MONDOLEZ, THE COMPANY behind the Oreo and Cadbury brands, says that it plans to have 50% of its portfolio contain healthy snacks within the next five years.
Healthy snacks currently comprise more than a third of its total revenue, according to Executive Vice President and Chief Growth Officer Mark Clouse.
They include products like Belvita, the breakfast biscuits marketed as ‘on the go’ snacks.
Major food companies, such as Kellogg, General Mills and others, are shifting from foods that are perceived by some consumers as too processed to options that are considered healthier.
Kelloggs, for example, is behind the Kashi brand, known for its organic cereals and products. It merged with Kashi Co in 2000.
As Wall Street Journal reports, in 2007 and 2008, Kellogg “put its sales force in charge of most Kashi retail sales… That mean that the sales force that sold Frosted Flakes also would sell Kashi cereals.”
So how are they going to do it?
Clouse said earlier this week that Mondelez International Inc is looking to simplify ingredients and nutritional information for its products as it develops new goods to meet consumer demand for healthier items.
The executive said that the company expects to focus 70% of new product development efforts on healthy goods over the next five years.
The company, which also makes products like Ritz crackers, has been slashing costs to offset weak growth. Cost-cutting has become common for major packaged food companies, which are up against volatile economic conditions overseas and shifting tastes that favour foods marketed as fresher or more natural.
Despite laying out its projected plans, Mondolez didn’t go into huge detail into how it is going to make the snacks healthy – or what ‘healthy’ means.
What do you think of this move?
- Additional reporting Aoife Barry
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