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Lotus Bakeries: The Cookie That Conquered the World
How a caramelized biscuit from a tiny Belgian village became an âŹ8.8 billion global phenomenonâand what it reveals about the power of patience, product focus, and accidental virality
I. Introduction: A Cookie Worth Billions
Imagine standing in the departure lounge of any major American airport in 1986. The scent of jet fuel mingles with stale coffee. A tired traveler, perhaps flying Delta from Atlanta to Los Angeles, settles into their seat at 35,000 feet. The flight attendant offers a small packet: two thin, caramelized cookies wrapped in red and white packaging. The traveler takes a biteâcrunchy, sweet, spiced with cinnamon and a hint of caramel. It's a moment so unremarkable that billions have since repeated it. But in that simple act lies the seed of one of the most extraordinary business stories in consumer packaged goods.
Jan Boone, grandson of founder Jan Boone Sr., has been the CEO since 2011. The company was founded in Lembeke, Belgium in 1932 by three brothers Jan, Emiel and Henri Boone. From that tiny Flemish village, these brothers created something that would, over nine decades, grow into a global phenomenon worth nearly âŹ9 billion.
Lotus Bakeries has around 3,360 employees and achieved a revenue of EUR 1,232.0 million in 2024. The company has achieved a Compound Annual Growth Rate of 11.6% over the last 15 years. This isn't the explosive growth of a tech startup or the boom-bust cycle of a fashion brand. It's something rarer and perhaps more valuable: steady, patient compounding driven by family ownership, product excellence, and an almost religious devotion to a single taste.
The question that should fascinate any investor or business student is deceptively simple: How does one cookie recipe, from one small town, conquer the world?
The answer lies in understanding five key inflection points: the coffee companion strategy that made Biscoff ubiquitous in Belgium, the airline breakthrough that gave millions of Americans their first taste, the Biscoff spread innovation that transformed cookies into a platform brand, the social media explosion that delivered free marketing at unprecedented scale, and the MondelÄz partnership that unlocked the final geographic frontiers. Each of these moments reveals something essential about building enduring consumer brands in a world obsessed with disruption.
II. Origins: The Boone Brothers & Belgian Baking Tradition
A Vision Born in Flemish Fields
The year was 1932. Belgium, still recovering from the devastation of World War I, was sliding deeper into the Great Depression. In the small Flemish village of Lembeke, population barely a few thousand, Jan Boone Sr. looked at his countrymen and saw an opportunity rooted in tradition.
The company was founded in Lembeke, Belgium in 1932 by three brothers Jan, Emiel and Henri Boone. Jan named it Lotus, after the flower which symbolises purity. The choice of name was deliberateâpurity would become a defining principle of the company for the next nine decades. No artificial flavors. No synthetic colors. No shortcuts.
The product Jan Boone sought to perfect was speculoos, a traditional spiced biscuit deeply woven into Belgian culture. These flat, crispy cookies hail from Belgium, where they're called Speculoos and figure in Belgian culture from the 17th century as a sweet treat originally given to children for Sinterklaas, or St. Nicholas Day, on December 6. For centuries, Belgian families had baked speculoos during the holiday seasonâa ritual as embedded in national identity as croissants in France or pretzel-making in Bavaria.
What set the Boone brothers' speculoos apart was a proprietary caramelization process. The recipe called for a specific blend of wheat flour, sugar, vegetable oils, and warming spices including cinnamon, ginger, and nutmeg. But the magic happened in the baking: the sugars were carefully caramelized, producing that distinctive golden-brown color and unmistakable crunch. A unique recipe caramelises the sugar in the dough, resulting in a crunchy yet melt-in-your-mouth texture that's simply irresistible.
Surviving War, Building Foundations
The timing of the company's founding could not have been worse. Within seven years of Lotus's creation, Europe would be engulfed in its second catastrophic war in a generation. Belgium, strategically positioned between France and Germany, suffered enormously during the Nazi occupation. Yet the Boone family persevered, maintaining their small bakery through the chaos.
Maintaining high quality has been a guiding principle since Jan Boone Sr. founded the company with his brothers Emiel and Henri, creating the first caramelized biscuit using all-natural ingredients. This familial dedication helped the company navigate the challenges of the interwar and postwar periods, building a loyal domestic customer base through word-of-mouth and regional markets.
The postwar years brought opportunity. As Europe rebuilt, consumer spending gradually recovered. Belgium's cafĂ© cultureâamong the most vibrant in Europeâprovided Lotus with a natural distribution channel. In the 1950s, the brothers made a pivotal decision that would define the brand's trajectory for decades.
III. The Coffee Companion Strategy: Innovation in Packaging
The Genius of Individual Wrapping
In the 1950s, the brothers began to package the Lotus Speculoos biscuits individually, and from 1956 they were offered in Belgian catering establishments alongside coffee. This innovation seems almost trivially simple in hindsight, but its implications were profound.
