Mondelez International has sold part of its chewing gum business (including famous brands like Stimorol, V6 and Bubblicious) to Dutch confectionery specialist Perfetti Van Melle.
Mondelez wants to focus on more attractive categories and is therefore departing from its gum business in developed markets such as the United States, Canada and Europe. The multinational has sold its chewing gum division to Italo-Dutch peer Perfetti Van Melle for 1.35 billion dollars (roughly the same in euros), or fifteen times its expected operating profit (ebitda).
The confectionery giant hopes chocolate, biscuits and pastries will be worth 90 % of its revenue by 2030, up from 80 % today. The American food producer sees these categories as areas where significant growth is still possible. For that same reason, the manufacturer does remain active with chewing gum in growth markets such as Latin America, Asia, the Middle East and Africa.
The deal involves two factories – one in the US and one in Poland – and a range of brands: Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo, Bubblicious, Cachou Lajaunie, Negro and La Vosgienne. Those brands complement nicely with the portfolio of Perfetti Van Melle, known for Mentos, Chupa Chups, Frisk and Fruittella.