Power brands drive Mondelez

Warc, 15 February 2013

NEW YORK: Mondelez, the snack foods giant, said its "power brands" grew twice as fast, at 8%, as the company overall during 2012.

Speaking to analysts, CEO Irene Rosenfeld identified the firm's biscuit power brands, including Oreo, belVita and Barney, as particularly good performers, increasing 12%.

BelVita, a breakfast biscuit, led the way, growing more than 50% and generating over $400m in revenue, as it was launched into new markets such as North America and Australia.

Barney, aimed at children, increased more than 20% and generated almost $200m during the year as it expanded across eastern and western Europe.

Chocolate power brands grew 10% led by Cadbury Dairy Milk and Lacta, both of which registered growth in the low-to -mid teens. Milka also posted strong growth in high single digits.

Power brand growth at 6% also slightly exceeded the 5% average in the beverages and cheese and grocery categories.

The gum and candy division, however, saw disappointing results as sales slipped 2%. Rosenfeld said this was largely due to a fall in gum sales, and attributed roughly 60% of the issue to category declines with about 40% due to share losses.

Power brands were also instrumental in driving growth in developing markets, which saw sales rise 12% over the year. Biscuits once again led the way, expanding at more than 20%, with the category seeing double-digit growth in China and Russia, helped by the strength of the Oreo brand.

Overall sales in China jumped 25% during 2012, with the company achieving revenues from this market of more than $1bn for the first time.

For the coming year, Rosenfeld said the company remained "laser-focused on driving our power brands".

Data sourced from Sharing Alpha; additional content by Warc staff