As it continues to build its eCommerce business and invest in companies through its SnackFutures unit, Mondelēz International, Inc. raised its full-year outlook with its second-quarter earnings results. The company also “continued to make good progress” against driving accelerating consumer-centric growth, among other strategies, per the firm.
Chief Executive Officer Dirk Van de Put said in a conference call with analysts on Tuesday (July 30), that the company is committed to “increasing and optimizing investment” behind its global and local brands as well as channels “to create a solid foundation for future growth.” Van de Put noted that the company is putting more emphasis on its local jewels than in the past. Nutter Butter, which he said is an “iconic U.S. brand” that celebrated its 50th anniversary this year, is delivering double-digit growth with fresh investments. The firm is also continuing to grow its eCommerce business.
Its global eCommerce business reported net revenue grew over 30 percent in the quarter. And its U.S. eCommerce business grew nearly 80 percent with continued strong growth in markets such as China, where partnerships with eTailers are helping the firm gain share. The company also made investments through its SnackFutures unit in the paleo vegan chocolate company Hu and prebiotics company Uplift Food. It also recently took a majority stake in Perfect Snacks, which Van de Put described as “the pioneer in refrigerated nutrition bars.”
Van de Put noted that the company is excited about the brand because its products have great well-being credentials. And he pointed out that its organic non-GMO protein-rich snacks are on-trend with consumers. He also noted that the company is growing fast. Mondelēz will operate Perfect Snacks as a separate business to nurture its culture and spirit, according to Van de Put. At the same time, key members of its founding family are keeping a significant minority stake and will continue to lead the company.
Mondelēz also announced sustainable and mindful snacking goals in the second quarter. As part of its sustainable snacking strategy, Van de Put noted that the company is committed to sourcing 100 percent of its cocoa for chocolate through Cocoa Life. And the company is moving to 100 percent recyclable packaging by 2025. And, to encourage mindful consumption by consumers, the company will include portion amounts and mindful snacking information on all packages globally by 2025.