Mondelēz International seeks to capitalize on the popularity of its snack brand by making a major foray into the $71 billion global cakes and pastries category.
“Cakes and pastries are segments where our brand can flourish,” he said. martin Renault, eExecutive Vice President and Chief Marketing and Sales Officer Mondelez, and Annual Consumer Analyst Group of New York Conference in Florida. “circleYou can quickly build a very strong leadership position. ”
Renault added that the category is lacking ‘A very big and strong player’
Fragmentation gives Mondelēz the opportunity to use well-known brands such as Oreo, with annual sales of over $4 billion. Give & Go, maker of brownies, cupcakes and other products, further expands its reach in cakes and pastries.
Mondelēz, a global snacks giant with 2022 sales of $31 billion, has established a dominant position in chocolate as the second largest player in the $120 billion category with 12.7% ownership.
The company is even stronger with branded biscuits such as Oreo. bElvita and Trisket, It is the market leader with a 17.2% share of the $111 billion segment.
Despite an increase in cake and pastry revenue from $500 million in 2018 to $1.6 billion last year, Mondelez remains third in the $80 billion segment with a 3.2% share.The main pillars of the company’s future growth are its 2020 US acquisitions, Give & Go, and Chipitaa player in croissants and baked goods in Central and Eastern Europe, one year later.
brittany QuattrokiEdward Jones analysts say a shift to cakes and pastries Mondelez It is about innovating and maximizing the valuable assets that we have built up with many snack brands. The new product also provides a way for snack makers to keep their products fresh and relevant to consumers.
“Take a strong brand that consumers are familiar with.” Quattroki Said. “You don’t have to build a wild brand. Take what you have.”
It’s not hard to see the benefits Mondelēz could be reaped by going deep into c.Aces and pastries.This category is big in every global market with snack giants With a presence, the space has posted a compound annual growth rate of 4% over the past three years, the Chicago-based company said.
again Covers scenes with new ideas that make use of long-established brands, such as birthday parties and school lunches. Mondelez currently sells Oreo Cakestars soft snack cakes in the United States and China and Cadbury Chocobakes, chocolate-filled cookies and layered cakes in India.
The company is exploring opportunities to use Oreos in more fresh bakery items such as cupcakes and donuts on its Give&Go platform in North America, while expanding its chocolate brand to Chipita’s 7Days family of croissants and other pastries in Europe. We are looking at opportunities to introduce
Mondelez A presence in cakes and pastries brings established brands into new categories, such as moving Oreo from cookies and Cadbury from chocolate. This kind of push could increase consumer awareness across stores and make shoppers more likely to add a package of cookies to their cart if they purchase Oreo cupcakes.
Renault said before Mondelēz divides brands into separate categories. The company determines whether a new product has enough in common with its core product to begin with, whether it will be accepted or confused by consumers. Mondelēz doesn’t just put one of its prized brand logos on new products.I want to check the product It maintains the texture and taste that people have come to expect from original items.
“IThis is where marketing and brand understanding becomes absolutely critical. ” Renault Said. “circlee is really trying to bring everything [of] What the brand means for different segments. “
