Mondelez Launch New Well-Being Brand as Takeover Speculation Mounts

22 Feb 2017 --- Speculation is mounting that Mondelez International could be a takeover target for Kraft Heinz after the company pulled out its bid for Unilever earlier this week, prompting conjecture that merger attention will be turned to the US confectionery giant. Shares in Mondelez have increased as a result, closing at US$44.97 on Tuesday, an increase of around 5.8%.

Amid the speculation Mondelez International announced plans to tap into the desires of health-conscious consumers by launching a new dedicated “well-being” brand. 

Mondelez International is going through some “dramatic changes” according to its CEO,  Irene Rosenfeld, who says consumer trends towards healthy eating is driving the need for a new type of snack.

And so the confectionery giant continues to look at new products that are aligned with modern perceptions of well-being and healthier alternatives. 

Off the back of its previously launched skinnier version of its infamous cookies, Oreo Thins, Mondelez launched Good Thins, a savory snack without artificial ingredients.

Now the company claims 2017 will be “an unprecedented year of well-being innovation”. 

New launches include Véa, a new well-being “power brand” in the savory cracker segment, featuring bold regional flavors, such as Thai coconut or Peruvian sweet potato. Véa crunch bars, world crisps and seed crackers recipes are on-trend in every way: no artificial ingredients, colors or flavors, no trans fats, Non-GMO project verified, says Mondelez. 

"Véa truly underscores the best of our growth capabilities, including breakthrough product and packaging innovation, real-time data analytics, comprehensive distribution across multiple growth channels and fearless digital marketing," Tim Cofer, Chief Growth Officer, said. "We're receiving tremendous response from our major retail partners across North America, and we're confident Véa will be a big success." 

Véa will be available across grocery, club stores, convenience stores and eCommerce channels in the U.S. and Canada as of July 2017, with other global markets following over time. 

Mondelez wants to make its brands accessible to consumers whenever and wherever they shop. It's improving its presence in high-growth channels like eCommerce, discounters, convenience stores and traditional trade. In the online arena, Mondelez International is building an industry-leading eCommerce snacks business by investing in capabilities and infrastructure and enhancing its online product assortment. As a result, eCommerce net revenues grew more than 35 percent in 2016, twice as fast as the rate of the industry.

During a presentation on Tuesday (February 21), the company provided an estimate for 2017 Free Cash Flow of approximately US$2 billion, while reaffirming other elements of its 2017 outlook, including: Organic Net Revenue growth of at least 1%, Adjusted Operating Income margin in the mid-16% range and double-digit adjusted EPS growth on a constant-currency basis.

by Gaynor Selby

To contact the editor of this article gaynor@cnsmedia.com