Mondelez International Inc in Snacks (World)

April 2023

© Euromonitor
© Euromonitor International
International 2023.
2023. All rights
All rights reserved.
reserved.
 This PowerPoint presentation includes proprietary information
from Euromonitor International and cannot be used or stored with
the intent of republishing, reprinting, repurposing or redistributing
in any form without explicit consent from Euromonitor International.

For usage requests and permission, please contact us

[Link]

The data included in this report is accurate according to

Euromonitor International´s market research database,
at time of publication: April 2023

© Euromonitor International
Contents

Introduction
State of play
Exposure to future growth
Competitive positioning
Sweet biscuits
Confectionery
Savoury snacks
Key findings
Appendix

© Euromonitor International
 Introduction

© Euromonitor International
 INTRODUCTION 55

Scope
The COVID-19 pandemic had a positive
impact in Mondelez’s snacks, specifically the
sweet biscuits category, as consumers had to
spend more time in their homes due to
lockdowns. Moreover, as COVID-19
vaccination programmes positively impacted
the worldwide population, impulse goods and
on-the-go consumption experienced a strong
increase. Confectionery and Mondelez’s
brands overall once again significantly
benefited due to consumers resuming their
pre-pandemic activities and habits.

Disclaimer
Much of the information in this briefing is of a
statistical nature and, while every attempt has
been made to ensure accuracy and reliability,
Euromonitor International cannot be held
responsible for omissions or errors.
Figures in tables and analyses are calculated from
unrounded data and may not sum. Analyses found
in the briefings may not totally reflect the
companies’ opinions, reader discretion is advised.

© Euromonitor International
 INTRODUCTION 66

Executive summary

Mondelez redefines its While Mondelez shifts focus to grow share of its core snacking categories, chocolates and
snacking core with a focus biscuits, there remains ample opportunities around the how (innovative formats) and where
on sweet snacks (geographical expansion) plays can be made to build on its dominance of sweet snacks.

Diving deeper into core

Mondelez states that it will work to play across the full spectrum of biscuits and baked snacks
biscuit and chocolate
by extending its presence into a much broader range, including cakes, pastries and snack bars.
categories

Digital, experiential and more consumer need-orientated marketing. Mondelez is set to invest
Marketing as a key pillar for a significant number of resources in these three marketing strategies to greatly expand its
Mondelez's growth digital media and commerce footprint in order to facilitate higher degrees of personalisation at
every consumer touchpoint.
Broader but deeper focus on state of affairs in key markets such as the UK and the US, and
“Snacking Made Right”
developing markets such as Brazil and India, given the impact of inflation and human welfare,
considering the global state
connect with “Snacking Made Right” initiatives and its strategies meant to accommodate local
of affairs
nuances using local brands to perform greatly in particular markets.
Strategic acquisitions in the Mondelez's acquisition of Clif Bar & Company further advances its ambition to lead the future
future and brand leverage of snacking. Moreover, brand leverage strategies such as its #ThingsAreGettingStranger and
will accelerate Mondelez's #OreoTurnsRed campaigns to promote the Oreo Red Velvet Cookie will accelerate Mondelez's
growth growth in the near future.
© Euromonitor International
 State of play

© Euromonitor International
 STATE OF PLAY 88

Top snacks companies at a glance

© Euromonitor International
 STATE OF PLAY 99

Mondelez’s global footprint: developed markets dominate

© Euromonitor International
 STATE OF PLAY 10
10

Company overview: Mondelez International Inc

Mondelez is one of the largest snack companies in the world, with
approximately 7% market value share. The company ranks second in
the global snacks market behind PepsiCo, which held 8% market
value share in 2022. Mondelez offers consumers a range of well-
established brands with global presence. Some of these key brands
are Cadbury, Milka, Oreo, Halls and Trident.
Chocolate confectionery is the most significant category for
Mondelez, accounting for 35% of total snacks retail value sales.
Sweet biscuits is the second most significant category accounting
for 32% of total snack retail value sales. Both categories witnessed
growth during the height of the COVID-19 pandemic due to home
seclusion and consumer demand for indulgence and comfort.
With the successful rollout of COVID-19 vaccines, consumers have
resumed their pre-pandemic habits and are spending time out of
the home again. And as consumers resume their in-person
activities, such as going to the office, to supermarkets or engaging
in social activities with friends and family, on-the-go consumption is
seeing recovery benefiting small, impulse formats such as impulse
ice cream and snack bars.

