Oreo will further expand its reach next year, with a new identity and quality improvements. As the company’s star brand, Oreo is reaching USD 5 billion in revenue and growing mid-single-digit this year, Mondelez executives highlighted at Barclays 19th Annual Global Consumer Staples Conference.
The brand has shown high single-digit growth in terms of revenue for almost a decade, and has further room to grow, Mondelez anticipates. “From the core proposition of the Oreo Cookie, we have been able to establish businesses in terms of new flavors,” Luca Zaramella – Executive VP & COO illustrates, with new offerings including Minis, Thins, Zero or Gluten-free, all segments that will be in focus next year. “In terms of opportunities, what we are finding out, particularly in the market where there is a high maturity level and penetration of Oreo, is that propositions like Oreo Minis, Oreo Thins or Oreo Zero Sugar are really incremental and they tailor to a different cohort of consumers from where the brand is usually accessed,” he added.
“It is a brand that we want to relaunch in 2027, and it is a 360-degree relaunch. It is more than a logo change. We are going to improve the packaging of Oreo. We are going to have extensive PPA changes to hit more price points and to be able to provide access to the brand through different channels. We’re going to have quality improvements. There is going to be, in some cases, new formulas that will result in better labels,” Zaramella anticipates.
Snacking opportunities
Mondelez International continues to see snacking as a great trend in food, particularly in emerging markets, with chocolate among the best performing categories and biscuits as a big opportunity. This includes Oreo, which could further expand on its USD 5 billion global empire. While biscuits have a stronghold in France and Belgium, the executives illustrate, but elsewhere in Europe, Mondelez’s share in biscuits is below the 10% to 15% threshold, which spells opportunity across several markets.
The Chipita acquisition has shown Mondelez an welcoming segment in cakes and pastries, as is the bars category. “Europe is clearly a place that can deliver growth,” Zaramella emphasizes.
“In developed markets, such as Europe, chocolate has shown us with Biscoff that there is a space between where we play in mainstream and in upper mainstream, where we have the right to play with our brands, call it Milka or Cadbury. And so the premiumization trend is a clear one, elevating the indulgence is a clear trend that we see,” Zaramella said.
Amit Banati, Executive VP & CFO, also highlighted that the company sees opportunity in “Scaling up offerings in better-for-you, Oreo Zero Sugar, Oreo Gluten-free, premium indulgence with Tate’s, with Oreo Thins, and the whole protein offerings in snack bars,” with increased investments planned.
The European market is performing well despite chocolate price volatility. Mondelez observes the UK and Polish markets have been especially lucrative. There is “ample opportunity” in seasonal offerings across different countries, the company anticipates: “We have opportunities in terms of choco-bakery, for instance, mixing our chocolate brands with our biscuits brand,” Zaramella added. “We created massive businesses in places like Germany by being deliberate on what we wanted to do with Milka Choco & Bakery. And that’s a model that we haven’t replicated yet in places like the UK,” he noted.
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