Before individual wrapping, biscuits were sold loose or in family-sized packages. By creating single-serve packaging, Lotus accomplished several things simultaneously. First, freshness: each cookie remained crisp until the moment of consumption. Second, convenience: cafés and restaurants could easily portion out exactly one serving. Third, branding: every wrapped cookie became a tiny billboard, carrying the Lotus name directly into consumers' hands.
But the real strategic insight was positioning. Rather than competing in grocery aisles against dozens of other cookie brands, Lotus carved out an entirely new category: the coffee accompaniment. By positioning Biscoff as the "cookie that perfectly complements coffee", Lotus tapped into everyday rituals.
The flavor science supported this positioning. The caramelized notes of the speculoos complement coffee's bitter compounds in a way that feels almost inevitable. The cookie's crispness contrasts with coffee's liquid warmth. When Europeans began receiving a wrapped speculoos alongside their espresso or cafĂ© crĂšme, it felt like a natural pairingâas if the two had always belonged together.
The Corona Merger and Second-Generation Leadership
Partnering up with the Stevens family in 1974, Lotus merges with Corona and now also includes delicious cakes and pastry within its product range. This merger marked a significant expansion of the company's capabilities and product portfolio.
Karel Boone, the son of founder Jan Boone Sr., became a director in 1966 and was the CEO of Lotus Bakeries for 32 years from 1974-2006. He was also from 1966-2012 the president of the company for 46 years. Karel's tenure represented the professionalization of what had been a family bakery into a sophisticated food company. Under his leadership, Lotus expanded beyond Belgium's borders, but always carefully, always maintaining the quality standards his father had established.
Karel Boone started his career in 1966 as an executive member of the Board of Directors of the Belgian company Lotus Bakeries. He became the CEO in 1974 when Lotus Biscuits merged with Corona. Karel Boone, knighted in 1999, left his mark on the company through his exemplary management.
The decades under Karel's leadership established patterns that continue to define Lotus today: methodical international expansion, selective acquisitions, reinvestment of profits into production capacity, and an almost obsessive focus on the core product. These weren't glamorous strategiesâthey didn't make headlines or attract venture capital. But they built a foundation that would prove remarkably durable.
IV. Going International: The Airline Breakthrough
Discovering the American Sky
The Speculoos biscuit is branded Lotus Biscoff, a brand name launched since 1986 and gradually introduced in all countries. In the mid-1980s, several airlines began serving Lotus Biscoff as an in-flight treat.
The story of how Lotus conquered America reads like business folklore, but it's rooted in a simple truth: sometimes the best distribution is the distribution you don't have to build.
Delta Air Lines can be credited with bringing Biscoff cookies to the realm of in-flight snacking back in 1986. The story goes that Michael McGuire, a US-based food broker, discovered these delightful treats during his travels through Europe and became quite fond of them. Upon returning to the States, McGuire introduced Biscoff cookies to Delta, suggesting they would make a perfect in-flight snack.
Lotus Biscoff cookies have become a cult snack in the US since Delta Air Lines introduced them on board planes way back in 1986. In the US the cookies are now best associated with Delta Air Lines. The carrier was the first to bring the snacks on board planes in 1986, which makes it now more than 30 years that travelers have begun or ended trips with its distinctive, sweet cinnamon-ginger-nutmeg taste.
Why airlines? The logic was elegant. Every airline passenger represented a captive audience with limited snacking options. The cookies' compact size, long shelf life, and robust texture made them operationally ideal for the cramped galleys of commercial aircraft. Their compact size, robust texture, and distinct sweetness would be perfect for high-altitude snacking. Our senses of taste and smell can be diminished in the air, but these cookies manage to retain their flavor, making them a great option. Additionally, their long shelf life and no need for in-flight preparation made them an operational dream for airlines.
But the real genius was positioning. In-flight snacks occupy an unusual psychological space. They're freeâcreating positive associations with the brand. They're delivered during a time of mild discomfortâmaking any small pleasure feel significant. And they're consumed by travelers from every demographic segment, from business executives to vacationing families.
The Name That Bridged Cultures
The brand name "Biscoff" itself deserves analysis. Biscoff cookies also pair wonderfully with coffee, one of the most popular drinks served on flights. Interestingly, the name "Biscoff" is a clever combination of "biscuit" and "coffee," emphasizing this perfect pairing.
For American consumers unfamiliar with Belgian "speculoos," the name was meaninglessâpossibly even difficult to pronounce. "Biscoff" was instantly comprehensible, phonetically pleasing, and embedded the coffee-pairing message directly into the brand identity. This wasn't just marketing; it was a strategic decision that enabled the product to transcend its Belgian origins while retaining its essential identity.
Mike Henny, managing director of onboard services for Delta Airlines told Travel + Leisure, "We serve between 80 to 85 million Biscoff cookies a year, and we have lots of Delta fliers who are enthusiastic fans." Biscoff's popularity has outgrown Delta, and now the cookie is also found on WestJet, Alaska Airlines, American Airlines and Sunwing flights.