© Euromonitor International
 STATE OF PLAY 11
11

Company overview: Mondelez International Inc

Mondelez is one of the largest snack companies in the world, with
approximately 7% market value share. The company ranks second in
the global snacks market behind PepsiCo, which held 8% market
value share in 2022. Mondelez offers consumers a range of well-
established brands with global presence. Some of these key brands
are Cadbury, Milka, Oreo, Halls and Trident.
Chocolate confectionery is the most significant category for
Mondelez, accounting for 35% of total snacks retail value sales.
Sweet biscuits is the second most significant category accounting
for 32% of total snack retail value sales. Both categories witnessed
growth during the height of the COVID-19 pandemic due to home
seclusion and consumer demand for indulgence and comfort.
With the successful rollout of COVID-19 vaccines, consumers have
resumed their pre-pandemic habits and are spending time out of
the home again. And as consumers resume their in-person
activities, such as going to the office, to supermarkets or engaging
in social activities with friends and family, on-the-go consumption is
seeing recovery benefiting small, impulse formats such as impulse
ice cream and snack bars.

© Euromonitor International
 STATE OF PLAY 12
12

Mondelez holds strong position across key categories supporting sales growth in 2022
90% of Mondelez growth over 2019-2022 can be attributed to the
company’s ability to sustain sales momentum, which is
underpinned by the great performance of key categories; Mondelez
ranks first and second in global sales of sweet biscuits and
chocolate confectionery, respectively. In chocolate confectionery,
Mondelez manages global brands Toblerone, Milka and Cadbury. In
sweet biscuits, the Oreo brand is key.
The company is continually strengthening the global presence of its
brands. It is pursuing growth through global, digital commerce
capabilities with partners across e-commerce distribution channels
and various retailers. Mondelez directs 60% of marketing
investments towards digital marketing and 35% towards
personalised marketing. For example, a Cadbury Fuse ad, “Don’t go
far for hunger” campaign implemented in India leveraged
automation to boost impressions among targeted audiences.
Mondelez’s success in the snacks industry is partly due to recent
acquisitions. The company acquired Clif Bar & Company, the US
leader in fast-growing protein/energy bars. This deal expands
Mondelez’s global snack bars business to more than USD1 billion,
and incorporates brands such as Clif, Clif Kid and Luna.

© Euromonitor International
 STATE OF PLAY 13
13

Mondelez continues transforming the way it conducts business to deliver on new snacking
demands
Further developments made to
improve company practices, including
In 2018, Mondelez more women and Black leadership,
unveils its long-term and increasing cocoa volumes sourced
focus on “Snacking through Cocoa Life - sustainable
Made Right”. supply programme.

Rationalisation of innovation agenda Goals to achieve:

by eliminating 25% of its SKUs which •Revenue targets for portion-
account for 2% of the total revenue controlled products
prioritising high-value and disruptive •100% sustainably-sourced
innovation on wellbeing. chocolate
•10% CO2 reduction
•100% recyclable packaging
•Improvement to child labour
Source: [Link]
© Euromonitor International
 STATE OF PLAY 14
14

Right snack: Mondelez updated product portfolio to satisfy dynamic consumer demands
The company shook the global snacks industry in late 2022 with the announcement of plans to divest its gum business in the US, Canada
and most of Europe to Perfetti Van Melle Group for USD1.35 billion. Even though the company will continue to produce gum in other
regions, such as Latin America and Asia, the action brings Mondelez closer to the goal of shifting more resources to categories where
significant growth opportunities were identified (ie biscuits and chocolate confectionery). Mondelez earns more than 80% of its revenues
from biscuit and chocolate businesses, and it has established the goal to increase that percentage up to 90% by 2030.
Moreover, consistent with offering mindful snacks to the consumer, Mondelez has unveiled plans for eight series designed to comply with
the high fat, salt and sugar (HFSS) regulations in the UK. The company has launched a new belVita Fruit Crunch range - launching apple and
pear flavours, with whole grains, 30% less sugar and 70% less saturated fat, compared to the average sweet biscuit product for adults.

Source: [Link] Source: [Link]

© Euromonitor International
 STATE OF PLAY 15
15

Right moment: Mondelez progresses on target for portion-controlled products

Alongside recipe reformulations and new product launches
that promote wellbeing, Mondelez intends to educate
consumers on mindful snacking through portion control.
The company is on a path to increase the share of portion-
controlled snacks sales to 20% by 2025 in order to give
consumers better control of their calorie intake without
giving up indulgent treats entirely. As of 2021, Mondelez has
been able to reach 17% share of portion-controlled snack
sales.
Mondelez has also planned to include a mindfully portioned
icon on all packs by 2025. 18% of packs feature the icon as of
2022. Source: Mondelez

Mondelez unveiled these long-term goals based on the

growing health and wellness trend that was boosted by the
clean label movement and pandemic. However, consumers
are relating these strategies with a phenomenon called
“shrinkflation”. It is imperative that value, in both offerings
and communication, remains intact as Mondelez acts on the
Right Moment pillar of the “Snacking Made Right” long-term
strategy.
Source: Mondelez
© Euromonitor International
 STATE OF PLAY 16
16

Right way: Mondelez operations pave the way towards more sustainable snacking

Source: [Link]

