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Latest headlines

Mondelez to focus on health snacks

By Jeremy Gerrard
Mondelez International, D.E. Master Blenders 1753 complete merger
September 10, 2015

Mondelez International said it plans to become the global leader in well-being snacks by having 50 percent of its portfolio in this category by 2020. The company also committed to optimizing its existing e-commerce platforms and broaden its portfolio, targeting all consumers in response to shifts in income distribution.

"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,” said Mark Clouse, executive vice president and chief growth officer. “Over the next five years, we expect to focus 70 percent of our new product development efforts on well-being platforms."

Company executives made the announcement at the Barclays Global Consumer Staples conference Thursday where investors were updated on aggressive cost-reduction programs and plans to accelerate revenue growth.

Brian Gladden, executive vice president and CFO, highlighted the company's efforts to reconfigure 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.

According to Mondelez, the key to growth will be a focus on two strategies: accelerating base business growth and filling in key consumer spaces.

 In terms of accelerating base business growth, the company is reinvesting cost savings into additional advertising and consumer support, while also shifting spending to digital and social channels. In addition, the company will expand packaging formats to increase accessibility to new households and new channels. 

KEYWORDS: consumer trends food and beverage industry trends snacks

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Jeremy Gerrard was Food Engineering's Digital/Online Editor. He is a graduate of Auburn University with a degree in journalism. His previous work experience includes years spent as a reporter with the Daily Local News out of Chester County, PA. In addition to writing feature articles for Food Engineering, Jeremy covered the Dry Processing, Field Reports and People and Industry news sections.

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