By the early 2000s, Lotus had achieved something remarkable: millions of Americans were receiving their introduction to the brand for free, at 35,000 feet, through a distribution network the company didn't own, manage, or pay for. Every flight became a sampling opportunity. Every satisfied passenger became a potential retail customer.
The Asian Market Entry
Moving beyond borders, Lotus Bakeries introduces its unique flavour on the Asian market in 1980. While the American airline strategy garnered more attention, Lotus was simultaneously building its presence in Asia, laying groundwork for what would become an increasingly important growth region.
V. The IPO & New Century: Building the Platform
Going Public While Staying Family-Controlled
The Lotus Bakeries shares are listed since January 2002 on the Euronext Brussels stock exchange under the ticker LOTB. The decision to go public represented a delicate balancing act: accessing capital markets while maintaining family control and long-term orientation.
The structure Lotus chose allowed the Boone and Stevens families to retain majority ownership and voting control while still benefiting from public market liquidity and the discipline of quarterly reporting. The family's continued ownership and control â still retaining over 50% of the shares and voting power â has likely been a crucial factor in preserving the brand's quality and enduring success.
This governance structure enabled something increasingly rare in modern capitalism: true long-term thinking. When quarterly earnings pressure doesn't threaten management's job security, decisions can be made on ten-year time horizons rather than ten-week ones.
Leadership Transitions
In 2006, his brother Matthieu took over as CEO. At the end of 2011, a new generation took over with Jan Boone becoming the CEO.
Since 2011, the company has been led by Jan Marcel Matthieu Boone, a member of the third generation of the Boone family and the grandson of the founder Jan Boone Sr.
The current CEO's background reveals much about Lotus's approach to leadership development. Jan Boone began his career in the audit department of PwC. From 2000-2005, he was responsible for corporate controlling, reporting and M&A at pharmaceutical company Omega Pharma, where he also sat on the Executive Committee and Board of Directors. Jan joined Lotus Bakeries as General Manager and member of the Board of Directors in May 2005. He was appointed CEO and Managing Director of Lotus Bakeries in 2011.
Jan Boone wasn't parachuted directly into the CEO role despite his family connection. He spent years building external experience at major professional services and pharmaceutical companies before joining Lotus, then worked within the organization for six years before assuming ultimate leadership. This patternâexternal seasoning followed by internal apprenticeshipâhas produced three generations of capable family leadership.
Reaching Milestones
With a turnover of more than EUR 250 million, Lotus Bakeries reaches a new milestone in 2008. By the late 2000s, Lotus had built a solid European business with growing American distribution. But the company was still essentially a single-product company, albeit an excellent one. The next phase of growth would require something different: product innovation that expanded the brand without diluting its identity.
VI. Inflection Point #1: The Biscoff Spread Revolution
From Cookie to Category
In 2007, something unexpected happened on Belgian television. A culinary enthusiast named Els Scheppers appeared on "De Bedenkers" ("The Inventors"), a show celebrating creative ideas. The story of Lotus Biscoff Cookie Butter began in Belgium in early 2007 from a simple but brilliant idea. Culinary enthusiast Els Scheppers had the idea to create a creamy spread with the taste of Lotus Biscoff cookies. After Scheppers entered a Belgian TV show, Lotus Bakeries saw the potential and began to perfect the recipe with her, which resulted in a new culinary delight launched in 2009.
The idea spread widely in part to a Belgian TV inventor show, called De Bedenkers ("The Inventors"). Two people presented a competing recipe to make a spreadable product out of Speculoos cookies: chef Danny De Maeyer who already filed a patent at that time, and Els Scheppers. Lotus, the biggest brand of Speculoos (known as Biscoff in the US) cookies, bought her idea and brought it to market.
LotusÂź BiscoffÂź becomes much more than your coffee's favourite companion. As from 2008, the unique taste of caramelised biscuits can also be found in a sweet spread. Its surprising taste brings variation to the table, whenever you enjoy a slice of bread or toast.
The Strategic Brilliance of the Spread
The Biscoff spread wasn't just a line extensionâit was a category creation. Before Biscoff spread, the "cookie butter" category essentially didn't exist. Consumers chose between peanut butter, Nutella, and jam. Lotus created a fourth option that competed in an existing consumption occasion (breakfast, snacking) while being utterly distinctive.
One of the most brilliant extensions of the brand came in the form of Biscoff Spreadâa creamy version of the cookie that could be used on toast, in desserts, or straight from the jar.
The spread accomplished several strategic objectives simultaneously:
Expanded usage occasions: Cookies are primarily snacks; spread is a breakfast food, baking ingredient, and topping. The same taste experience could now be consumed at many more moments throughout the day.
Increased household penetration: A household might buy cookies once a month. But once Biscoff became part of the breakfast routine, purchases became weekly.
Enabled ingredient positioning: The spread format made Biscoff easier for food manufacturers to incorporate into other products, opening B2B revenue streams.