Source: [Link]
Source: Euromonitor International - Sustainability Claims Report: Sustainable Packaging in Snacks
Mondelez is adjusting operations in order to advance towards more sustainable raw material sourcing and packaging. For example, the
company set a goal for 100% of cocoa volume for chocolate brands to be sourced through the Cocoa Life programme by 2025. As of 2021,
Mondelez has been able to source 75% of the cocoa volume needed through this sustainability programme. Moreover, according to
Euromonitor International's Sustainability Tracker and Sustainability Claims Report, Mondelez was found as the leading player featuring the
claim "Can be recycled" in the snacks industry, related to the "Sustainable Packaging" attribute group - with a market share of 18.5% in
sales of products with that claim.
Additionally, Mondelez has announced a sustainable wheat sourcing programme for its European operations. This programme is called
Harmony Ambition 2030. The programme aims to mitigate climate change, reverse biodiversity losses and invest in research that
demonstrates the superior qualities of more sustainably-sourced wheat. As of 2021, the company has been able to grow 91% of the wheat
needed for its European biscuit business under the Harmony Ambition 2030 programme.
© Euromonitor International
 Exposure to future growth

© Euromonitor International
 EXPOSURE TO FUTURE GROWTH 18
18

The US and Argentina are expected to contribute the largest share of growth for Mondelez
Mondelez International has set an ambitious growth
path for the period 2022-2025. If positive performance is
sustained among current categories played in, the US
and Argentina will be key markets driving the company’s
absolute value growth.
For the US, sweet biscuits is set to remain Mondelez’s
key category for future growth, based on the strong past
performance of the brand Oreo and anticipated future
brand investments. For example, in 2022, Mondelez
launched a new Oreo with Neapolitan Crème flavour and
partnered with Microsoft to promote snack breaks at
work.
In Argentina, Mondelez has invested in promotions
(including discounts) across leading retailers resulting in
increased penetration of Oreos in low-income
households. Additionally, personalised marketing
initiatives have been implemented to reach the
Argentinian market with the Oreo campaign
“Encontremos eso que nos une”, which invites
consumers to look for excuses to hang out more often
and share some Oreos
© Euromonitor International
 EXPOSURE TO FUTURE GROWTH 19
19

Mondelez, and other top snack manufacturers, expected to retain market position
The top 10 snack companies are expected to hold
onto their market positions throughout the period
2022-2025. Mondelez ranks second and is expected
to maintain rank by leveraging key brands and
increasing focus on core categories - chocolate
confectionery and sweet biscuits. The divestment of
Mondelez’s gum business in the US, Canada and
Europe (except France) to Perfetti Van Melle Group
for USD1.35 billion is set to strengthen investments
while bringing Mondelez closer to its goal of shifting
more resources to its chocolate, biscuit and baked
snack brands.
PepsiCo is anticipated to continue leading the global
snacks industry. In 2022, 94% of its snack portfolio
was comprised of savoury snacks. PepsiCo is fully
engaged in the “snackification” trend by adapting
popular brands, Lay’s and Cheetos, to current
consumer demands and evolving occasions. Also,
the renewal of PepsiCo’s NFL sponsorship in 2022,
will perpetuate the company’s marketing abilities.

© Euromonitor International
 Competitive positioning

© Euromonitor International
 COMPETITIVE POSITIONING 21
21

Mondelez positions itself for focused growth despite small share decline
In 2022, Mondelez experienced a small
share decline resulting in a 7% value share
of the global snacks industry. A further
decline is expected in 2023 as a result of
the company’s gum business divestment.
Mondelez had a 25% market value share in
the gum category before the pandemic,
and it has gone downhill since then,
ending in Mondelez selling its gum
business in developed markets.
Competitor PepsiCo has realised strong
growth over 2019-2022. With consumers
spending more time at home during the
pandemic, PepsiCo increased its online
presence with the launch of direct-to-
consumer sites in developed markets such
as the US and the UK. Mars, on the
other hand, experienced strong declines as
sugar confectionery and gum products
were not highly favoured during the
pandemic and home seclusions.
© Euromonitor International
 COMPETITIVE POSITIONING 22
22

Competitors are strategically leveraging brands to compete with Mondelez

Strong Mars, Ferrero and Nestlé brands are key
competitors to Mondelez’s core offerings.
Meanwhile PepsiCo sets a path to become a Mars Inc

more direct competitor to Mondelez.

Mars’s M&M’s brand has maintained and Ferrero &
incrementally increased retail value sales share related parties Nestlé SA
to rank as the number five snack brand globally
over the years; M&M’s is closing in on Oreo’s
ranking as the number four snack brand. Mars
partnered with Kellogg offering M&M’s Keebler
cookies which more directly compete with
Mondelez’s sweet biscuits sales. Meanwhile,
Ferrero and Nestlé’s promotional strategies and
historic market presence have strengthened
their brand lead within chocolate confectionery.
Brands Lay’s and Doritos by PepsiCo continue to
dominate overall snack sales. New extensions of
PepsiCo brands into savoury biscuits were
announced for 2023 which is expected to
further challenge Mondelez’s lead in biscuits.

