Mondelēz International Inc has announced that it plans to sell its chewing gum business, including brands Trident and Dentyne, in developed markets, as well as its Halls cough drop brand, as the company focuses on chocolates and snacks.
The Cadbury maker, which will keep its gum brands in emerging markets, said it was reshaping its product line with the aim of generating 90% of revenue from chocolates and biscuits.
Mondelēz, which reported sales of $7.76 billion last quarter, started a review of its gum business a year ago after the demand for the units' brands took a severe hit during COVID-19 lockdowns.
Gum sales have since recovered as people start stepping out and returning to their routines following the easing of pandemic restrictions.
The company added that it aims to strengthen its presence in its core categories in major markets by building on existing distribution, expanding in high-growth channels, and leveraging its iconic brands to establish multi-category leadership positions.
Dirk Van de Put, chairman and chief executive officer of Mondelēz International, said, “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.
“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.”
News by Reuters, additional reporting by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.