Created differentiation: Unlike cookies, where competition is fierce, cookie butter had essentially one dominant player. Lotus had first-mover advantage in a category it had invented.
Today, with the monopoly lifted, cookie butter is available under many brands, including Lotus Biscoff and Trader Joe's Speculoos Cookie Butter. The spread gained a cult following in the United States in 2015.
VII. Inflection Point #2: The Three-Pillar Strategy
Building Beyond Biscoff
By 2015, Lotus had built an enviable position in the indulgent snacking segment. But management recognized that consumer tastes were evolving. The growing "better-for-you" snacking trend represented both a threat (if ignored) and an opportunity (if embraced).
Since 2015, the company became active in the natural snacking category acquiring three British companies. 2015: strategic partnership with Natural Balance Foods ('NBF') in the healthy snacking segment. NBF is a British wholefood company which offers bars under the nÄkd and TREK brands. 2016: acquisition of BEAR, a kids' fruit snacking brand that offers natural snacks made from fruit. 2018: acquisition of Kiddylicious, a British baby snacking brand.
Lotus Bakeries, the Belgium-based biscuit maker, has bought a majority stake in Natural Balance Foods, the UK firm behind snack bar brands Nakd and Trek. The deal, announced in August sees Lotus acquire 67% of the business for around GBP60m.
"As a group, Lotus Bakeries has traditionally focused mainly on the indulgent segment of biscuits and snacking," Boone said. "Additionally we recognise there is a growing global demand for healthy, unprocessed and tasty alternatives. The NÄkd and Trek brands, which are complementary to our current product and brand portfolio, will ensure Lotus has the right product and brand offering for all consumers."
The Local Heroes Strategy
Beyond healthy snacking, Lotus pursued a "Local Heroes" strategy, acquiring strong regional brands that dominated their home markets but had limited geographic expansion potential.
In 2012, the iconic Dinosaurus brand becomes part of the Lotus family and targets children and young people with its crunchy biscuits. Under the Peijnenburg and Snelle Jelle brands, the company supplies gingerbread in Netherlands.
These acquisitions reflected a nuanced understanding of consumer behavior. Not every great brand can or should be globalized. Some products are deeply tied to local tastes and traditions. Rather than trying to make Peijnenburg gingerbread compete globally, Lotus focused on maximizing its dominance in the Netherlands while generating reliable cash flows to fund Biscoff's international expansion.
The Three-Pillar Model Takes Shape
Lotus Biscoff achieved a 17% CAGR from 2014-2024, while Lotus Natural Foods showed 17% CAGR from 2015-2024, and Lotus Local Heroes maintained 5% growth from 2014-2024.
The three-pillar structure that emergedâLotus Biscoff, Lotus Natural Foods, and Lotus Local Heroesâgave the company both growth engines and stability. Biscoff provided explosive international growth. Natural Foods offered exposure to health-conscious consumers and new categories. Local Heroes generated steady cash flows and maintained strong market positions in core European markets.
In terms of revenue contribution, Lotus Biscoff represents 56% of branded revenue, while Natural Foods accounts for 24% and Local Heroes represents 20% of the total.
VIII. Inflection Point #3: The TikTok Phenomenon
Viral Without Trying
Sometime around 2020, something strange began happening on social media. Without any orchestrated campaign from Lotus's marketing department, home bakers across the world started posting videos of themselves making Biscoff cheesecakes, Biscoff lattes, Biscoff tiramisus. The hashtag #Biscoff began accumulating millions of views.
Biscoff, crunchy and spiced biscuits from Flanders, have become super popular thanks to social media, transforming from niche desserts, excellent to accompany coffee, to the main ingredient of viral recipes on TikTok and Instagram. The Belgian caramelized, crunchy cookies have taken the internet by storm, with foodies adding them to everything from cheesecakes to milkshakes.
The company, Lotus Bakeries, has noticed and said its sales have increased by 10% since before the pandemic due to social media.
A spokesperson for Lotus Bakeries told BuzzFeed News that the company has noticed its caramelized cookies going viral on social media among "a diverse group of consumers all over the world." "We noticed something similar during the COVID-lockdown where our products were featured in many Instagram and YouTube accounts in a broad range of home-baking recipes."
The Muslim TikTok Phenomenon
One of the most unexpected dimensions of Biscoff's viral success emerged from Muslim TikTok communities during Ramadan. Lotus Bakeries has credited the new recipes people have created, as well as social media overall, in their 2020 financial report as having contributed to the company's increased profits.
During Ramadan, desserts become particularly important as families gather to break their fast. Biscoff's unique characteristicsâvegan, nut-free, containing no animal-derived ingredientsâmade it accessible to diverse dietary requirements. Creative home cooks began incorporating the cookies and spread into traditional desserts, creating a wave of content that spread across communities worldwide.