© Euromonitor International
 COMPETITIVE POSITIONING 23
23

Mondelez's leadership across key categories and markets

© Euromonitor International
 COMPETITIVE POSITIONING 24
24

Mondelez’s leads in sweet biscuits and chocolate confectionery

In terms of revenue generation, sweet biscuits is the most significant category for
Mondelez International. The category remains top ranked in several countries, including
highly competitive markets such as the US. Mondelez continuously develops the presence
of its sweet biscuit brands and strength of delivery through channels such as e-commerce.
In France, Mondelez-owned brands, LU Prince and Granola Extra cookies, lead the sweet
biscuits category, together accounting for almost 14% market value share. In the US and
Canada, the leading brand is Oreo, which accounts for 16% and 11% of the markets,
respectively. Moreover, Mondelez has been developing its performance in the UK by
strengthening the brand belVita. In China, Oreo has strong market
penetration, consolidating the brand’s leadership worldwide. Source: [Link]
Chocolate confectionery is another significant revenue-generating category for Mondelez.
The company has been investing in experiential marketing to more deeply engage with
consumers. In 2022, Mondelez travel retail company, World Travel Retail (WTR), partnered
with Largardère Travel Retail to launch the Cadbury Football Club activation at Luton
Airport in the UK. The dynamic soccer-themed “Luton Fan Zone” pop-up offers consumers
an exciting experience featuring digital engagement. Some of the elements included in this
experience are laser-printed chocolate bars, striking stadium-themed shelving and *

augmented reality sleeves which can be accessed via a QR code.

Source: [Link]
© Euromonitor International
 COMPETITIVE POSITIONING 25
25

Mondelez's key brands across top countries

© Euromonitor International
 COMPETITIVE POSITIONING 26
26

Mondelez places emphasis on a more digital future

The overall global snacks industry is highly fragmented. And
although Mondelez ranks second, most of the company’s brands
account for less than 1.5% value share across key markets given the
wide range of snack formats - from savoury snacks to sweet snacks -
and the highly competitive nature of some markets, notably the
US.
Mondelez has been heavily investing in digital commerce
distribution channels. According to Mondelez's CMO, Martin
Renaud, the company will invest approximately USD1 billion to
greatly expand its digital media and commerce footprint in order to Source: [Link]

facilitate higher degrees of personalisation at every consumer

touchpoint over the next 10 years. The company's goal is to
generate 20% of revenues through digital commerce platforms by
2030.
Additionally, Mondelez has increased advertising efforts through
digital commerce platforms to attract consumers at the moment of
purchasing online. Moreover, the company has increased its social *

media presence given the relevance that these platforms have in

some countries. For example, in China, Mondelez experienced a
significant rise in sales due to the partnerships it developed with
TikTok and Alibaba. Source: [Link]
© Euromonitor International
 Sweet biscuits

© Euromonitor International
 SWEET BISCUITS 28
28

Mondelez is driving growth in sweet biscuits and snack bars around the world
Mondelez’s global sweet biscuits sales
account for some 32% of the company’s total
snack value sales. Snack bars represented less
than 1% of Mondelez’s total snack sales
historically; however, snack bars have
increased to nearly 4% following the
acquisition of Clif Bar & Company in 2022.
Sweet biscuits benefited from comfort-
seeking behaviours throughout the
pandemic, whereas snack bar consumption
decreased due to less demand for on-the-go
goods. As out-of-home occasions regain
momentum, snack bars are experiencing
growth.
North America is the largest region in value
sales of sweet biscuits for Mondelez - driven
by Oreo which holds 16% of the market and
Chips Ahoy! with an 8% share. Among snack
bars, Mondelez has consolidated the category
as a global leader due to the Clif acquisition,
with an 11% share of the market.
© Euromonitor International
 SWEET BISCUITS 29
29

Mondelez consolidates itself as leader in the global sweet biscuits and snack bars industries
Mondelez is the clear leader of sweet
biscuits globally - commanding more than
15% market value share. Moreover, the
company ranks second in the snack bars
category globally with its brand Clif and a
7% market share.
In the US and China, Oreo holds 16% and
19% of the market, respectively. In France,
Mondelez has established itself as leader
with the brand LU/LU Prince holding
nearly 9% market share. With a portfolio
comprised of more than 20 brands,
Mondelez has managed to acquire almost
16% of sweet biscuits globally.
In the UK, Mondelez competes with the
protein bar brand Grenade, which
represents almost 10% of the market.
In Canada, Mondelez leads sweet biscuits
with its brand Oreo, which has a strong
market share of 11%.

