Trident Splash chewing gum

Brands in the gum portfolio include Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious

Mondelez International has agreed to sell its chewing gum business to Mentos and Chupa Chups owner Perfetti Van Melle Group for $1.4bn (£1.2bn).

The deal only includes the business in developed markets (the US, Canada and Europe), with Mondelez retaining its gum holdings in emerging markets across Latin America, Asia, the Middle East and Africa.

The sale advances the Cadbury owner’s strategy to accelerate growth and focus on its core portfolio in the chocolate, biscuits and baked snacks categories.

Manufacturing facilities in Illinois and Poland are included in the deal, along with gum brands Trident, Dentyne, Stimorol, Hollywood, V6, Chiclets, Bubbaloo and Bubblicious in the US, Canada and Europe, as well as the European candy brands Cachou Lajaunie, Negro and La Vosgienne.

Mondelez will continue to operate its gum business outside North America, Canada and Europe, led by Stride in China, as well as all of its other candy brands and products.

“As we continue progressing our ‘Vision 2030’ focus and acceleration strategy, doubling down on our core snacking categories, we are pleased to transition our developed market gum business to a values-led, family-owned company whose portfolio is a strategic fit, and where our brands and people can thrive,” said Mondelez chairman and CEO Dirk Van de Put.

Perfetti Van Melle added the acquisition complemented its portfolio.

Vice chairman Daniele Perfetti said: “Perfetti Van Melle will be an excellent home for the management team and employees of Mondelez International’s gum business in North America and Europe.

“We have long admired the product and brand portfolio of the gum business and look forward to combining them with the Perfetti Van Melle brand family.”

Perfetti Van Melle manufactures and distributes confectionery and chewing gum in more than 150 countries and owns the Mentos, Chupa Chups, Alpenliebe, Frisk, Smint, Fruit-tella, Golia, Brooklyn, Happydent, Vivident, Daygum, Vigorsol, Big Babol and Airheads brands.

The Italian-Dutch multinational reported group revenues of €2.5bn (£2.2bn) in 2021.

Mondelez’s ‘Vision 2030’ strategy aims to generate 90% of the group’s revenue in chocolate and biscuits, including baked snacks categories. It makes 80% of sales from the core categories today, up from 59% in 2012.

The transaction is subject to customary closing conditions and is expected to complete in Q4 of 2023. The definitive agreements cover the sale of the business in the US, Canada and Europe, excluding France. The parties have entered into exclusive arrangements for the sale of the business in France.