The Organic Marketing Advantage
Lotus Bakeries, the company behind the Biscoff caramelised biscuit and spread, has experienced a revival in the past decade after years of sleepy growth. Group sales have risen three-fold since 2013, while those of Biscoff-branded goods have almost quadrupled as recipes ranging from Biscoff cheesecake to Biscoff espresso martinis proliferate on social media, particularly on TikTok, where they garner millions of views.
Its popularity has soared in recent years, boosted by increased demand during the pandemic for snacks and at-home baking as well as the explosion of user-made videos suggesting recipes. Boone said content on TikTok has helped convert the nearly century-old company into a "young and interesting" brand which it has capitalised on through partnerships with global brands including McDonald's, KitKat, and Krispy Kreme. While the company acknowledges that its TikTok success with Gen Z was accidental, it plans to increase its marketing budget this year and has hired an agency to work on its media strategy, including partnerships with TikTok influencers.
The key insight here is what Lotus didn't do. Many companies, seeing organic viral success, immediately attempt to replicate or control itâoften killing the authenticity that made it work in the first place. Lotus took a more restrained approach: embracing the user-generated content, celebrating the creativity of fans, but not trying to engineer virality.
The B2B Ingredient Strategy
Lotus Biscoff products are also used as ingredients by other companies and food manufacturers. A good example is Cake Box and other cake makers using Biscoff spread and biscuits in their products. This has also been a part of the company's strategy whereby it partners with other companies like Danone, Nestle and McDonald's who use Biscoff in their products. These products made with Lotus have an official distinctive red seal saying "Created with Lotus Biscoff".
In recent years, Lotus has made a splash with a series of exciting brand collaborations. You might have seen the buzz around Biscoff's partnerships with major names like Nestlé, Krispy Kreme, and McDonald's. These collaborations have led to some deliciously innovative creations, such as the indulgent Lotus Biscoff McFlurry at McDonald's and the irresistible Lotus Biscoff doughnuts at Krispy Kreme.
This B2B ingredient strategy represents a sophisticated understanding of brand building. When McDonald's sells a Biscoff McFlurry or Krispy Kreme sells a Biscoff doughnut, they're effectively paying to advertise the Lotus brand. Every consumption occasion outside of direct Lotus retail sales nonetheless reinforces brand awareness and creates trial opportunities.
IX. Global Manufacturing: Breaking the Belgium-Only Model
The American Factory Revolution
For decades, every Biscoff cookie consumed anywhere in the world was baked in Lembeke, Belgium. This remarkable centralization ensured quality consistency but created obvious logistics challenges as the brand globalized.
Historically Biscoff was produced (and continues to be produced) in Lembeke, Belgium. In 2019, a new manufacturing facility was opened in Mebane, North Carolina in the United States, marking the first production of Biscoff outside of Belgium.
Lotus' facility in Mebane, established in 2017, was the company's first production facility in the United States.
In 2016 the US becomes the biggest sales market for LotusÂź BiscoffÂź. The American market had grown so significant that shipping cookies across the Atlantic no longer made economic or environmental sense.
"We are thrilled to further expand our manufacturing footprint in North Carolina," says Margo Joris, General Manager of Lotus Bakeries US. "This expansion project will substantially increase our capacity in our plant in Mebane." "Lotus Bakeries' total investment in our state is expected to exceed $200 million."
The Thailand Expansion
It hopes to have a new regional facility to produce Biscoff biscuits up and running by 2026. Belgium-based biscuit and snacks maker Lotus Bakeries is to build a production facility in Thailand as part of plans to expand in the continent.
Lotus Bakeries announced plans to expand operations beyond its facilities in Europe and the United States with the construction of a Biscoff cookie plant in Thailand. The facility is projected to become operational by 2026. Lotus recently reached an agreement with a developer in the industrial area of the Chonburi province.
The criteria for selecting Thailand were its central location in the region, the existing presence of a strong food industry, the associated availability of raw materials, the country's culture and labour regulations and cost. The Chonburi province is part of the so-called Eastern Economic Corridor that is being developed by the Thai government as an economic zone for the region.
The factory is estimated to be operational in 2026. Lotus Bakeries has ambitious plans for LotusÂźBiscoffÂź to become the third largest cookie brand in the world.
Natural Foods Production
Since 2019 a production facility for the group's natural foods' Brand BEAR has been in Wolseley, South Africa. In early 2024, the nÄkd production facility, adjacent to the BEAR production site, was built.
The South Africa facility for BEAR and nÄkd demonstrates Lotus's sophisticated approach to production optimization. Rather than forcing all products through centralized European facilities, the company locates production near raw material sources (South African fruit for fruit-based snacks) and key markets.
X. Inflection Point #4: The MondelÄz Partnership
A Historic Alliance
MondelÄz International and Lotus Bakeries announced a strategic partnership to expand and grow the Lotus BiscoffÂź cookie brand in India, and to develop exciting new chocolate products combining the unique, caramelized, crunchy BiscoffÂź taste and texture with MondelÄz's iconic Cadbury, Milka and other key chocolate brands in Europe, with the option to expand globally.
