Name: Mondelez CEO Cooks Up A New Recipe for the Oreo Maker
Uploaded: 2018-10-19
Duration: 5 min 6 s
Description: Mondelez is targeting consumers in China and India to develop an appetite for American snacks.

[ MUSIC ] Dirk, it's almost a year now since you've been made CEO of Mondelez and recently you've finally came out with a strategic plan for the company, and you're calling it snacking made right. What doesn that mean? Well, snacking refers to the fact that we are The world's largest snacking company, 85 % of the products that we sell are snacking product. We are in 160 countries. So it means we going to continue to build our snacking direction, which is working for us. Made right refers to the fact that the consumer these days has many diversion tastes, and we wanna make sure that we offer the consumers The right snack at the right moment, made the right way. Well, you know, you're right about consumers thinking more about snacking as opposed to a real meal, but also they're moving towards healthier, fresh foods, trying to stay away from sugar. So, what does this mean for some of Mondelez's big brand names like Oreo cookies, Cadbury chocolates, I mean what will that mean for your sales and also for your growth plans? I think the consumers and the way they look at health is evolving quite a lot and so we're trying to make sure that we offer as wide a range of product as we possibly can and so an Oreo these days Is existing to cookie form but also existing in indulgent form, in chocolate. It also exist in a more healthy form in yogurt. And so we can use these brands that we have to extend them into adjacencies, what we call other snacking categories To sort of cover the whole range of snacks that a consumer might want. He's also been talking as part of your strategic plan that you want Mondelez to be more nimble, much faster, experiment more. What changes are you making to get new ideas and for people to experiment? First of all, there is a whole digital if I can say so and that means that the consumer these days, They way they get introduced to a brand or the way they relate to a brand is completely different and things can go much faster and you can learn a lot faster. So what we want to do is much more real time reacting to what is going on with the consumer on social media or experimenting with new products and so on. In innovation we going to do something called test and learn Before in the old days it was go big, try to do an innovation that works all around the world that created another big global brand. These days it's find something that really connects with consumers, a brand they really love. And we'll take it from there and see how big it gets. Well one of the innovations I heard about [ UNKNOWN ] come out with is Hot chicken wing and wasabi flavoured Oreos in china. So may be that doesn't work for the American palette, it certainly not for me. But is that the kind of innovation internationally that you are talking about? Yes. Exactly. We cannot invent what types of flavours oreo should have from Chicago. We need to let out Chinese. Our Indian or our South African teams decide on that and that's exactly what we mean, yes. Tell us a little bit about E commerce, because you've been talking more about that, getting more business from online sales, how is that growing? It's growing fast. It's growing over 40 % a year for us. We will do about $ 1 billion of sales in e- commerce around 2020. In our world, the snacking world, you need to recreate the impulse location online. Because as you go through the store, you might have written down that you wanna buy Oreo, but you see something else in the snacking aisle and you're gonna buy it. What we need to recreate in the e- commerce or in the online space Is an import, so if you gonna buy milk as you doing your shopping lets say we wanna say a pop up that says, do you want some [ UNKNOWN ] with that? As you said it is a kinda of [ UNKNOWN ] is kinda of grab and go purchase it's not thought out in advance. Can you really change consumer behavior and turn him into online shoppers? Yeah, there's always a part that is what we call pantry filling which is a planned by and many people will buy biscuits or chocolates when they go to the grocery store. As you start to buy more online you might [ UNKNOWN ] to the grocery store. So we still need to make sure that When you do that online shopping trip that biscuits and chocolates come up for you. What your [ UNKNOWN ] investors were expecting you to come in and change things up, but they were also expecting their stock to perform better too. How much longer do they have to wait to see that happen? What we're proposing to our investors is, on the one hand our bottomline will keep on increasing On the other hand, we will accelerate our top line growth and that these days commands a premium. So we expect our stock price to go up quite considerably in the coming years as we show that our top line starts to accelerate. And so we think that from 2020 you will see an accelerated growth picture for us. [ BLANK_AUDIO ]

Mondelez CEO Cooks Up A New Recipe for the Oreo Maker

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Mondelez is targeting consumers in China and India to develop an appetite for American snacks.