Mondelēz adds new offerings as consumer definition of value changes

Snacking giant Mondelēz International is adding new “value” options to its lineup as the way shoppers define the term has changed amid a prolonged run-up in consumer prices.

Dirk Van de Put, Mondelēz’s CEO, told Wall Street analysts that value has evolved among some consumers from price per pack — which benefited the company’s family and party size offerings — to an overall basket size the shopper can afford.

This is particularly notable among lower income consumers. Van de Put said if biscuits (cookies and crackers) are at the right price point, people will buy them. Otherwise, shoppers won’t add the products to their carts.

He said Mondelēz is implementing new “targeted promotions that are probably going to offer a little bit more price” on brands like Chips Ahoy! that have been affected by the “sort of hesitation” from lower income consumers.

The Chicago-based packaged food manufacturer also plans to add more Oreo, Chips Ahoy! and Ritz packs later this year within the $3 to $4 price range.

“More promotions, smaller pack sizes that we will offer, driving distribution, those are the solutions we are planning for,” Van de Put said. “We’re already seeing the benefits.”

Chips Ahoy! is “recuperating quite nicely,” while Oreo and Ritz are increasing their market share, he noted.

Where consumers shop also is changing, Van de Put told analysts. He pointed out that the biscuit category is seeing the largest growth in places like Walmart, while in grocery they are seeing a share decline.

Food Dive