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Why the Maker of Oreos Is Buying a Classy Hamptons Cookie Company

  • Baker of ubiquitous treats gets fancy in search of U.S. growth
  • A baked good that bespeaks luxury, with a price to match
Bloomberg business news
Confused About What to Eat? You're Not Alone

Mondelez International Inc. is betting that if you pay more for a classy cookie, you’ll eat more of them.

The company, which makes Oreos and Chips Ahoy -- mass-market baked goods that bear scant resemblance to the products of your mom’s oven -- has agreed to buy Tate’s Bake Shop for about $500 million. The fast-growing company started as a bakery in Southampton, New York, the posh Long Island enclave about 90 miles (145 kilometers) east of Manhattan. It produces thin, buttery specimens of the chocolate-chip variety.