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Just before and during the early stages of the COVID-19 pandemic, Mondelēz International took a closer look at Chips Ahoy! A brand figuring out how to better reach the next generation of snackers.
The 62-year-old cookie brand wanted to appeal to Gen Z and other consumers looking for sweet, comforting snacks. For that, Chips Ahoy! We began experimenting with new flavors, formats, and innovative partnerships.
Since then, Mondelēz has released larger cookie sizes, a gluten-free option, and a chocolate caramel flavor. The CPG giant launched earlier this year. Chips Hey! grilled foodIt’s a cube-shaped snack that’s chewy and considered a more indulgent treat.
Mondelēz recently had another cookie first, launching the brand’s first fruit-flavored cookie as part of a partnership with the Netflix series “Stranger Things.” By collaborating with Chips Ahoy! It gives you the opportunity to connect with younger shoppers, increase brand awareness, and give your cookies a trendy, modern feel.
The focus paid off. Chips Hey! It has recorded an average annual growth rate of 1.8% over the past three years. The brand is also the leading chocolate chip cookie brand in its category, with sales of approximately $1 billion and a market share of more than 50%, according to Mondelēz.
Chips Ahoy director Chris Park! Mondelēz’s Cake/Pastry Innovations recently sat down with Food Dive to discuss the importance of cookie brands connecting with Gen Z consumers.
This interview has been edited for brevity and clarity.
Food Intro: We recently collaborated with Netflix’s ‘Stranger Things’ to create fruit-flavored cookies ahead of the show’s final season. Please tell us more about it.
Chris Park: This is a great example of how we are connecting with some of the biggest fans of our cookies and a cultural moment that is very relevant to the sector we want to grow. And I think in the future, this is a vehicle that we can continue to leverage and look for as an opportunity to connect closely with consumers. I think limited edition partnerships are a really great way to do that in a really dramatic, big way where you can not only engage fans of the properties you’re obviously partnering with, but come up with really unique cookies to sell in stores with really cool displays.
What we’re driving with this is a ton of awareness and buzz. I’ve generated billions of impressions through our PR campaigns and product launches, and we’ve had many passionate fans commenting to us how awesome they are for our association with this property.
How will your partnership with Stranger Things impact Chips Ahoy!?
park: This is really about us trying to connect with Gen Z consumers. It’s a very large part of our consumer base, but we think it’s an area where we want to continue to grow. For example, with Stranger Things, we know that the show is focused on Gen Z consumers and many of its fans are Gen Z. That’s why it’s a really great partnership to strategically connect with the audience we want to reach.
The second purpose is that we are a very old brand. We’ve been around. Everyone knows us. What partnerships like this offer is to stay relevant in the minds of consumers and show that, despite being a very traditional and old brand, we are keeping up with the times and trends we see in the market. So I think this is a huge help for us as a brand. I think consumers will think of the brand as a brand that’s not just about the cookies they grew up with and the cookies they enjoy today, but also a brand that’s really interested in culture. This seems to have a lot of positive results for us in terms of our consumer base and engagement.
Lastly, people are already consuming Chips Ahoy! We know they are our loyal fans and we want to continue to serve them. But I think this activation is what really stands out. Right? If you were walking around the store when our display was on and you saw the big red monster… it would absolutely stop you. And you think, ‘Oh, Chips Ahoy!’ This is ‘Stranger Things’. I like ‘Stranger Things.’ I might not have bought Chips Ahoy! before. Maybe I’ll give it a try. We want to keep the brand going.
How important are Gen Z consumers to Chips Ahoy!?
park: We’ve established ourselves as one of Gen Z’s top brands, alongside brands like Oreo and Netflix. And I think that’s a testament to the journey we’ve been on as a brand. We know that Gen Z consumers will be a very powerful generation in the coming years. And for brands like us, leveraging Gen Z trends and becoming the best Gen Z brand will prepare us for the future. We have a very strong Gen Z consumer base and we want to take that to the next level.
We know that the behaviors and culture that the Gen Z population brings are highly relevant. So for our brand, this is one of the most important target audiences we have identified so that we can be relevant and grow together.
As part of its partnership with “Stranger Things,” Chips Ahoy! has launched its first fruit-flavored cookie. Why was now the time for such innovation?
park: This is a limited-edition chocolate brownie cookie filled with strawberry flavor. I think you’ll be like, “Wow, this is so different from Chips Ahoy and so new!” If you are a faithful Chips Ahoy! If you are a consumer, it will give you pleasure. You can try different flavors. And you can go back to (traditional cookies) or change your regimen.
But what innovation does offer is a bit of buzz. So we don’t stagnate as a portfolio.
What we want to do is to be a very broad snack that appeals to many consumers and many different occasions. And from a product portfolio perspective, what we’re trying to do is make sure we get the right products and packs to the consumer in the right place.
It’s innovation that keeps our cookies memorable – whether it’s innovation that expands events, limited editions that create buzz, or partnerships that are truly relevant.
