Dive Brief:
- Mondelēz International and Biscoff owner Lotus Bakeries have agreed to develop chocolate products that combine the taste and texture of the popular cookie with Mondelēz’s Cadbury, Milka and other key chocolate brands in Europe. The agreement comes with an option to expand globally.
- Mondelēz and Lotus said the partnership provides new opportunities for both companies to accelerate their growth ambitions in the cookie and chocolate categories. Dirk Van de Put, Mondelez’s CEO, said in a statement that “co-developing new, innovative chocolate flavors and formats in Europe … will strengthen consumers’ already enduring loyalty to our two companies’ iconic brands.”
- The companies also said they plan to expand and grow the Biscoff brand in India.
Dive Insight:
The partnership between Mondelēz and Lotus is a perfect example of a deal that combines the key strengths and assets of two snacking powerhouses.
Mondelēz, with its deep portfolio of chocolates, is no stranger to the cookie and biscuit space as it also owns brands such as Oreo, Lorna Doone, belVita and Honey Maid. Its insight into chocolates and cookies should prove valuable in developing products combining the popular Biscoff cookie with its chocolates.
Mondelēz also has a broad global reach, with its $36 billion in global revenue last year split nearly evenly among Latin America/Asia, Middle East & Africa; Europe; and North America.
Despite having brands available globally, it also owns smaller brands that thrive in local areas. This has enabled Mondelēz to understand consumer preferences that vary by area. Lotus’ collaboration with Mondelēz to develop new products should benefit from the Oreo parent’s expertise in creating snacks that cater to local preferences.
While Mondelēz and Lotus said specific formats are still in the early stages of development, the first co-branded products are expected to launch in early 2025, with Cadbury and Biscoff in the United Kingdom, as well as Milka and Biscoff in Europe. The insight they garner with these launches could prove valuable if they choose to enter other markets.
“We are thrilled to join forces with the world’s number-one cookie player, Mondelēz International, and we are grateful for their belief in our Biscoff brand,” Jan Boone, CEO of Lotus Bakeries, said in a statement. “We are excited to add our Biscoff brand to one of the world’s leading chocolate companies.”
The partnership gives Mondelēz access to the fast-growing Biscoff brand which has expanded into ice cream, spreads, sauces and other products.
The snack traces its roots to 1932 when Belgian baker Jan Boone Sr. created a caramelized cookie with natural ingredients, according to Louts Bakeries’ website.
Today, 6 billion of the cookies are produced annually. Revenue for Biscoff rose 20% to more than $500 million in 2023 as the company continued its efforts to grow the brand internationally. It is now among the top five biscuit brands globally. Last year, household penetration for Biscoff cookies surpassed the 5% milestone in the U.S.
Boone wants Biscoff to eventually become the third-biggest biscuit brand in the world by sales, behind Mondelēz’s Chips Ahoy! and Oreo, the Financial Times reported in February.
