Biscuit wars as Cadbury plots £200m Burton’s bid

THE owner of Cadbury chocolate bars and Oreo cookies is in talks to buy the rights to make Cadbury biscuits in Britain, in a £200m deal.

US-based Mondelez International wants to buy the licence from UK-based biscuit maker Burton’s Biscuits Co, according to Sky News.

It is thought £200m has been offered for the licence from Burton’s, whose parent company is controlled by investment giant Canada’s Ontario Teachers’ Pension Plan. Burton’s makes biscuits such as Cadbury Fingers.

Burton’s, which also makes Jammie Dodgers and Wagon Wheels, has previously been in talks to buy Fox’s Biscuits from chicken-focused firm 2 Sisters Food Group but no deal has emerged. Burton’s has also previously tried to buy United Biscuits, the owner of Jaffa Cakes and Penguin.

If Mondelez bought the lucrative licence for ranges including Cadbury Crunchie and Jumbo Animals biscuits, it would bring together its chocolate and biscuit ranges under one company.

The report comes just weeks after Mondelez made a bid for US chocolate brand Hershey Co to create a £67bn giant. Hershey rejected the offer.

Cadbury was bought by Kraft in a £11.5bn hostile takeover in 2010. Kraft then split into two and Kraft Foods focused on its north American food business and Mondelez focused on chocolate and sweets. Kraft was then bought by US giant Heinz and is now called Kraft Heinz and owned by investment guru Warren Buffett and Brazilian investment firm 3G Capital.

Mondelez International said: ‘We do not comment on rumour or speculation.’

And Burton’s Biscuit Co said: ‘We do not comment on speculation of this nature.’

Separately, mid-market private equity firm LDC has sold its stake in contract caterer Waterfall Catering Group to Parisbased Elior Group.

LDC, the private equity arm of Lloyds Banking Group, originally backed a £20m buyout of Waterfall in 2014. Waterfall employs 3,500 people and supplies food to the care and education sectors, with revenues of £70m.