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Mondelez to Boost Healthy Ad Spending

Mondelez to Boost Healthy Ad Spending


DEERFIELD, IL
Thursday, September 10th, 2015

Mondelez International is reportedly adding a big boost for its advertising budget, increasing healthier offerings, and expanding its e-commerce business to boost sales as consumers eat less processed food.

Mark Clouse, Chief Growth Officer, MondelezIn an interview with CNBC, Mark Clouse, Mondelez’s Chief Growth Officer, unveiled the company plans to increase its advertising spending to 10 percent of revenue by 2018, up from 8 percent last year. The snacking giant also is aiming to grow its e-commerce business to $1 billion in 2020, up from $100 million today.

In the next five years, Mondelez hopes to generate half of its revenue from snacks “perceived as healthier,” Clouse reports, up from a third currently. This includes individually wrapped snacks that are 200 calories or less and products that have nutritional attributes, such as fewer ingredients and no artificial flavors.

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"If you look at where consumers are going, we have to better position the portfolio to fully unlock the potential for growth," Clouse said.

Since parting from Kraft in 2012, Mondelez has been focused on improving its profit margins through reducing its expenses. Currently, the company is working on plans to cut $3 billion in costs by the end of 2018, but until now has not revealed what these saving would be reinvested in to. Clouse said Mondelez’s approach will involve changing existing products to suit consumer needs, potentially focusing on more healthy products, as well as moving into new markets and categories that offer growth potential.

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