Baking&Snack - November 2016 - 14

Mondelez sees new initiatives driving growth
With profitability surging and sales
growth slightly lagging targets, Mondelez
International has stepped up effort to bolster volume-driven revenue growth, Irene
Rosenfeld, chairman and CEO, said in an
October earnings call.
The introduction of Oreo-branded chocolate in the US and Milka chocolate in China
are among two initiatives Ms. Rosenfeld highlighted aimed at helping Deerfield, IL-based
Mondelez sustain moderate revenue growth
in a challenging macroeconomic environment.
"We're filling key white spaces by establishing
beachheads in key markets," Ms. Rosenfeld said.
"We recently launched chocolate in China, where initial response
to our Milka bundle has been very positive. We're also launching
mainstream and premium chocolate in the US, where we believe the
Oreo and Green & Blacks brands will resonate well with consumers.
"We acquired the license to sell Cadbury-branded biscuits around
the world. This will enable us to grow our Cadbury choco-bakery

portfolio in more than 100 markets. And in
Japan, we launched Oreo, Ritz and Premium
biscuits in September, following the repatriation of our brands there."
Other steps the company has taken to drive
growth include stepping up investments behind
Mondelez power brands, selectively investing "to narrow price gaps" when needed and
"sharpening connections with our consumers
through digital marketing, and innovating to
redefine permissible snacking," Ms. Rosenfeld
She said the efforts to date have paid
"For example, Oreo, belVita and Milka all posted mid to high single-digit growth year to date," she said. "And we have solid momentum behind our Thins Biscuit platform, which includes innovations
like Oreo Thins and Chips Ahoy Thins on the sweet side, and Good
Thins and Ritz Crisp & Thin on the savory side."
- Josh Sosland, Milling & Baking News

PepsiCo sets lofty agenda for sustainability
PepsiCo's new 2025 sustainability program features ambitious
health and wellness, environmental and social goals. In addition
to reducing the amounts of sugar, sodium and fat in many of its
products, it also focuses on improving the efficiency of manufacturing and distribution operations while extending its role as an
environmental steward.
"To succeed in today's volatile and changing world, corporations must do three things exceedingly well: focus on delivering
strong financial performance, do it in a way that is sustainable over
time and be responsive to the needs of society," said Indra Nooyi,
chairman and CEO. "The first 10 years of PepsiCo's 'Performance

14 Baking & Snack November 2016 /

with Purpose' journey have demonstrated what is possible when a
company does well by also doing good. We have created significant
shareholder value while taking important steps to address environmental, health and social priorities all around the world."
Purchase, NY-based PepsiCo's new plan is based on the UN
Sustainable Development Goals and will focus on three priorities:
helping to improve consumer health and well-being through the
products it sells, protecting the planet, and empowering people
around the world. For a more in-depth rundown of PepsiCo's sustainability plan, readers can visit
- Keith Nunes, Food Business News

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