes and pastries.

This acquisition will allow Mondelēz to tap into the fast-growing US$3 billion cakes and pastries market in China, which is expected to grow at a compound annual rate of approximately 15% as consumer demand for premium, innovative snacks surges.

The transaction, contingent upon regulatory approvals, aligns with Mondelēz’s strategic focus on diversifying its portfolio beyond its core offerings of chocolate and biscuits.

Commenting on the acquisition, Dirk Van de Put, Chair and CEO of Mondelēz, expressed his optimism about the partnership.

“We’re excited about the opportunity to accelerate our growth in cakes and pastries through continuous innovation, leveraging our high-value brands to create more premium tastes and formats,” he said.

Evirth’s Chairman and Founder Linfeng Xu also voiced enthusiasm, noting that Mondelēz’s international reach and technical expertise will further elevate Evirth’s product quality and market reach.

“By bringing in Mondelēz’s brand experience, technical strength, and international network, Evirth can be better positioned to provide premium products for our customers and consumers,” he noted.

Evirth, founded in 2013, has established a robust distribution network across China and has been a pivotal partner in introducing innovative pastry products in club stores throughout the country.

With Mondelēz’s prior investments in Evirth, the Chinese company has already launched successful products under Mondelēz brands like Oreo and Philadelphia.

These efforts, coupled with Evirth’s research and development capabilities, have contributed significantly to its rapid growth in recent years.

Mondelēz’s acquisition of Evirth marks another step in its global expansion within the baked goods market.

Previous acquisitions, such as North American-based Give & Go in 2020 and Chipita Global SA in 2022, underscore Mondelēz’s commitment to broadening its footprint in baked goods.

Each acquisition has added diverse product offerings, from frozen-to-fresh cookies and cupcakes to croissants and rolls, strengthening the company’s presence in high-growth regions.

Embracing AI-driven content creation for marketing efficiency

In a parallel development, Mondelēz is set to enhance its marketing efforts through the launch of an in-house generative AI content creation platform.

Partnering with Accenture and Publicis Groupe, Mondelēz aims to roll out AI-generated marketing campaigns by early next year across markets, including the U.S., U.K., Germany, India, and Latin America.

“Our proprietary AI platform will soon serve as a central hub for generating content,” said Jon Halvorson, Senior Vice President of Consumer Experiences and Digital Commerce at Mondelēz.

The system will initially focus on performance marketing but is expected to scale to broader campaigns, including television ads.

Having already completed around 40 generative AI-driven campaigns, Mondelēz’s shift to AI is projected to streamline creative processes and boost return on investment.

Personalized marketing efforts have historically shown 20%-30% higher returns than non-personalized strategies, indicating strong potential for AI’s role in optimizing consumer engagement.

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