Lotus Bakeries Shares Rise on Mondelez International Partnership for India Expansion

By Helena Smolak

Lotus Bakeries shares rose after it said it will team up with U.S. snack food rival Mondelez International to grow its cookie premium brand Biscoff in India and create co-branded chocolate products.

At 0836 GMT, Lotus Bakeries shares traded 1.9% higher at EUR10,060.00, having risen more than 4% earlier in the session. The stock gained 49% in the past 12 months.

The Belgium snack food company said Thursday that Mondelez--one of the leading chocolate and biscuit manufacturers, known for its Oreo, Milka and Toblerone brands--would manufacture, market and sell its Biscoff brand in India.

In addition, both companies plan to develop new co-branded chocolate formats and flavors, incorporating the Biscoff cookie into Mondelez's Cadbury and other key brands in Europe with the option to expand globally, Lotus said.

The first co-branded products are expected to launch in early 2025, with Cadbury and Biscoff in the U.K., and Milka and Biscoff in Europe.

Lotus plans to grow market share for Biscoff in India as it aims for the product to become the world's third largest cookie brand. As of last year, Lotus's revenue in India made up 0.2% of its total group revenue. Meanwhile, Mondelez is the leading chocolate manufacturer in the Indian market, according to its annual report.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

June 13, 2024 04:53 ET (08:53 GMT)

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