© Euromonitor International
 SWEET BISCUITS 30
30

US and Argentina set to be Mondelez’s main growth markets in sweet biscuits

If Mondelez continues to operate at current
performance in sweet biscuits and snack
bars, the company’s growth over 2022-2025
would see large contributions from the US
and Argentina.
Mondelez has been able to counter
increasing inflation in Argentina by offering
discounts and promotions, both strategies
that have enabled the company to reach
low-income households with its brand Oreo.
Moreover, the brands "Pepitos" and
"Variedad" have taken a 3% share each in a
highly fragmented market.
Mondelez is shifting resources to become
more operationally efficient in the US. Over
the past few years, Mondelez closed sweet
biscuits-producing factories in Fair Lawn, NJ,
and Atlanta, GA, because they were no
longer considered strategic assets from
a performance perspective, as they
contained outdated production capabilities.
© Euromonitor International
 SWEET BISCUITS 31
31

Size and format adjustments are levers used in response to inflationary impacts

Source: Euromonitor International - Via - Jan to Dec 2022

Consumers claim that eating a cookie is an enjoyable way to counter sadness or stress. While they get frustrated with rising prices for a
wide portfolio of goods and services, they continue to perceive sweet biscuits as an affordable indulgence - this presents great opportunity
for Mondelez.
During the first quarter of 2022, Mondelez’s net revenue rose about 7% to USD7.8 billion. The company has been able to counter
inflationary effects by acting on strategic levers with the consumer in mind - even by incrementally increasing price per unit while keeping
consumer demand afloat. According to Euromonitor's price tracking tool Via, Mondelez's brand Chips Ahoy! experienced strong price
increases in both the US and the UK. The brand's median price growth rates in the countries mentioned were 5.83% and 15.75%,
respectively.
Moreover, Mondelez has launched different formats and adjusted its products' weights to protect profit margins in a strong inflationary
landscape. However, Mondelez’s revenues for 2022 would have been higher if it were not for the increase in ingredient costs and the war
in Ukraine. Consumers are relating the downsizing strategy undertaken by Oreo with "shrinkflation".
© Euromonitor International
 SWEET BISCUITS 32
32

Mondelez’s business in Ukraine suffers significant damage

"Sadly, our site in Trostyanets has suffered significant damage, as there has
been significant military action in the entire area since the war began. To the
best of our knowledge, no employees were injured at the facility, which we
closed as soon as the war began," Mondelez said in a statement provided to
Just Food.
Source: [Link]

Source: [Link]
Russia’s invasion of Ukraine and its impact has affected many companies around the world, directly or indirectly. Most producers in the
snacks industry have experienced increases of 40-60% in production costs since the conflict started. With operations in the area, Mondelez
is experiencing the direct impacts of this war.
Mondelez had two factories in Ukraine. One factory is located in Vyshorod and the other in Trostyanets, the latter a biscuit-producing
factory located in the northeastern region of Ukraine. Both factories had to close due to significant infrastructure damage caused by
military actions. In the case of Vyshorod, Mondelez stated that the company will continue to make repairs at the factory while restarting
production. However, the Trostyanets factory is expected to remain closed.
In April 2022, the company estimated a USD0.03 per share (MDLZ stock) dent in its annual profits and a USD200 million hit to revenues due
to the closure of the two factories in Ukraine and the impact of the war on global commodities.

© Euromonitor International
 SWEET BISCUITS 33
33

Introducing Oreo Red Velvet in Stranger Things and “Compliment the Oreo…”
Mondelez is pushing more towards personalised and experiential
marketing in order to drive consumer demand. Throughout 2022, as the
popular Netflix show “Stranger Things” launched its fourth season,
Mondelez and Netflix partnered in a collaboration for its Oreo Red Velvet
cookie launch.
In order to promote the collaboration, the Oreo brand released a video of
Stranger Things using the hashtags #ThingsAreGettingStranger
and #OreoTurnsRed where a person appears in Mondelez's warehouse
with a huge amount of Oreo stock. The video then begins to show the
original Oreos being sucked into a vortex and consequently changing Source: [Link]

their colour from the original black to red velvet.

In response to the video, Netflix released a disclaimer acknowledging the
“strange happening”. In an amusing way, Netflix stated how the red velvet
Oreos are just as delicious as the original, addressing any possible doubts
that consumers might develop about the taste.
Moreover, Mondelez developed another campaign called “Compliment
The Oreo And Make It Blush” , which is based on machines that show
how the original Oreo “blush” and turn red when a consumer
compliments the cookie. After it turns red, the machine offers a sample
of the new Oreo Red Velvet cookie to the consumer.
Source: [Link]
© Euromonitor International
 Confectionery

© Euromonitor International
 CONFECTIONERY 35
35

Western Europe: Key region for Mondelez's confectionery business

Confectionery is the most important
category for Mondelez, representing on
average 54% of its total snacks revenues
worldwide over 2017-2022.
Confectionery sales are largest in Western
Europe. In 2022, sales in the region
represented 65% of its total snacks
revenues. Western Europe has accelerated
its historic CAGR due to the effects the
COVID-19 vaccine had on the population,
ending home seclusion and boosting on-
the-go consumption goods, which are an
important share of the confectionery
category. However, with the war in Ukraine
and the company divesting its gum
business, sales are likely to decelerate.
The Middle East and Africa, Latin America
and Eastern Europe remain attractive
regions as historic growth has been the
highest across the globe.

