Mondelez International looking beyond the pandemic | 2020-09-10

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CHICAGO – Dirk Van de Put, the chairman and chief govt officer of Mondelez Worldwide, Inc. calls the coronavirus (COVID-19) “the most important trial ever within the client items trade.” Because the pandemic unfold and demand shifted away from away-from-home consuming events, shoppers stocked up on packaged meals, together with varieties they could by no means have tried earlier than. Now Mr. Van de Put and his friends within the client packaged items trade should determine easy methods to maintain as a lot of these new shoppers as potential.

Throughout a Sept. 9 presentation on the digital Barclays International Client Staples Convention, Mr. Van de Put shared how the accelerated client trial affected a few of Mondelez’s manufacturers. The corporate’s US biscuits enterprise, for instance, gained 2.5 factors in family penetration when in comparison with the identical interval through the earlier yr.

“…This has prolonged our main place,” Mr. Van de Put stated. “Our penetration improve is double that of our nearest competitor.”

For the reason that finish of February 80% of US households have purchased a Mondelez biscuit product not less than as soon as, stated Mr. Van de Put. Of that 80%, 90% turned repeat consumers of Mondelez biscuits.

The demand has trickled down from the corporate’s mega-brands like Oreo and Ritz to such manufacturers as Honey Maid, Newtons, Nilla and Teddy Grahams. Fifty p.c of the consumers of these lesser-known manufacturers have been new, in line with the corporate.

Now, with the COVID-19 stock-up interval within the rearview mirror, administration is shifting assets to keep up the momentum. One initiative features a “huge improve in working media,” Mr. Van de Put stated.

“US biscuits would see a 60% improve of their A&C within the second half vs. final yr,” he stated. “A few of these native jewels, (like) Honey Maid, will see four-times that stage of funding they’d final yr.”

With an financial recession presumably taking maintain, the corporate is also specializing in worth and package deal structure.

“Within the US, that takes the type of multi-buys, the place we try to hyperlink manufacturers with one another,” Mr. Van de Put stated. “So, for example, purchase Oreo and Ritz collectively or extra multipacks and household packs as a part of our assortment.”

The corporate introduced in July its plans to take away 25% of its stock-keeping models (SKUs) to simplify its provide chain and cut back price and inventories. Luca Zaramella, chief monetary officer, stated the initiative additionally improves use of working capital and he doesn’t see it impacting shoppers.

“So far as client decisions are involved, we actually imagine that with 98% plus of the portfolio having higher service and higher worth is healthier for shoppers, too,” he stated. “The identical goes for innovation. I do not suppose we don’t like innovation. We like innovation, however we like the proper innovation. We wish innovation to be significant for shoppers. In order that’s actually what’s behind this.”

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