By Kevin Haas
Rock River Current
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LOVES PARK — Mondelēz International has agreed to sell its developed-market gum business, including its plant along Forest Hills Road, to the maker of Mentos and other candy for $1.35 billion, the company announced today.
Perfetti Van Melle Group, a gum and confectionery maker, will take over the gum business in the United States, Canada and Europe. The sale is part of a plan for Mondelēz to focus on cookies, snack bars, biscuits and other baked snacks.
“As we continue progressing our Vision 2030 focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed-market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive,” Dirk Van de Put, chairman and CEO of Mondelēz International, said in a news release.
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Mondelēz employs about 280 people at its plant at 5500 Forest Hills Road, according to the Rockford Area Economic Development Council.
Perfetti Van Melle’s portfolio includes brands such as Mentos, Chupa Chups and Alpenliebe. It will now take control of well-known brands from Mondelēz such as Trident and Dentyne, Chiclets, Bubbaloo and Bubblicious
“Perfetti Van Melle will be an excellent home for the management team and employees of Mondelēz International’s gum business in North America and Europe,” Egidio Perfetti, chairman of Perfetti Van Melle Group, said in a news release. “We have long admired the product and brand portfolio of the gum business and look forward to combining them with the Perfetti Van Melle brand family.”
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Mondelēz International’s strategy is to generate 90% of revenue in chocolate and biscuits, including baked snacks. That’s up from 59% in 2012 and 80% today.
Mondelez said it will continue to operate its gum business outside of the U.S., Canada and Europe. That includes its Stride brand in China.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas or Instagram @thekevinhaas.