This June 2024 announcement represented a watershed moment for Lotus. For the first time in its history, the company was allowing another manufacturer to produce Biscoff cookies. Through this partnership, MondelÄz will leverage its extensive distribution network and local market presence to manufacture, market, distribute and sell BiscoffÂź cookies in India.
The India Opportunity
"If you want to become a global brand, India has to be part of it," Boone said, acknowledging the market's scale and complexity. He noted that India's fragmented retail structure and diverse distribution channels necessitate strong local partnerships. "We could not conquer India on our own. We needed a very strong partner like MondelÄz to really create the brand here," he added.
Mondelez India has expanded its premium cookie portfolio by bringing Lotus Biscoff cookies into the country and aims for India to be among the top three countries for the biscuit. The maker of Dairy Milk chocolates will also manufacture the cookie, which originates in Belgium, in India. Mondelez India will also lead the brand's marketing and distribution. It will be available across traditional trade (mom-and-pop stores), modern trade (supermarkets and hypermarkets), e-commerce, and quick commerce.
Biscoff will start at a price point of Rs 10 and will be available across five pack sizes. The cookie is being manufactured at a facility in Alwar, Rajasthan.
Mondelez will source locally but Lotus Bakeries will provide a secret ingredient mix to protect the Biscoff recipe. Other manufacturing IP is licensed out to guarantee Biscoff's unique caramelised taste and unique crunchy texture.
Co-Branded Innovation in Chocolate
Dirk Van de Put, CEO of MondelÄz International and Jan Boone, CEO of Lotus Bakeries announced the launch of the CĂŽte d'Or L'Original with crunchy Lotus Biscoff pieces: a new co-branded chocolate tablet available in milk and white chocolate with crunchy Lotus Biscoff pieces. The launch marks another milestone in the strategic partnership between the two companies, which was announced in June 2024. The partnership between MondelÄz International and Lotus Bakeries has a dual focus: they are jointly developing new chocolate products that combine MondelÄz International's iconic chocolate brands such as CĂŽte d'Or, Cadbury and Milka with the unique, crunchy Biscoff taste and texture.
New co-branded chocolate innovations under the brands of CadburyÂź, MilkaÂź and Cote d'OrÂź were launched in the UK and Europe in recent months. In all those countries, the CadburyÂź-BiscoïŹÂź or the MilkaÂź-BiscoïŹÂź tablets are the number 1 or number 2 selling SKU in the category.
The Ice Cream Expansion
Lotus Bakeries Corp. and Mondelez International have expanded their recent licensing partnership to include UK-based global ice cream manufacturer Froneri International. Belgium-based Lotus Bakeries said it has partnered with Froneri to accelerate the growth of its Lotus Biscoff brand in the ice cream segment. Plans call for Froneri to begin producing, marketing and selling Biscoff ice cream in several European countries in 2026 and then to gradually expand to other nations.
"Partnering with Froneri will unlock new opportunities for BiscoffÂź, allowing us to leverage their extensive expertise in product development, market insights, and industry-leading knowledge. This collaboration will strengthen our position in the ice cream sector, enabling Biscoff to grow into a global ice-cream brand."
The company said teaming up with Froneri allows it to "fully focus on cookies and spread," while Biscoff Chocolate and Biscoff Ice Cream serve as "brand amplifiers". In a statement, Lotus Bakeries said ice cream, launched internationally in 2019, has "significantly" contributed to Biscoff's growth.
XI. Financial Performance & Market Position
2024 Results: Another Record Year
Belgian multinational snack food company Lotus Bakeries reported revenue growth of 16% to âŹ1.23 billion in its financial year 2024. CEO of Lotus Bakeries, Jan Boone, commented, "This increase was primarily driven by a record volume growth."
EBITDA for the period grew by 17% to âŹ243 million, while net profit increased by âŹ23 million to âŹ152 million â accounting for 12.4% of revenue. Strong cash flow allowed the company to reduce net financial debt to 0.5 times EBITDA while investing over âŹ120 million in capacity expansion.
In 2024, Lotus Biscoff surpasses the EUR 600 million revenue mark.
Geographic Footprint
Biscoff is currently available in over 80 markets worldwide, with the United States, the United Kingdom, and France being its largest contributors. These three regions account for more than half of Lotus Bakeries' revenue.
CEO Jan Marcel Mathieu Boone concluded in the H2 2023 earnings call: "Three countries represent half of our Biscoff sales. That's the United States, the United Kingdom and France. Eight countries represent 75% of our total Biscoff sales."
Market Capitalization & Index Inclusion
On 31 December 2024, market capitalisation of Lotus Bakeries amounted to EUR 8,796.62 million.
In March 2024, the Group was admitted to the Euronext BEL-20 Index. This inclusion in Belgium's flagship equity index marked Lotus's transformation from a regional bakery into a nationally significant companyâone of Belgium's most valuable listed enterprises.
