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Adding Biscoff cookies to Mondelēz International's portfolio would give the Oreo maker exposure to a “unique” asset it doesn't already own, the company's CEO said in an interview.
Mondelēz and Lotus Bakeries, which owns Biscoff caramelized biscuits, announced a partnership last week to develop chocolate products that combine the taste and texture of popular cookies with Mondelēz's Cadbury, Milka and other European chocolate brands. The agreement included an option to expand globally.
“Biscoff is unique. There is nothing like Biscoff in our product range. taste. Dirk Van de Put, CEO of Mondelēz, said in an interview: “This will play a unique role in our portfolio. That’s why we became interested in this (partnership).”
The first co-branded products will be launched in early 2025 with Cadbury and Biscoff in the UK and Milka and Biscoff in Europe.
Van de Put said companies are already testing their products. The first item expected to be released is a Biscoff filled chocolate bar. It will replicate Mondelēz's popular Milka bar expansion, which is filled with Oreo.
“We’re thinking that as a first step, we can definitely start doing the same thing we did with Oreo,” Van de Put said. “It will eventually become one of the top three best-selling items in our chocolate range globally.”
Mondelēz and Lotus may consider other products, such as chocolate-covered Biscoff, but cautioned that such innovations are “not yet in the pipeline”.
“Over time, we will come up with innovations that allow us to use the Biscoff brand in more creative ways than simply filling it with chocolate,” Van de Put predicted.
Jan Boone, CEO of Lotus Bakeries, first connected with Van de Put seven years ago when he was appointed CEO of Mondelēz. Boone called to congratulate him. Both executives are from Belgium.
A few years later they started talking about a partnership. Executives said Biscoff and Oreo are complementary and have different flavor profiles. Biscoff is often consumed with coffee or tea, and Oreo is often consumed with milk.
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Boone said he was attracted to Mondelēz because of its global reach, portfolio of brands that complement Biscoff, and trust in the snack maker. Biscoff's roots began in 1932 in a local bakery in Belgium. The recipe remains a closely guarded secret.
Boone said he was also fascinated by how quickly Mondelēz gets its products to market.
“It’s very unique to see this entrepreneurial spirit within a large company,” Boone said.
Biscoff has grown into a global top 5 biscuit brand. Biscoff's sales increased 20% to more than $500 million in 2023 as Lotus continues to expand its brand internationally.
Lotus wants its cookies to become the world's third largest biscuit brand by sales, behind Mondelēz's Chips Ahoy! And Oreo. Approximately 6 billion Biscoff cookies are produced each year.
If Lotus wants to achieve its goal of making Biscoff a truly global product, it will need to “conquer” India and tap into the country's population of nearly 1.5 billion people, Boone said. “It’s always been difficult for us,” he added.
Mondelēz, which has global sales of $36 billion, has been active in India for 70 years. India generates about $2 billion in revenue for the company, most of which comes from Cadbury, of which Mondelēz has a 65% share of the Indian chocolate market.
A decade ago, Mondelēz entered the Indian biscuit market with its children-focused brands and Oreo. Oreo quickly became the third largest sandwich cookie market. Van de Put said Mondelēz needed to add more brands to expand its biscuit presence in the South Asian country beyond chocolate.
“You can’t capture 30% or 40% of the biscuit market with just one brand of cookies. “That is impossible,” he said. There is a need for multiple brands and we were looking for a brand like Biscoff to add to our Indian portfolio.
Both executives expect the partnership between Mondelēz and Lotus to last for many years.
“that Long-term contract. It's a complicated agreement. That’s why we don’t do that for years,” Boone said. “It’s really a long-term, long-term thing. And I want you to sit here. “In 20 years we will look just as happy as we do now.”