© Euromonitor International
 CONFECTIONERY 36
36

Mondelez divests gum business with a goal to strengthen chocolate confectionery sales
Chocolate confectionery, gum and sugar
confectionery represent 67%, 18% and 15% of
Mondelez’s total confectionery sales in 2022,
respectively. Confectionery sales were led by the
UK, the US and Brazil markets.
The UK is Mondelez’s largest confectionery market
and more than 70% of sales are derived from
chocolate confectionery. The company is currently
developing deeper experiential marketing
strategies to strengthen brands in the region.
In the US, Mondelez’s second largest
confectionery market, sugar confectionery leads
sales. Successful positioning of brands, such as
Bubbalicious and Sour Patch Kids, among both
children and adults has benefited sales.
Mondelez has unveiled plans to divest its gum and
candy business to focus resources on the
chocolate, biscuits and baked snacks categories.
The divestment to Perfetti Van Melle Group will
impact the US (gum only), Canada and European
markets (except France).
© Euromonitor International
 CONFECTIONERY 37
37

Emerging markets most likely to drive Mondelez’s future growth in confectionery

Considering a scenario where Mondelez sustains
its current growth trajectory, the company’s
future growth is mostly likely to be driven by
chocolate confectionery in emerging markets
such as Brazil and India.
India has been a market of focus for Mondelez’s
brand Cadbury, showing strong growth rates
during the last few years. Mondelez is focused
on boosting Cadbury’s penetration in the Indian
market, where 80% of the company's sales occur
in the traditional channel. Moreover, the
company has launched CoLab, its global start-up
accelerator programme, in India. The goal of this
programme is to nurture the growing
entrepreneurial pool in the country while
driving innovation.
As quarantines and other COVID-19 restrictions
are lifted, gum, which is highly consumed during
social occasions (eg for fresh breath), is set to
experience substantial growth, gradually
returning to pre-pandemic levels.
© Euromonitor International
 CONFECTIONERY 38
38

Brand strength remains key in generating confectionery growth in Brazil and India

Source: [Link] Source: [Link]

India Brazil
Having identified a premium niche with a broad portfolio of Mondelez, in its Q4 2022 earnings call, cited Brazil as a key growth
successful launches, Mondelez is acting to further consolidate market for gum and candy sales, supporting the decision to retain
India’s chocolate confectionery market with the new launch of business in the region; however, following closure of two
Cadbury Dairy Milk Silk Bubbly Bubble Gum. Similar to Cadbury confectionery plants in 2018 coupled with growing competition
Dairy Milk Silk Oreo (Original and Red Velvet) and Cadbury Dairy from Nestlé-owned brands, Mondelez’s lead of confectionery sales
Milk Mousse, Mondelez India continues to bring “first to the world overall has been challenged over the years. Brands such as Trident
innovations” based on consumer insights and the brand’s strong and Halls, in gum and medicated confectionery, respectively, have
legacy. Mondelez currently commands over 50% market share in grown share, but Lacta remains a key brand for Mondelez’s overall
chocolate confectionery in India. lead of confectionery in Brazil - gaining 3% brand share since 2018.
© Euromonitor International
 CONFECTIONERY 39
39

Mondelez raises the bar on digital marketing through the metaverse

Mondelez-owned brand Cadbury has been delivering on Indian
consumers' desires and dynamic demands for over a decade but
has been elevating marketing strategies as well.
On Valentine’s Day in 2022, Cadbury surprised young Indian
couples with the first-ever Valentine’s dinner date in the
metaverse, powered by YUG, a virtual metaverse where users can
enjoy immersive 3D experiences.
The brand introduced real-time personalisation of augmented
reality experiences, giving consumers the opportunity to unlock
secret messages sent by their loved one and view it on any Source: [Link]
Cadbury ad.
According to Euromonitor's Voice of the Consumer: Digital
Survey, 40.3% of global consumers think that AR/VR will have an
impact on commerce by enhancing the path to purchase - which
Mondelez has already acted on with Cadbury’s feature in the
metaverse.

