Mondelez’s Multiyear Supply Chain Play for Snack Market Growth
Mondelez International has launched a multiyear program to improve its supply chain and packaging capabilities and expects to start seeing benefits from the investment by the beginning of 2027.
The localized supply chain, which builds consumer connection while allowing the manufacturer to quickly bring new products to market, will be combined with investments in new product development to grow the company’s business in North America and beyond.
Through statements shared at CAGNY, Mondelez International laid out six key trends to address:
- Flat grocery basket sizes
- Unease with consumer prices
- Value searchers changing channels
- Higher-income consumers looking for premium options
- Health-conscious consumers seeking functional snacks
- Increase in on-the-go consumption
“It is critical that our brands stand out more than others,” CEO Dirk Van de Put said in statements shared at the event. “The first step is increasing our investments to boost share of voice and increase awareness. In store, we are aiming for a more standout presence and bigger, more exciting activations. And we are continuing to reconfigure our price pack architecture to ensure a broad range of offers to meet critical price points.”
Portfolio and Packaging Shifts
Inflation is outpacing U.S. wage increases, and higher prices are leading 42% of consumers to cut back on snack purchases, according to a February survey from research firm NIQ. Mondelez is responding by offering more of its brands in portable snack packs priced under $3. The company is also increasing supply chain capacity for value packs.
“We're leveraging our direct store delivery system through its continuous in-store presence to drive greater visibility of affordable offerings via increased displays, and we are activating a comprehensive supply chain improvement program to optimize costs,” Van de Put said. “Consumers continue to shift to new channels looking for better value, so we're investing aggressively to expand total distribution points in club, value and convenience stores as well as, of course, e-commerce.”
Also: Mondelez names COO
While growth in the cookie category has been overall flat, premium indulgence cookies have seen a small uptick. Mondelez will be investing more in its Tate’s Bake Shop portfolio to meet the demand while expanding its premium Oreo varieties. A new Sargento Cheese Bakes by Nabisco snack will also appeal to higher-income shoppers.
Better-for-you snack products are also outpacing category growth. Mondelez is prioritizing that segment by launching Oreo Zero Sugar and adding more protein bars under its Perfect Bar, Builders and Zbar brands.
With one in four of every snack now being eaten out of home, Mondelez is adding more multipacks and portable packages and investing in morning snacks like belVita Bites and 7Days Croissants.
“Our plan focuses on accelerating consumer-centric product offerings, increasing investments in working media and in-store presence, and activating a robust supply chain optimization program,” Van de Put said. “We are already starting to see the first effects with strong growth over the last three months in both our largest mass retail partner and in the value chain.”
