Mondelēz growth strategy and future expansion overview
- Mondelēz prioritises investment in brands, innovation and distribution capabilities
- Emerging markets provide substantial runway through distribution and premiumisation
- North America growth is improving through innovation and distribution channels
- Biscoff partnership to exceed $300m revenue this year
- Oreo relaunch aims to boost reach accessibility and sales
Mondelēz International is moving from defence to offence.
The confectionery and snacking giant has spent the past decade grappling with cocoa inflation, supply chain disruptions and geopolitical unrest, but is now ready to stop fighting fires and start driving growth.
The question is how it plans to deliver on those ambitions.
Mondelēz growth strategy
The American multinational’s strategy for growth is fairly straightforward – invest in its most popular brands, including Cadbury, Oreo, Milka and Ritz.
“We’ve been consistent that we are going to invest the upside back into the business,” says Mondelēz CFO, Amit Banati, while speaking at the Barclays Global Consumer Conference. “We see a lot of opportunities, where we can fuel more investment.”
And, rather than chasing short-term growth, it plans to plough profits into brand building, innovation, and expansion.
“We want to invest back into areas that are working,” says Banati. And few areas are working better than emerging markets.
Emerging markets dominate growth
Emerging markets remain Mondelēz’s biggest growth engine, now accounting for around 40% of total sales.
What’s more, core categories like chocolate and biscuits still have significant room for growth, with the potential to attract new shoppers and increase purchasing frequency.
Banati points to significant distribution opportunities in two of Mondelēz’s largest growth markets – India and China.
In India, the company currently reaches around three million retail outlets from a potential of up to 10 million, while in China its biscuit business is present in approximately three million outlets, leaving scope to expand into a further three million.
These gaps alone highlight the significant growth potential Mondelēz still sees across emerging markets.
And, beyond the biggest emerging markets – India, China, Brazil and Mexico – Southeast Asia, the Middle East and Africa, Central America and South-Central Europe are also seen as important regions for future growth.
But growth’s not coming from emerging markets alone. North America is increasingly becoming an important market for the multinational.
North America turnaround
The outlook for North America has improved significantly over the past year, transforming what many investors once viewed as a weak market.
The improvement, says Mondelēz COO, Luca Zaramella, is driven by several factors, including stronger innovation, expansion into faster-growing channels, renewed marketing investment and improved execution.
Brands including Oreo, Ritz and Sour Patch Kids are benefiting from new formats and extensions such as Oreo Minis, Oreo Gluten Free and Oreo Zero Sugar. Mondelēz is also increasing its focus on channels beyond traditional grocery and mass retail, including convenience and out-of-home consumption.
Importantly, management believes these opportunities can continue to fuel growth even if the broader US snacking category remains subdued.
European potential
While Europe is often viewed as a mature market, Zaramella argues substantial growth opportunities remain, with premiumisation a major focus.
The success of products developed through the company’s partnership with Lotus Bakeries’ Biscoff has reinforced the view that brands such as Cadbury and Milka can compete successfully in more premium indulgence spaces.
The snack maker is also targeting growth in biscuits, cakes, pastries and snack bars, with the acquisition of brands like Chipita giving Mondelēz a stronger position in category.
At the same time, it sees room to improve profitability through manufacturing modernisation and supply chain investment.
Alongside these operational improvements, Mondelēz is using innovation and strategic partnerships to strengthen its brands and reach new consumers.
Collaboration and innovation
Collaborations are becoming an increasingly popular way for brands to raise their profile, create consumer buzz and encourage sales.
In fact, Mondelēz’s Biscoff collaboration is expected to generate more than $300m in revenue this year alone.
“The combination of Biscoff with our chocolate brands is really something that consumers love,” says Zaramella. “We’ve learned over time that the combination of big brands that are top of mind for consumers is something that really hits the mark.”
Though Mondelēz doesn’t necessarily view Cadbury and Biscoff as a collaboration.
“We’re treating our chocolate propositions with Biscoff as not a line extension, but as a new brand,” says Zaramella. “We want to support it, we want to have the right promotional elements, we want to have the right visibility, and importantly, we are pacing ourselves because we have a pipeline of innovation that spans across three stages already. We know what we are going to do now, what we are going to do in a couple of years, and what we will do beyond that.”
Innovation also plays a critical role in the global expansion of the business, with new product launches spanning chocolate, biscuits, pastries and better-for-you snacks.
Underpinning much of this innovation strategy is Mondelez’s confidence in the long-term strength of snacking.
Snacking
One of the key themes of Mondelēz’s growth strategy is the importance of snacking.
“Snacking is the place to be,” says Zaramella, highlighting both chocolate and biscuits as categories with significant expansion potential.
The company remains convinced that snacking is one of the most resilient and attractive segments within the wider food industry, supported by changing consumer habits and growing demand for convenient indulgence. Within that landscape, it sees chocolate as a particularly powerful category, owing to the strong emotional connection consumers have with brands such as Toblerone, Cadbury and Milka, while biscuits continue to offer substantial room for share gains through brands like Oreo – a brand that’s getting a bit of a makeover.
Oreo relaunch
One of Mondelēz’s most ambitious initiatives for 2027 is the global relaunch of Oreo, in what it calls a comprehensive refresh.
“Oreo is the star brand,” says Zaramella. “It is a brand that is reaching $5bn in revenue. It is a brand that is growing mid-single digit this year.”
Changes will include revised packaging, expanded price-pack architecture, product quality improvements and broader brand activation efforts.
Because, while it holds around 20% market share in China and approximately 10% in the US, many countries remain below 5%. The relaunch is intended to unlock growth through broader distribution, improved accessibility and new consumer recruitment.
However, Mondelēz’s confidence in these growth initiatives is not driven solely by brand investment and innovation. It believes the external environment is becoming more supportive, with headwinds that have challenged the industry in recent years beginning to ease – most notably cocoa volatility.
Cocoa outlook improves
While volatility remains, Mondelēz’s believes the market is stabilising, with Zaramella arguing that cocoa market fundamentals are in a much healthier position than they were during the recent supply crisis.
He pointed to improved supply dynamics, noting that production growth over the past two years has more than offset earlier deficits and helped rebuild inventories.
Importantly, pricing behaviours across the industry remain “rational”. Fears that private-label manufacturers would slash prices as cocoa costs eased have yet to materialise, while branded competitors have largely maintained disciplined pricing strategies.
With competitors increasingly covered against future cocoa needs and supply conditions stabilising, the chocolate maker believes the category is entering a more predictable period, providing greater visibility for investment and long-term planning.
2027 and beyond
For Mondelēz, the next decade appears less focused on defending margins against cocoa inflation and more focused on scaling the company’s biggest brands, accelerating innovation and capturing untapped opportunities across global snacking markets.
With emerging markets providing a powerful growth engine, North America regaining momentum, and major bets on innovation, premiumisation and Oreo’s global relaunch, the foundations are in place for sustained long-term expansion.
For Mondelēz, the focus has shifted from managing disruption to unlocking the full potential of its global snacking portfolio.