Source: [Link]
© Euromonitor International
 Savoury snacks

© Euromonitor International
 SAVOURY SNACKS 41
41

Reactivation of social activities boosts global savoury snacks industry

Mondelez’s savoury snacks sales value
represents 13% of its total snacks sales,
driven mostly by its number one brand,
Ritz.
The strong development of the savoury
snacks category continued during 2022
thanks to COVID-19 vaccination rollouts,
which made it possible for consumers to
resume social activities. Therefore, as on-
the-go consumption regains momentum, it
offers expanded opportunities for
Mondelez's savoury snacks brands to grow
based on increasing social occasions and
portable packs.
North America is Mondelez’s most relevant
market, with Ritz owning some 2% of the
market. Moreover, the Middle East and
Africa showed the highest CAGR,
presenting expanding opportunities for
Mondelez.

© Euromonitor International
 SAVOURY SNACKS 42
42

Savoury biscuits makes up the overwhelming majority of Mondelez’s savoury snacks sales
Savoury biscuits accounted for 92% of
Mondelez’s total savoury snacks value
sales in 2022 - followed by salty snacks
with 7% and other savoury snacks with 1%
sales share. The US is Mondelez’s largest
market for savoury snacks.
In France, Mondelez is the clear leader
holding the top three selling brands in the
French market: Crackers Belin, Heudebert
and LU TUC; these brands hold 15%, 9%
and 6% of the market, respectively.
Mondelez also leads the savoury biscuits
market in Canada with the brands Ritz and
Premium commanding 32% of the
category in total.
In the Brazilian market, Mondelez has
been able to consolidate its leadership
with the brand Club Social, holding 15% of
the market.

© Euromonitor International
 SAVOURY SNACKS 43
43

Locally-tailored strategies and timely execution in biscuits are needed to capture growth
If Mondelez maintains momentum in savoury snacks sales
from 2022, future category gains will be driven mostly by
the US and Argentina. Key pillars for growth will be seen in
the forms of timely innovations and market-relevant
execution strategies.
In the US, divestment of Mondelez’s gum brands allows
greater savoury snacks investments. Mondelez leveraged
format and flavour innovations to expand savoury
category sales in 2022. For example, a limited- time sweet
and savoury Ritz paired with Oreo cracker was launched as
well as a zesty jalapeno Triscuit variety. Moreover, Triscuit
Crackers introduced a brand campaign "Unapologetically
Wholesome" featuring celebrity chef Gordon Ramsay to
celebrate the “wholesome but crunchy things in life” that
are full of authentic, unfiltered personality and flavour,
just like the Triscuit Crackers.
In Argentina, the brands Cerealitas and Express are
expected to benefit from the company’s focal shifts which
emphasise local strategy executions and the biscuits
category, especially given the brands have not been
gaining savoury category share.
© Euromonitor International
 SAVOURY SNACKS 44
44

Refocused mixed management strategies are expected to boost Mondelez’s savoury business
Key Areas for Mondelez Savoury Growth

Brand Management Leading savoury brands Ritz,

Chocolate and biscuits are attractive and historically
Sustaining savoury TUC and Triscuit, among
durable categories in both developed and emerging
markets, and they still have significant headroom in
1 snacks brand power others, are expected to be
leveraged in new ways to
terms of penetration and per capita consumption. promote consumer trial and
broader portfolio engagement.
- Dirk Van de Put, Chief Executive Officer
Channel Management Mondelez’s refocus on
2 Deepening geographical empowering global visions to
reach and coverage take forms in ways that
resonate locally is anticipated
to improve market presence.
As we continue reshaping our portfolio, we will drive
value through targeted acquisitions that expand our Category Management A wider range of savoury price
presence in chocolate and biscuits by filling
geographical gaps and extending into under- 3 Value offer expansion -
more premium and
pack architectures is needed to
cater to the polarising
represented segments and price tiers. affordable savoury purchases of consumers (both
treats trading up and down).
- Dirk Van de Put, Chief Executive Officer

© Euromonitor International
 Key findings

© Euromonitor International
 KEY FINDINGS 46
46

Key summary

Mondelez redefines its While Mondelez shifts focus to grow share of its core snacking categories, chocolates and
snacking core with a focus biscuits, there remains ample opportunities around the how (innovative formats) and where
on sweet snacks (geographical expansion) plays can be made to build on its dominance of sweet snacks.

Diving deeper into core

Mondelez states that it will work to play across the full spectrum of biscuits and baked snacks
biscuit and chocolate
by extending its presence into a much broader range, including cakes, pastries and snack bars.
categories

Digital, experiential and more consumer need-orientated marketing. Mondelez is set to invest
Marketing as a key pillar for a significant number of resources in these three marketing strategies to greatly expand its
Mondelez's growth digital media and commerce footprint in order to facilitate higher degrees of personalisation at
every consumer touchpoint.
Broader but deeper focus on state of affairs in key markets such as the UK and the US, and
“Snacking Made Right”
developing markets such as Brazil and India, given the impact of inflation and human welfare,
considering the global state
connect with “Snacking Made Right” initiatives and its strategies meant to accommodate local
of affairs
nuances using local brands to perform greatly in particular markets.
Strategic acquisitions in the Mondelez's acquisition of Clif Bar & Company further advances its ambition to lead the future
future and brand leverage of snacking. Moreover, brand leverage strategies such as its #ThingsAreGettingStranger and
will accelerate Mondelez's #OreoTurnsRed campaigns to promote the Oreo Red Velvet Cookie will accelerate Mondelez's
growth growth in the near future.
© Euromonitor International
 Appendix

