Mondelēz CEO sketches out snack growth strategy and financial targets
At a recent meeting with analysts and investors in Boston, Massachusetts in the US, the CEO of the Oreos maker noted its new tagline builds on its promise to offer consumers “the right snack, for the right moment, and made the right way.
“This means offering a broad range of delicious, high-quality snacks to satisfy every consumer occasion, with more sustainably sourced ingredients that consumers feel good about,” Van de Put said.
Lead the future of snacking
He added: “With strong leadership in our categories, an unparalleled portfolio of global and local brands and a solid footprint in fast-growing markets, we are uniquely positioned to lead the future of snacking.
“We are at the moment a biscuit, chocolate, gum and candy company. But if you think about Oreos, where you already can see the example, Oreos are in ice cream, yogurt, and you can find Oreo brownie.
“So we have brands that can play across these categories and we are going to do a bigger driver towards that also.”
Van de Put also disclosed key plans to grow Mondelēz’s snacks portfolio:
- A more holistic view of consumer snacking behaviors to sharpen brand positioning in clear demand spaces;
- Transformation of marketing and digital capabilities to increase ROI;
- Balanced investments in both global and local heritage brands to achieve higher growth;
- The creation of a more agile organization with accelerated innovation capabilities;
- Brand extension into new markets and snacking adjacencies;
- Increased investments in channels such as e-commerce;
- Accelerating exposure in higher-growth geographies; and
- Leveraging partnerships and M&A to expand into new markets and snacking adjacencies.
At the meeting, Mondelēz reaffirmed its full-year 2018 outlook with organic net revenue growth at 1% to 2%.
In 2019, the company expects its organic net revenue to increase 2% to 3%.
Luca Zaramelle, CFO at Mondelēz, said: “We are confident that our new strategic plan will create sustained long-term shareholder value, by accelerating our top-line growth, continuing to focus on productivity gains and improving our cash flow generation.
“We expect our new strategy to deliver consistent adjusted EPS growth at constant currency in the high-single digits and strong free cash flow in the years ahead,” he added.