CHICAGO, United States — CPG giant Mondelēz has revealed plans to acquire a portfolio of healthy snack brands, as better-for-you alternatives continue to make their way into the shopping baskets of health-conscious consumers.
With the global healthy snacks market valued at $23.5 billion in 2018, and rising, and as governments around the globe continue to ramp up their efforts to curb a growing obesity epidemic, not only is the category ripe for opportunity. But the food group told the Financial Times:
“We feel it’s the right thing to do….to help the consumer make conscious decisions about what they eat and educate them.”
Adding: “It’s something that also even our stakeholders – our investors, our employees – request, that we do the right thing as a company.”
Currently, Mondelēz’ brands such as Cadbury, Milka, Toblerone and Oreo tend to sit within the more indulgent end of the snack market. However, this isn’t the first move the conglomerate has made in order to better position itself for changes in consumer behaviour.
Last year, it acquired US-based Perfect Snacks, which makes protein bars, peanut butter cups and other healthy snacks, for $284 million, and it says it has been working on reducing sugar, salt and saturated fat across all of its products.
A report released by the company in May also highlighted its significant progress towards achieving its 2025 sustainable and mindful snacking goals.
“As we collectively manage the global impact of COVID-19, now more than ever is the time for companies to do what’s right and drive sustainable business growth at scale,” said Dirk Van de Put, Chairman and CEO of Mondelēz International.
“At Mondelēz International, our purpose-driven approach to sustainability and wellbeing is focused on reducing our impact on the environment and creating a positive impact on society as part of our mission to lead the future of snacking by delivering the right snack, for the right moment, made the right way. I’m proud of the significant progress we’ve made in 2019 and believe our 2025 Snacking Made Right goals are the right goals to focus on for the future,” he added.
Mondelēz bid to align its portfolio with the wellbeing needs of millennial and Gen Z demographics, as well as encouraging mindful snacking habits, has already seen 16% of its global snacks net revenue generated from portion control snacks.
However, it hopes to increase that figure to 20% by 2025 with the help of a bolstered portfolio — which according to Van de Put, will involve acquiring brands that already have their own prestige and client base.
In doing so, it joins a growing wave of FMCGs that are snapping up startups within the high-growth healthy nutrition and wellness categories.
Last year Mars acquired DTC nutrition company Foodspring, while Coca-Cola made a $20 million equity investment in Kombucha maker Health-Ade. In June, Nestlé Health Science also announced plans to acquire a majority stake in $100 million collagen-focused nutrition and supplement brand Vital Proteins.