© Euromonitor International
 APPENDIX 48
48

Projected company sales: FAQs (1/2)

Why project company sales?
Company and brand sales projections are a useful way to compare relative future
performance. These are not forecasts in the traditional sense, it is not realistic to
forecast company activity. Instead our projections are a measure of a company's
exposure to future growth.

How do you project company sales?

Euromonitor International's company and brand sales projections are made with
two underlying assumptions. Firstly, that current year brand shares will not
change. Secondly, that there will be no mergers, acquisitions or divestments in the
future. Forecasting shares is notoriously difficult and therefore we assume that a
brand's share of any given category will remain constant in the future. Trying to
accurately predict future M&A activity is equally fraught with difficulty.
Every category, however, will grow at a different rate and the cumulative effect
across different brand portfolios (ie every relevant country-category combination)
means certain companies will outperform others.
This is “market momentum” and is a measure of a company playing in higher
growth countries and categories relative to its rivals.

© Euromonitor International
 APPENDIX 49
49

Projected company sales: FAQs (2/2)

What is the basis for this methodology?
Based on Euromonitor International's growth decomposition analysis, it is evident
that general market momentum is the single most important contributor to
company performance, outperforming the impact of both market share gains and
M&A activity.
This learning is based on analysing all brand and company sales data in every
category and company in Passport. (Clearly the same does not apply in any
circumstance where a given company has made a major acquisition or divestment).
For the largest companies, market momentum shows even greater significance and
so exposure to growth offers a sound basis for projecting relative future
performance.

Note: Growth Decomposition and Projected Sales are based on the sum of all
activity in researched countries only, and therefore do not take into account the
effect of non-researched (modelled) markets. For this reason, there will be slight
differences compared with full global data found elsewhere in this report.

© Euromonitor International
MONDELEZ INTERNATIONAL INC IN SNACKS (WORLD)

For Further Insight please contact

Carl Quash III

Industry Manager Snacks
[Link]@[Link]
• [Link]

José Ramos
Research Analyst - Food and Nutrition
[Link]@[Link]
• [Link]

© Euromonitor International
MONDELEZ INTERNATIONAL INC IN SNACKS (WORLD)

Experience More

This research from Euromonitor International is part of a global strategic intelligence system that offers a complete picture of the commercial
environment. Also available from Euromonitor International:

Industry
Industry reports are updated annually and provide internationally comparable statistics on a wide range of consumer goods, services
and industrial markets.
Country
Internationally cross-comparable data covers more than 210 national markets, with continuous updates providing in-depth strategic
analysis of the competitive landscape and current market trends
Company
Strategic analysis of the world’s largest companies and their activities derived from a global country by country research program.
Economic
The world's most comprehensive market research and in-depth data and analysis on national economic performance and market sizes.
Consumer
The world's most comprehensive market research and in-depth data and analysis on consumer market behaviour.

© Euromonitor International
MONDELEZ INTERNATIONAL INC IN SNACKS (WORLD)

Euromonitor International network and coverage

16 OFFICES
To find out more about Euromonitor
International's complete range of
business intelligence on industries,
countries and consumers, please visit
[Link] or contact your
local Euromonitor International office:
Bangalore +91 80 4904 0500
Cape Town +27 21 524 3000
Chicago +1 (312) 922 1115
Dubai +971 4 372 4363
Dusseldorf +49 (0)211 890944 0
Hong Kong +852 3796 3604
London +44 (0)207 251 8024
Mexico City +52 55 9990 3120
Santiago +56 2 2 9157200
São Paulo +55 11 2970 2150
Seoul +82 2 6123 0200
Shanghai +86 21 603 21088
Singapore +65 6429 0590
Sydney +61 2 9581 9200
100 COUNTRIES 210 COUNTRIES Tokyo +81 3 3436 2100
in-depth analysis on AND TERRITORIES Vilnius +370 5 243 1577
consumer goods and demographic, macro- and socio-
services industries economic data on consumer and
economies

© Euromonitor International
MONDELEZ INTERNATIONAL INC IN SNACKS (WORLD)

Tailor these insights to your business

Passport Plus connects you directly to our experts. Through tailored presentations,
expert consultations, and workshops, we help you quickly develop expertise,
pressure test ideas, or inspire new thinking to help shape your future strategy.

Watch this video to learn more and then reach out to your Euromonitor contact to explore more
how you can engage with our teams on this topic.

© Euromonitor International