The Valuation Question
At the end of 2024 the company had a P/E ratio of 63.1.
LOTB.Y is expensive based on its Price-To-Earnings Ratio (41.1x) compared to the peer average (17.4x).
The valuation debate around Lotus reflects a fundamental tension in investor psychology. On one hand, the company's track record of consistent double-digit growth justifies a premium multiple. On the other hand, consumer packaged goods companies typically trade at more modest multiples, and sustaining such growth rates indefinitely is mathematically impossible.
The popularity of Biscoff on social media has raised concerns over whether its rapid growth and newfound fame can be sustained. "When products get a big boom on TikTok, sometimes they ride that wave and they ride it, and they forget they have to keep re-engaging," said Sally Lyons Wyatt, executive vice-president at consumer research firm Circana. The company's steep share price increase and the challenge of cracking the Asian market have also worried analysts.
XII. Strategic Playbook & Investment Framework
The Lotus Model: Key Principles
1. Product Focus Over Diversification Lotus has resisted the temptation to become all things to all consumers. The company's core competencyâunderstanding how to create and market products with the distinctive Biscoff tasteâhas been deepened rather than diluted. Every format extension (spread, ice cream, chocolate products) shares the same flavor DNA.
2. Family Control Enables Long-Term Thinking The family's continued ownership and control â still retaining over 50% of the shares and voting power â has likely been a crucial factor in preserving the brand's quality and enduring success.
3. Distribution Innovation From café service to airline partnerships to McDonald's McFlurries, Lotus has consistently found distribution channels that deliver both sales and sampling at scale. The airline strategy in particular demonstrates how creative distribution can substitute for massive advertising spend.
4. Strategic Patience Between Inflection Points Major innovations at Lotus are separated by decades, not quarters. The company perfected its original cookie for 50+ years before launching the spread. The spread existed for 15+ years before the social media explosion. This patience allows each innovation to mature fully before the next is attempted.
5. The Ingredient Brand Model These products made with Lotus have an official distinctive red seal saying "Created with Lotus Biscoff". By positioning Biscoff as an ingredient that other brands incorporate, Lotus turns its customers' marketing spend into Lotus brand awareness.
Porter's Five Forces Analysis
Supplier Power: Low to Moderate Biscoff's ingredientsâwheat flour, sugar, vegetable oils, spicesâare commodity inputs available from multiple suppliers. The proprietary "secret ingredient mix" is produced internally. Supplier bargaining power is limited.
Buyer Power: Moderate In retail channels, large grocers have significant negotiating leverage. However, Biscoff's strong brand recognition and consumer demand provide countervailing power. The B2B ingredient business reduces dependence on any single channel.
Threat of New Entrants: Low Creating a "caramelized cookie" product is technically possible for any bakery. But building 90+ years of brand equity, global distribution, airline partnerships, and B2B relationships represents a nearly insurmountable barrier.
Threat of Substitutes: Moderate Consumers could choose other cookies, other spreads, or no indulgent snacks at all. However, Biscoff occupies a unique taste position that substitutes struggle to replicate.
Competitive Rivalry: Low to Moderate In the specific caramelized cookie/cookie butter category, Lotus faces limited direct competition. In the broader cookie and spread categories, competition from giants like MondelÄz (now a partner rather than pure competitor), NestlĂ©, and Ferrero is intense.
Hamilton Helmer's 7 Powers Framework
Brand: Strong and growing. Biscoff commands premium pricing and generates intense consumer loyalty. The strength of the Lotus Biscoff brand is probably best presented by when the company changed the name of its classic speculoos biscuits to Biscoff. There was an outrage on social media as the consumers wanted to keep the classic speculoos name and hashtags like #JeSuisSpeculoos started appearing on social media. Such a zealous reaction shows that Lotus's customers are emotionally involved with the product and brand.
Scale Economies: Moderate. Production scale in Belgium, US, and soon Thailand creates cost advantages, but not dramatically so versus large CPG competitors.
Network Effects: Weak to moderate. The B2B ingredient strategy creates some network dynamicsâmore Biscoff products in market increases brand awareness, which increases demand for Biscoff ingredientsâbut these effects are limited.
Counter-Positioning: Strong historically. Major CPG players long ignored the caramelized cookie category as too niche. By the time Biscoff reached scale, Lotus had built insurmountable distribution and brand advantages. The MondelÄz partnership represents a fascinating evolutionârather than competing, the largest player chose to collaborate.
Switching Costs: Low for individual products, moderate for B2B relationships. A consumer can easily switch cookies. A Krispy Kreme or McDonald's that has built menu items around Biscoff faces higher switching costs.
Process Power: Moderate. The proprietary caramelization process and recipe consistency across 90+ years represent genuine process advantages. However, these could theoretically be reverse-engineered over time.
Cornered Resource: Strong. The Biscoff brand itself, with its airline history, viral social media presence, and emotional consumer connections, represents an unreplicable resource.
