Tate's Bake Shop To Sell For $500M

SOUTHAMPTON, NY — A beloved local Hamptons bake shop known for its mouthwatering cookies is set to be sold for $500 million.

Mondelēz International announced Monday that it would acquire Tate’s Bake Shop, which has locations in Southampton, Westhampton and Center Moriches.

According to a release, Mondelēz International has an agreement with The Riverside Company, a global private equity firm, and other shareholders, including founder Kathleen King, to acquire Tate’s Bake Shop.

Founded in 2000, Tate's soon became a delicious treat on the East End, known for signature thin-and-crispy cookies with simple, authentic, high-quality ingredients.

"With a strong founder story and on-trend products, Tate’s has been one of the fastest growing biscuit brands in the United States over the last 12 months," the release said.

The brand’s sales have quadrupled over the past five years. In 2018, retail sales in measured channels have grown by more than 40 percent through March, the company added.

“Tate’s is a great strategic fit that will complement our portfolio of beloved snacks brands,” said Dirk Van de Put, chairman and chief executive officer. “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. Tate’s has demonstrated exceptional and very profitable growth, and we look forward to working with the Tate‘s management team to expand distribution and build upon that success.”

“We’re thrilled and humbled to be joining a portfolio of some of the world’s most well-known and successful snacking brands,” said Maura Mottolese, chief executive officer of Tate’s Bake Shop. “Consistent with Mondelēz International’s purpose to create more moments of joy for consumers, providing an authentic, delicious indulgence has been at the heart of Tate’s Bake Shop since Kathleen first opened her storefront nearly two decades ago. Now, together with Mondelēz International, we’ll have the opportunity to take Tate’s to the next level and offer our cookies and baked treats to many more consumers across North America.”

Mondelēz International will operate Tate’s as a separate standalone business; Tate’s Bake Shop senior leadership will continue to run the Tate‘s business from its headquarters, including its iconic bake shop located in Southampton.

Tate’s will continue to produce all products at its East Moriches manufacturing facility, the release said.

The acquisition is expected expected to take place this summer, the release said.

Mondelēz International, Inc. reported 2017 net revenues of approximately $26 billion and is a world leader in biscuits, chocolate, gum, candy and powdered beverages, featuring global brands such as Oreo and belVita biscuits; Cadbury Dairy Milk and Milka chocolate; and Trident gum.

King, who was born and raised in Southampton, made her first foray into baking at the age at 11 by selling cookies at her family's farmstand.

In 1980, King turned her passion for baking into a career, and opened her first bakery called Kathleen's Bake Shop; she later launched Tate's, which grew astronomically and become wildly successful. Even chef and talk show host Rachel Ray named her chocolate chip cookie the "Best Cookie in America."

"It was always my goal to make the best cookie in America," said King of the honor bestowed upon her by Ray.

King has long been part of the fabric of East End's business community — devoted to the hometown where her family has deep roots in farming.

"I feel very, very loyal to the community and I give back as much as I can," King said.

Though she supports many local organizations, the Peconic Land Trust is particularly important to King, she said, because it helps to preserve open space and what she referred to as the "integrity of the Hamptons."

King said that upon learning the Pioneer Chapter of Hadassah in Westhampton had named her "Woman of the Year" in 2011, she was surprised and honored.

(Patch file photo of Kathleen King from a prior story in 2011).