FDBusiness.com

Premier Foods has agreed to renew its strategic global partnership with Mondelēz International concerning the 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 Premier Foods 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. Premier Foods is already developing plans to launch Cadbury cake in two new significant markets in 2017/18.

Gavin Darby, chief executive of Premier Foods.

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 new agreement will build on Premier Foods’ 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 Premier Foods’ manufacturing facility in Moreton, on the Wirral, which is expected to grow in the future.

Gavin Darby, chief executive of Premier Foods, says:  “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.”