Mondelez International has announced plans to sell its chewing gum business in developed markets, as well as its Halls cough drop brand, as the company focuses on chocolates and snacks.
The company will keep its gum brands in emerging markets and continue to operate other brands and products within its candy business.
The Cadbury and Oreo maker said it is reshaping its product line with the aim of generating 90 per cent of revenue from chocolates and biscuits.
Mondelez, which reported sales of $7.76 billion (£6.36bn) last quarter, started a review of its gum business a year ago after demand for the units’ brands took a severe hit during Covid-19 lockdowns.
The company announced significant investments in capabilities and culture, including investing more than $1 billion to become the digital commerce snacks leader. Mondelez aims to deliver 20 per cent of revenues from digital channels by 2030, up from 6 per cent of 2021 revenues.
“Our competitive advantages in the marketplace and focused strategy on global snacking leadership give us great confidence in our ability to sustain strong top- and bottom-line growth for many years to come,” said Dirk Van de Put, chairman and chief executive, Mondelēz International.
“Building on our category leadership, favorable geographic footprint, and the power of our iconic brands, we are well positioned for stronger growth in the decade ahead.”
The company has also updated its long-term growth strategy, elevating Sustainability to become a fourth pillar, alongside Growth, Execution and Culture.
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