A worker carries out a quality spot check at a biscuit factory owned by Mondelez International Inc, the United States snack food manufacturer, in Suzhou, Jiangsu province. [Photo provided to chinadaily.com.cn]
Mondelez International Inc, the United States snack food manufacturer, announced early this week that its China branch has acquired a majority stake in Evirth (Shanghai) Industrial Co Ltd, a Shanghai-based manufacturer of frozen cakes and pastry products.
As a major manufacturer of baked goods and chocolate products, Mondelez remains optimistic about the investment environment in China, demonstrating its determination to expand in the Chinese market, said the company in a statement.
This acquisition also supports domestic companies such as Evirth (Shanghai) in accelerating their overseas market expansion and growth.
Dirk Van De Put, chairman and CEO of the Chicago-based Mondelez, said that the group will continue to accelerate its core business while strategically reshaping its portfolio - for example, through its expanded partnership with Evirth (Shanghai).
Founded in 2013, Evirth (Shanghai) is a large-scale company specializing in the research and development, production and sales of frozen baked food. It supplies a wide variety of baked products to businesses, including membership-based stores, restaurant chains and new retail platforms. It currently runs three plants in Shanghai and Guangdong province.
"Chinese consumers, particularly the younger generation, are placing a growing emphasis on product quality. Their pursuit of excellence is evident not only in their preference for premium ingredients but also in their high expectations for taste and variety," said Joost Vlaanderen, president of Mondelez China.
Believing that frozen baked goods are a key component of his company's global strategy, Vlaanderen said this category remains largely untapped in China.
"We remain firmly committed to and confident in the Chinese market. This investment move signals a new chapter in Mondelez's growth journey in China," said Vlaanderen.
China serves as a strategic growth engine for Mondelez on a global scale. With a rapidly growing middle-income population and accelerating urbanization, the country presents a significant opportunity for global investors, he added.
Mondelez - the maker of Oreo cookies and Stride gum - saw its sales revenue grow by 2 percent year-on-year to $9.2 billion globally during the third quarter of 2024, according to its latest financial report.
Despite geopolitical headwinds impacting the flow of cross-border investment in many parts of the world, Mondelez's decision to invest in the Chinese market shows a positive outlook on China's continually improving business environment, said Sang Baichuan, dean of the Institute of International Economy at the University of International Business and Economics in Beijing.
