By Victor Ocasio
WWR Article Summary (tl;dr) Tate’s products are available in 85 percent of supermarkets throughout the United States.
Tate’s Bake Shop, a Long Island company that traces its roots to the early 1970s when founder Kathleen King first sold her homemade cookies at her father’s North Sea farm, has agreed to be acquired for about $500 million by snack food giant Mondelez International Inc.
Tate’s, known for its signature thin, chocolate chip cookies, bakes more than 1.5 million cookies at its East Moriches manufacturing facility each day. Deerfield, Ill.-based Mondelez, which owns many confectionary brands formerly owned by Kraft Foods Inc., had about $26 billion in net revenue last year.
The sale is “going to enable us to really leverage Mondelez’ expertise,” said Maura Mottolese, who joined Tate’s in 2014 as chief executive. “We have a very small international footprint. This will open up the doors for our brand internationally. It will help expand our capabilities and product lines.”
The company’s products, available in 85 percent of supermarkets throughout the United States, are all produced on Long Island.
Mottolese said the aqcuisition could result in the expansion of manufactuing capacity locally, or include the opening of additional production facilites elsewhere, though the company will operate as a standalone business unit and remain locally based.
“We will continue to be based on Long Island and will continue to be true to our Long Island roots,” Mottolese said.
The CEO declined to provide specific revenue figures for privately-held Tate’s, but said the company has more than quadrupled in size over the last five years.
“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” Dirk Van de Put, chairman and chief executive of Mondelez said in a company news release. “With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast growing premium cookie segment.”