Cadbury deal puts factory expansion on a mini roll

Cadbury owner Mondelez has reached agreement on a global deal with Premier Foods that expands its licence agreement to cover 46 countries.

Premier Foods expects to expand its manufacturing facility in Moreton, Wirral, following the deal. The site already produces more than one million Cadbury Mini Rolls a day.

The two food companies have signed heads of terms on a partnership agreement that renews Premier Foods’ licence to produce and market Cadbury-branded cake and other dessert products.

South Africa, Canada, Japan, China, India, Asia Pacific, Caribbean and additional countries in the Middle East are now part of the long-standing agreement between the companies, which will span 46 countries.

It also provides for the possibility, subject to approval, to use the full range of Cadbury brands, including Flake, Crunchie, Caramel and Marvellous Creations.

Gavin Darby, chief executive officer, Premier Foods believes the extended partnership will “unlock exciting new growth opportunities for both partners”.

He said: “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 licence, once finalised, will run until 2022 with the option for a further three years if performance criteria are achieved.

Glenn Caton, president of Northern Europe, Mondelēz International added: “The future is bright for Cadbury cakes and for the people that love them.”