Milling & Baking News - June 28, 2022 - 11

Mondelez to scale bar business
with $2.9 billion deal for Clif Bar
CHICAGO - Mondelez International, Inc.
is acquiring Clif Bar & Co., Emeryville,
Calif., for $2.9 billion. The acquisition
includes the Clif, Luna and Clif Kid brands
as well as manufacturing facilities in
Twin Falls, Idaho, and Indianapolis.
Once the acquisition is complete, Mondelez
International plans to incorporate
its Perfect Snacks and Grenade nutrition
business with Clif Bar and will form a
business unit with more than $1 billion in
sales. While primarily known as a bars
business, Clif entered the ready-to-eat
cereal category in the summer of 2021 and
purpose and authenticity, according to
Mondelez International.
" Mondelez International is the right
partner at the right time to support Clif
in our next chapter of growth, " said
Sally Grimes, CEO of Clif Bar & Co. " Our
purposes and cultures are aligned, and
being part of a global snacking company
with broad product offerings can help us
accelerate our growth while staying true
to our deeply ingrained five aspirations
- sustaining our people, planet, community,
business and brands - five bottom
lines that have grounded our company
business model guided by the five aspirations.
In
a June 21 report issued by Credit
Suisse, analyst Robert Moskow expressed
the view that the Crawfords " wanted to
exit at a time when valuations are still
attractive and also sell to a buyer that has
a good reputation for respecting the independence
and culture of mission-based
businesses after they buy them. "
" At our Credit Suisse HALO conference,
the founder of the health and wellness
brand Hu had very positive things to say
about CEO Dirk Van de Put and the way
that Mondelez has treated employees at
Hu after acquiring it in 2021, " Mr. Moskow
said.
This is Mondelez International's ninth
acquisition since 2018. Earlier this year
the company agreed to acquire Ricolino
from Grupo Bimbo SAB de CV for $1.3
billion and completed its acquisition of
Chipita SA. Other companies acquired in
recent years include Gourmet Food Holdings,
Hu, Give and Go, Perfect Snacks and
Tate's Bake Shop. According to Mondelez,
the acquired companies have added more
than $2.8 billion in annual revenues.
Alice Popple, consumer analyst at
GlobalData, said the transaction highlights
a returning demand for energy-boosting
snacks post-pandemic.
" Mondelez's initiative to expand its
earlier this year added Clif Thins, which
are described by the company as a " crispy,
crunchy take on the original Clif Bar. " The
company also offers energy gels, drink
mixes, honey spreads and plant-based
jerky for the pet food market.
" This transaction further advances our
ambition to lead the future of snacking by
winning in chocolate, biscuits and baked
snacks as we continue to scale our highgrowth
snack bar business, " said Dirk
Van de Put, chairman and chief executive
officer. " As a leader and innovator in
well-being and sustainable snacking in
the US, Clif Bar & Co. embodies our purpose
to 'empower people to snack right,'
and we look forward to advancing this
important work with Clif's committed
colleagues in the years ahead. "
Clif Bar will remain headquartered
in Emeryville to nurture " its entrepreneurial
spirit " and maintain the brand's
bakingbusiness.com
since its founding and will remain our
North Star going forward. "
Mondelez said the transaction is
expected to be top-line accretive in year
two and generate cost synergies by using
Mondelez International's global and
North American scale to expand Clif's
sales distribution and gain further penetration
in existing and new customers and
channels in the United States.
Clif Bar was launched in 1992. In its
early years, the company's customer base
expanded from cyclists and climbers to
outdoor adventurers, with distribution
expanding over time from bicycle shops,
outdoor stores and natural food retailers
to include grocery stores, convenience
stores and other retail channels nationwide.
According to the company's history,
founders Gary and Kit Crawford " made
the brave decision to stay private " in 2001,
allowing them to develop their growing
snack business highlights people's persistent
demand for easy, convenient,
on-the-go food, " Ms. Popple said. " Globally,
47% of consumers deem 'convenience'
to be essential when making a purchase,
which reinforces the motive behind
Mondelez's recent acquisition to take over
successful snack brand Clif.
" However, the snack aspect of Clif's
energy bars is not its main selling point,
as the products feature energy-boosting
claims. The demand for energy boosting
ingredients is high following the pandemic,
with 35% of global consumers
deeming this to be essential when making
a purchase, and 48% agreeing that it is
nice to have. Now that offices and gyms
have reopened, consumers are actively
looking for products that can give them
that extra boost in the day following two
years of lockdowns, with Clif perfectly
positioned for this. " MBN
MILLING & BAKING NEWS 11
©ANDRE - STOCK.ADOBE.COM AND CLIF BAR & CO.
http://www.bakingbusiness.com
Milling & Baking News - June 28, 2022

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