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Tate’s Bake Shop is gobbling up the chocolate chip cookie market as owner Mondelēz International sees more consumers looking to treat themselves with premium indulgences in an uncertain economy.

The snacks manufacturer purchased Tate’s in 2018 for around $500 million, a move that kickstarted an expansion of its snacking portfolio and provided Mondelēz with a high-end offering to offset mainstream brands such as Chips Ahoy! and Oreo. Since then, Mondelēz has purchased Clif Bar, premium chocolate brand Hu and refrigerated bar Perfect Snacks.

Tate’s premium halo is cultivated by the brand's small-town Southampton, New York, roots and its use of simple ingredients — such as brown sugar and butter — that are in demand with shoppers. 

For Mondelēz, a company with $38.5 billion in annual sales, the tiny Tate’s brand is a stepping stone to gaining further market share in the snacking space and a brand executives have identified as ripe for significant growth.

Demand for premium treats has surged as shoppers turn to brands they view as an affordable luxury due to their higher-quality ingredients and better taste. Circana data released in April found premium and super-premium offerings are gaining dollar share, with consumers willing to pay more if the value proposition is evident.

“There is a lot more runway in terms of just where we have to go with [Tate’s],” said Jennifer Hull, head of marketing for the cookie. “It's a nice complement to the rest of the portfolio.”

Tate's commands roughly 2% of the $11.2 billion sweet cookie market and is generating mid-single-digit growth annually. Sales grew 2.5 times faster than the overall cookie category in 2025, according to Mondelēz.

The brand is especially popular on the West and East coasts, leaving Mondelēz with a large portion of the U.S. where it can increase market share. Mondelēz is also prioritizing innovation with Tate’s to attract new consumers. 

Tate’s has rolled out cookies that cater to specific dietary needs such as gluten-free. It also launched limited-time innovations, such as key lime pie, pumpkin spice and white chocolate raspberry, that proved especially attractive to younger shoppers. Last year, Tate’s launched its first-ever soft-baked cookie. 

Hull said Mondelēz eventually sees an opportunity to stretch the brand beyond its core cookie to include other products sold at Tate’s flagship Southampton bake shop. She said the brand could consider other indulgences including brownies, cakes and muffins.

“The bake shop is your mecca of what could be,” Hull observed. “There's lots and lots of ideas. It's more about when is the right time and what's the right way to do that and maintain the equity.”