Mondelez announces push into U.S. chocolate market after dropping Hershey bid
Illinois company will put focus on Oreo, Green & Blacks brands.
Mondelez International has announced plans to expand its presence in the U.S. chocolate market by focusing on two signature brands.
The announcement, made Wednesday at Barclays Global Consumer Staples Conference, comes a week after the Illinois-based snack and confectionery giant halted discussions with The Hershey Co. about acquiring the company. Hershey’s Board of Directors rejected Mondelez’ indication of interest in June.
Mondelez will introduce to the United States an Oreo-based candy bar available in 20 countries and expand offerings through its premium line Green & Blacks.
“With our strong brands and global expertise in chocolate, we see enormous potential to grow our U.S. business and expand the category,” says Tim Cofer, Mondelez chief growth officer. “The United States is the world’s largest chocolate market, valued at $14 billion. However, per capita consumption is only half that of many developed European chocolate markets.”
The Oreo bar will be coated in Milka chocolate, another Mondelez brand. Using chocolate sourced through the Cocoa Life program, the Green & Blacks range will feature 70 percent dark chocolate in tablets, as well as in gift and sharing packs.
Cofer also outlined plans that, he hopes, will make Mondelez a global leader in well-being snacks by 2020. The company, which has released “thin” versions of some of its mainstay brands, expects sales of those products to surpass $300 million this year.
Mondelez will also look to build its e-commerce snacks business with the goal of generating $1 billion in revenue by 2020.