Mondelez ramps up marketing support for power brands

Cadbury chocolate maker Mondelez International plans to accelerate revenue and category growth for the remainder of 2015 by increasing marketing spend and support behind its power brands and innovation platforms, along with increasing investment through in-store execution.

Mondelez International, Inc. reported its first quarter 2015 results last week that it said reflected solid organic net revenue growth of 3.8%. On a reported basis, net revenues were $7.8 billion, down 10.2%, including a negative 14.5 percentage point impact from currency.

“We’re making good progress executing our transformation agenda. Our solid first quarter positions us well to deliver our full year 2015 outlook and 2016 margin targets,” said Irene Rosenfeld, chairman and CEO.

“We remain intently focused on productivity and cost reduction to drive strong margin expansion and earnings growth. This enables continued investment in our Power Brands, supply chain, and sales and distribution capabilities to drive sustainable revenue and earnings growth.”

Power Brands sales grew 5.9%. Organic net revenue from emerging markets was up 10.8%, while developed markets decreased 0.5%.

Power Brands include billion-dollar brands such as Oreo and Nabisco biscuits, Cadbury, Cadbury Dairy Milk and Milka chocolate, Trident gum, Jacobs coffee and Tang powdered beverages.

Mondelez Australia, which also markets Philadelphia, Vegemite, Kraft peanut butter and the Natural Confectionery Co in Australia, was reported to have seen sales fall by 2.8% to $1.74 billion for the 12 months to December 2014.

In March, Mondelez International announced good news for the convenience and supermarket channels with a $20m investment to continue transformation of the Claremont, Tasmania plant as a globally cost competitive centre of excellence for chocolate manufacturing.

Mondelez International managing director, Australia and New Zealand, Amanda Banfield said that although the company had decided to withdraw its application for government funding, it remained committed to the Claremont operation.

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