Key Performance Indicators to Watch
For investors seeking to monitor Lotus's ongoing performance, two metrics stand out as most revealing:
1. Lotus Biscoff Revenue Growth Rate As the primary growth engine representing 56% of branded revenue, Biscoff's performance is the single most important indicator. The brand has achieved 17% CAGR over the past decade. Any sustained deceleration below low-double-digits would warrant attention. Watch for: US growth (largest market), India ramp (MondelÄz partnership), and Asia-Pacific development (Thailand factory impact).
2. Volume Growth vs. Price/Mix In 2024, growth was "almost exclusively driven by record volumes." This is the healthiest kind of growthâgenuine demand expansion rather than price increases. If revenue growth becomes predominantly price-driven while volumes stagnate, it may signal market saturation in key geographies.
XIII. The Road Ahead: Bulls vs. Bears
The Bull Case
Geographic Runway Remains Long: Three countries generate half of Biscoff sales. Eight countries generate 75%. With presence in 80+ markets but meaningful scale in fewer than ten, the mathematical runway for continued expansion is substantial.
India Partnership Opens Massive Market: With MondelÄz handling local production and distribution, India could become a top-five Biscoff market within a decade.
Better-For-You Portfolio Diversifies Risk: The BEAR, nÄkd, and TREK brands provide exposure to the health-conscious consumer trend, reducing dependence on indulgent snacking.
Social Media Tailwinds Continue: Unlike paid advertising that stops when budgets are cut, user-generated Biscoff content is self-perpetuating as new consumers discover the brand.
Thailand Factory Unlocks Asia-Pacific: With local production beginning in 2026, Lotus can pursue aggressive Asia expansion with fresher products and lower logistics costs.
The Bear Case
Valuation Leaves No Room for Error: At 40-60x earnings (depending on measurement period), the stock prices in continued strong execution. Any meaningful slowdown could trigger significant multiple compression.
TikTok Fame Is Ephemeral: Viral products can fade as quickly as they rise. If Gen Z moves to the next food trend, growth could decelerate rapidly.
Category Maturation Looms: Cookie butter has limited direct competition, but the category may approach natural limits in developed markets.
MondelÄz Partnership Cuts Both Ways: While beneficial for India and ice cream expansion, having the world's largest cookie company produce Biscoff creates some long-term strategic ambiguity.
Family Control Has Succession Risk: Three generations of successful family leadership is remarkable but not guaranteed to continue indefinitely.
Risks and Regulatory Considerations
Supply Chain Concentration: Despite global sales, Biscoff production remains concentrated in three locations. Any disruption to the Belgium, US, or (soon) Thailand facilities could significantly impact supply.
Commodity Cost Volatility: Wheat, sugar, and vegetable oils are subject to price fluctuations driven by weather, geopolitics, and energy costs.
Health Trends: Consumer preferences continue shifting toward lower-sugar, lower-calorie options. While the Natural Foods portfolio provides some hedge, Biscoff remains a fundamentally indulgent product.
Currency Exposure: With euro-denominated costs but significant USD, GBP, and Asian currency revenue, foreign exchange movements can impact reported results.
XIV. Conclusion: What Lotus Teaches Us About Building Enduring Brands
In an era obsessed with disruption, pivot strategies, and rapid scaling, Lotus Bakeries offers a masterclass in patience. The Boone family took 50 years to perfect a single cookie. They took another 30 years to turn that cookie into an airline staple. They waited until 2008 to launch their first significant line extension. They didn't open their first non-Belgian factory until 2019.
At every stage, the temptation to accelerate must have been immense. Why not franchise production earlier? Why not launch dozens of flavor variants? Why not sell to a larger conglomerate offering an irresistible premium?
The answer lies in understanding what Lotus actually is: not a cookie company, but a taste company. The distinctive caramelized flavor of Biscoff is the asset. Everything elseâcookies, spread, ice cream, chocolate collaborationsâare delivery mechanisms for that taste experience.
"If somebody thinks about a coffee, we want them to think about Biscoff," said Isabelle Maes, chief marketing officer at Lotus Bakeries. This singular focus on taste associationâcoffee equals Biscoffâhas guided ninety years of strategy.
For long-term investors, Lotus presents both an inspiring case study and a challenging valuation puzzle. The business quality is exceptional. The track record is remarkable. The growth runway appears substantial. But the price already reflects much of this quality, requiring continued flawless execution to justify current multiples.
What cannot be denied is that three brothers in a tiny Flemish village created something extraordinaryâa taste that now delights millions daily, from airplane tray tables to TikTok cheesecakes, from Belgian cafĂ©s to Indian convenience stores. In building that legacy, they've also built one of Europe's most valuable consumer goods companies.
The cookie, it turns out, did conquer the world.
About this analysis: This article synthesizes publicly available information about Lotus Bakeries including company filings, press releases, and third-party reporting. It is intended for educational purposes and does not constitute investment advice.
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