Mondelez explores sale of brands in Europe
Shalini Nair 1st December 2015
Mondelez International, which owns the Cadbury chocolate brand, has appointed bankers to explore the sale of several confectionery brands, including Terry's Chocolate Orange and Terry's All Gold in Europe.
It is exploring sale of brands and assets in the UK, France, Spain and the Netherlands, reported Sky News, citing sources familiar with the matter.
The sale is being handled by investment bank Lazard, which led Kraft's acquisition of UK-based Cadbury in 2010 for £11.5bn.
"Terry's is an old brand, with its roots dating back to the 18th century."
Kraft's takeover of Cadbury led to public outcry, which in turn led to changes being made to a code on acquisitions in the UK.
Mondelez decided to sell the Terry's brand as it is not key to its business, Sky News reported.
Kraft purchased Terry's in 1993 and in 2005, its production was shifted from York, UK.
Terry's is an old brand, with its roots dating back to the 18th century.
According to a Reuters report, Terry's Chocolate Orange and All Gold chocolates were introduced in the 1930s; the Chocolate Orange was rolled out in 1931 while All Gold was launched in 1936.
Terry's became a part of Mondelez when its parent company Kraft split into two different entities in 2012.
Since its split from Kraft, Mondolez has experienced mixed performance, even though in August it saw sales improve in the second quarter of its fiscal year, reported Sky News.
In October, it was reported that the US Securities and Exchange Commission (SEC) was set to start up a civil lawsuit against Mondelez International over allegations of bribes being paid by its Cadbury India unit to obtain factory permits and approvals.
Under the Foreign Corrupt Practices Act, the company may not face any criminal charges as no proof has emerged that links these payments to the parent company in the US, reported the Wall Street Journal.
While criminal charges may be unsuitable, prosecutors have not ruled out any other charges against the firm.
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