Mondelez to expand presence in China

With disposable incomes rising and more consumption scenarios appearing in China, Mondelez International Inc, a United States-based snacks manufacturer, will expand its presence in the country by introducing a broader range of cake products to sustain growth, said a senior executive.

After investing 53 million yuan ($7.34 million) to build an intelligent warehousing center in Beijing to support its digital and green development in late February, Mondelez, the maker of Oreo, Chips Ahoy, Pacifics and Stride gum, will launch a range of French desserts under European brands in China in the second half of this year, with preparations already underway in collaboration with its clients.

The US company will expand its Oreo Airy Cake line with new flavors set to be released in the third quarter of this year. To cater to the latest consumption trends in China, the company will also introduce slice-packaged options in small retail outlets and supermarkets, accompanied by targeted marketing initiatives, said Grace Zhu, the group's vice-president of marketing and growth for China.

"Last year, we carried out a survey on shoppers across various channels. Previously, we assumed that consumers might shop across seven different channels, but our findings show that this number has increased to 12," said Zhu.

She said that traditional formats such as hypermarkets and supermarkets are evolving and becoming more distinct.

For instance, the appeal of membership stores lies not in the abundance of products, but in a more curated selection that better caters to individual needs. Similarly, for young consumers in smaller cities, the appeal of snack stores that offer high-quality products at low prices is based on the same principle, according to the US company.

"At present, we are studying China's consumer lifestyles and snacking habits anticipated for 2030," she said, adding that based on this research, the company will identify which products it should introduce to the Chinese market between 2025 and 2027.

Mondelez's cookie brand Oreo has recently launched a campaign called "The Art of (Re)Play." Inspired by traditional Chinese culture, the brand and artists unveiled their art pieces, known as the Modern Baizitu, both in Shanghai's subway stations and through WeChat mini programs in late March.

Baizitu is an elongated handscroll that portrays 100 children participating in a variety of activities and games from ancient China.

"Through this campaign, we aim to remind individuals of the joy and importance of play, fostering a sense of togetherness and creating moments of pure delight," Zhu added.

Over the past decade, Mondelez has invested more than 1 billion yuan in the Chinese market for digital transformation, energy and production layout, infrastructure construction and other areas. The group's global sales revenue reached $36.02 billion in 2023, surging 14.35 percent year-on-year.