Mondelēz to offload US gum brands, prioritises long-term growth

The decision comes after Mondelēz launched a review of its gum business last year. The company has begun looking for a buyer and there’s no timeline yet for a sale, a spokesperson told CNN Business.

In an investor event held on Tuesday, Mondelēz updated its long-term algorithm to 3 to 5% organic net revenue growth, up from previous guidance of 3%+.

Our competitive advantages in the marketplace and focused strategy on global snacking leadership give us great confidence in our ability to sustain strong top- and bottom-line growth for many years to come​,” said Dirk Van de Put, Chairman & CEO. “Building on our category leadership, favorable geographic footprint, and the power of our iconic brands, we are well positioned for stronger growth in the decade ahead​.”

The company also disclosed its intention to divest the global Halls business. Mondelēz will maintain the brands and products within its candy business, as well as its emerging market gum business.

Covid pandemic

In the early days of the Covid pandemic, gum sales dropped as foot traffic at convenience stores slowed and more people stayed home, hitting Mondelēz’s gum revenues which were already dipping in certain markets.

The company reported it will continue to prioritise growth, execution and culture as three pillars of its strategy — investing in differentiated marketing and sales capabilities, while strengthening its local-first operating model to empower employees and promote a growth culture.

By further advancing its Snacking Made Right agenda across a focused set of environmental, social and governance priorities, Mondelēz said it aims to help drive positive change at scale, creating long-term value for both the business and its stakeholders.

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