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According to the CEO of Mondelēz International, according to Cookie and Chocolate Giant, he wants a bigger bite in a rapidly growing $ 97 billion world of cakes and pastry spaces.
SNACKS MAKER is pioneering premium presence between commercialized cupcakes, brownies and muffins using stable symbolic household brands, including Oreo Cookies and Milka Chocolate.
“It is a natural expansion for us. Mondelēz’s CEO DIRK Van de PUT told the Food Dive in an interview. “There were almost $ 97 billion opportunities sitting there and we didn’t pay attention to it. We see a big role in this category. ”
Mondelēz is already a major player in Cakes and Pastries and has recorded sales of categories over $ 2 billion last year. Van de PUT expects more than doubled sales by attracting more deeply into the segment of the company’s biscuits and chocolate brands by 2030, adding new offering and technical functions through the acquisition.
The top five package manufacturers in cakes and fastry account for about 18%of the global market, and the rest should be responsible for thousands of small companies. Mondelez is the third largest player in the universe, which has already had a 3.8%market share, almost twice that of 2021.
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According to the EUROMONITOR data quoted by Mondelēz, the growth of the larger cake and the fast -paced market has grown 8.2%annually compared to 5.2%between 2015 and 2024 over the past four years. It is expected to be a global market of $ 125 billion by 2030.
Van de PUT said consumers have recently increased their appetite for innovation and indulgence, and have been attracted to cakes and fasts due to the portable properties of snacks. It is also proven to be more tempting for children as a snack option compared to cookies and crackers.
For Mondelēz, the key cookies and crackers are similar to cakes and pastry, making the move to this sector almost perfect. The two categories often use the same production technology and ingredients.
Mondelēz also uses the name to provide more premium options in the Bakery section to take advantage of the existing brand assets of the Milka Chocolate Bar or Oreo Cookie. Van de PUT told analysts that it is a combination of symbolic brand portfolios with a recent acquisition. Mondelēz said, “It provides an important competitive advantage“About competitors.
“We are actually gathering the market, integrating the market through acquisition and new launches, bringing more premium, much better products, and upgrading the entire market.”
One of the biggest successes of the company so far is available with Oreo Cakesters Soft Soft Snack Cakes, and last year, it posted sales of $ 125 million. The annual $ 36 billion snack giant has expanded its popular cookie brand to cupcakes. Many interest purchases for Give & GoFrozen brownies, cookies and cupcake manufacturers in North America.
Similarly, Mondelēz moved the Milka Chocolate to Brownie and Cruisang, and used the technology obtained for 7 days of purchase of snack brands in 2021.
Currently, one -third of Mondelēz’s cakes and pastry businesses are accompanied by expanding the legacy brand in the portfolio. The rest is Give & Go and AbitMondelēz, a frozen cake company headquartered in China, bought a number of stakes in September.
“The cake and the pastry category are sometimes underestimated because they are sometimes not just adjacent from our perspective. Van de PUT told the analysts that this sector has a better margin and is growing as fast as other snack categories. “We’ve been impressed that there was not enough clarity about how big cakes and pastry could be for us.”
Brittany Quatrochi, an analyst at Edward Jones, told Cakes and Pastries that Mondelēz has a lot of meaning.
Quatrochi said, “You started seeing a small movement that turns into something more powerful. “I’m not a core driver of business today, but after five to ten years, there is a world that can be a big component of growth they see.”
