Yildiz Looking to Sell Godiva in Japan

1 min readOct 1, 201810:24 AM

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A sale of Godiva Japan is being considered which could value the business at US$1.5 billion.

Parent Yildiz Holding is considering an offer which would allow it to use the proceeds to reduce debt and invest in other markets with larger growth prospects.

Gidova Japan has annual sales of about $350 million a year.

Yildiz Holdings was founded by Turkish brothers as a biscuit shop in 1944, acquiring Godiva in 2007 for $850 million. It now operates hundreds of Godiva cafes around the world as well as marketing Godiva-branded chocolate products, and its assets include UK brand McVitie’s biscuits.

Unnamed sources said a formal sale process would commence within weeks.

Prospective bidders include rival confectionery companies or private equity funds, along with Japanese trading groups.

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What this means

This potential divestment of Godiva Japan appears a financially sound move for Yildiz, aiming to unlock significant capital from a mature market to fuel growth in other regions. While Godiva has diversified with cafes and branded products globally, this Japan sale indicates a strategic pivot away from a core, established market, unlike Kau Kee Food Factory's recent first retail store opening in Hong Kong or Blue Tokai's planned entry into Japan. The US$1.5 billion valuation for a business with US$350 million annual sales suggests a premium, which Yildiz will use to pressure rivals in emerging markets. The risk lies in relinquishing a highly profitable brand presence. We await confirmation of the formal sale process starting within weeks.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

Why is Yildiz Holding considering selling Godiva Japan?

Yildiz Holding aims to use the proceeds from a potential sale to reduce its debt. Also, it plans to invest in other markets that are considered to have larger growth prospects than Japan for the business.

What is the estimated value of the Godiva Japan business?

The potential sale of Godiva Japan could value the business at US$1.5 billion. This figure is part of the consideration by parent company Yildiz Holding.

What type of companies might bid for Godiva Japan?

Prospective bidders for Godiva Japan could include rival confectionery companies and private equity funds. Japanese trading groups are also considered potential interested parties.

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