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Mondelēz Refocuses on 'Well-Being Snacks'

DEERFIELD, Ill. — Even as Mondelēz International launches aggressive cost-reduction program, the snack maker is turning its innovation strategy to better-for-you snacks.

“We intend to become the global leader in well-being snacks,” said Mark Clouse, executive vice president and chief growth officer, “with 50% of our portfolio in the well-being space by 2020, up from more than a third of total revenue today.

“Our goal is to simplify and enhance the ingredient and nutritional profile of our base business while also focusing on breakthrough innovation to address consumers’ well-being needs. Over the next five years, we expect to focus 70% of our new-product development efforts on well-being platforms.”

E-commerce is another key focus area for the company, addressing the intersection between time compression and technology in snacks. Through a dedicated team, the company is optimizing existing e-commerce platforms by converting every consumer connection into a purchase opportunity, as well as building the next-generation portfolio to take advantage of those incremental growth opportunities.

“We estimate that e-commerce could become one of the fastest-growing platforms within our company, increasing from less than $100 million in revenue today to as much as $1 billion by 2020,” said Clouse.

Finally, the company is broadening its portfolio to target aspirant consumers on one end of the spectrum and affluent consumers on the other to respond to shifts in income distribution. “By doing so, the company is maximizing its category reach and driving incremental consumers to its brands and categories,” the company stated.

The refocusing comes as Mondelēz “reconfigures” its manufacturing network. Since 2012, Mondelēz International has closed, sold or streamlined 78 production facilities and completed or announced the construction of 14 greenfield or brownfield sites, with 40 new state-of-the-art manufacturing lines expected to be on-stream by year-end 2015.

Mondelēz International Inc., East Hanover, N.J., is a world leader in biscuits, chocolate, gum, candy and powdered beverages, with billion-dollar brands such as Oreo, Nabisco, Cadbury, Trident and Tang, among others.


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