Mondelez on the Path of Transforming Its Portfolio for New Snacking Needs

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Mondelez International, Inc. has made it a priority to lead the future of snacking. To do so, the company must continue to evolve its portfolio to meet consumers’ snacking needs, said Dirk Van de Put, Chairman and Chief Executive Officer.

Details on the Endeavor

Mr. Van de Put identified the evolution of its portfolio as one of the core elements that make up Mondelez’s ambition to build a sustainable snacking company. He discussed Mondelez’s progress on a wide range of initiatives as part of a May 26^thconference call in connection with the release of the company’s “2020 Snacking Made Right Report.” The report highlights the company’s significant progress toward achieving its 2025 sustainable and mindful snacking goals.

The company said 16% of global snacks net revenue came from portion-control snacks in 2020. Meanwhile, 14% of its products featured the Mindful Snacking: Snack Mindfully portion icon in 2020. Mondelez said it is “on track” to get the icon placed on all packs by 2025.

A Focused Approach

Mr. Van de Put said Mondelez’s well-being approach is evolving along four key areas of consumer interest: permissible indulgence, better-for-you products, authentic, and natural ingredients, and functional nutrition.

“Permissible indulgence is about the snacks you know and love but in smaller portions or by switching to darker chocolate or more permissible inclusions like fruit or nuts,” he said. “Better-for-you products have a more healthy composition like gluten-free Oreo or reduced-sugar candy from The Natural Confectionery Co. in Australia. And in the area of authentic and natural products, we launched Philadelphia with 100% natural ingredients in Europe. And lastly, in functional nutrition, it is about products with ingredients that boost your health like the vitamins and minerals in Bournvita in India.”

Overall, revenue aligned with the four key areas of consumer interest accounted for approximately 30% of total revenue in 2020, Mr. Van de Put said.Mondelez also has turned to acquisitions to boost its well-being credentials.The sourcing of four ingredients — cocoa, wheat, dairy, and palm oil — makes up Mondelez’s biggest contribution to its end-to-end carbon emissions. During 2020 the company said it made progress on advancing its sustainability agenda across the ingredients.