Mondelēz strategy targets key chocolate and biscuit market growth
Mondelēz International has unveiled its strategy for accelerating growth within the company, which will centre on reshaping its portfolio honing in on chocolate and biscuit ranges, writes Neill Barston.
In an assessment of its global operations, the business asserted that its latest plans would help drive an increased long-term organic net revenues of between 3-5%.
The US-headquartered company, which will be returning to Sweets & Snacks Expo this month, said it will continue to prioritise growth, execution and culture as three pillars of its strategy – investing in differentiated marketing and sales capabilities, while strengthening its local-first operating model to further empower employees and promote a growth culture.
Furthermore, the company, which has its American base in Chicago, has also placed renewed focus on sustainability as a fourth pillar for long-term growth strategy, using its Snacking Made Right agenda. This will centre on delivering environmental, social and governance priorities, which it added will be based on a principle of driving positive change at scale.
“Our competitive advantages in the marketplace and focused strategy on global snacking leadership give us great confidence in our ability to sustain strong top- and bottom-line growth for many years to come,” said Dirk Van de Put, Chairman & Chief Executive Officer, Mondelēz International.
“Building on our category leadership, favourable geographic footprint, and the power of our iconic brands, we are well positioned for stronger growth in the decade ahead.”
The company, which is behind major brands including Oreo, Cadbury and Milka, said that its goal is to generate 90% of revenue in chocolate and biscuits, including baked snacks segments.
Consequently, the business said it is targeting strengthening its presence in its core categories in major markets by building on existing distribution, expanding in high-growth channels and leveraging its iconic brands to establish multi-category leadership positions.
Furthermore, the company said that it will drive value through organic growth and targeted acquisitions that expand its presence in chocolate, biscuits and baked snacks by filling geographic gaps and extending into under-represented segments and price tiers. The eight acquisitions Mondelēz International has completed or announced since 2018 add $2 billion in annual revenue, and have had an average growth rate in the high single digits.
Additionally, the Company announced plans to divest its developed market gum business after completing a strategic review over the past year. The Company also disclosed its intention to divest the global Halls business. The International will continue to operate other brands and products within its candy business, as well as its emerging market gum business.
Investing in Capabilities and Culture
To enable its refined growth strategy, Mondelēz International announced significant investments in capabilities and culture – including investing more than $1 billion to become the digital commerce snacks leader. The Company aims to deliver 20% of revenues from digital channels by 2030, up from 6% of 2021 revenues.
Along with its investments in technology, the Company is investing behind future-forward commercial growth capabilities – including integrated agile processes to drive simpler ways of working; expanded commercial excellence training programs; and increased digital learning opportunities.
“Our growth ambition will not be possible without the passion, dedication and commitment of our people – the very best in the consumer packaged goods industry,” Van de Put said. “To accelerate our growth and focus, we are taking our talent and culture strategy to the next level – by doubling down on initiatives to advance diversity, equity and inclusion; expanding investment in top talent programs; and rolling out a global, holistic employee well-being program.”