Milling & Baking News - February 25, 2020 - 10

Business

Mondelez takes 'playful' approach
to grow Oreo sales even further
BOCA RATON, FLA. - The Oreo brand,
first introduced in 1912, continues to
put up sales growth in its second century. Mondelez International, Inc. expects
growth to continue through licensing,
geographic expansion and a "playful"
marketing approach.
"These days, brands need to stand for
something," said Dirk Van de Put, chief
executive officer, Feb. 18 at the Consumer
Analyst Group of New York Conference
in Boca Raton. "They need to have a purpose to really connect with consumers. So
for example, Cadbury's purpose is generosity, and Oreo's is staying playful."
Mondelez brands are moving into other categories besides their primary ones,
he added, giving the example of Oreo being in ice cream, frozen desserts, yogurt,
chilled snacks and cereal.
"Our licensing business grew doubledigit in 2019 from a combination of royalties
and ingredient sales," Mr. Van de Put said.

The Oreo brand surpassed $3 billion in
net revenue in 2019.
"In the U.S., the No. 1 Oreo market,
we activated the brand strongly by keeping it contemporary through high-impact
events, like our 'Game of Thrones' partnership, and in China, the No. 2 Oreo
market, we continue to increase the
local relevance of
the brand through

MONDELEZ INTERNATIONAL

unique activations like the iconic Forbidden City Oreos," Mr. Van de Put said.
Plans for Oreo are in place for 2020.

Cedar's Foods executives acquire
overnight oats maker brekki
HAVERHILL, MASS. - The executive
team at Cedar's Foods has acquired
brekki, a Carlsbad, Calif.-based maker of
dairy-free, ready-to-eat
overnight oats. Terms of
the transaction were not
disclosed.
Brekki was formed in
2017 by beverage industry veteran Greg Peyser.
BREKKI
"When we started
brekki, our mission was simple: deliver a
nutritionally balanced product that tastes

great and is made of simple, plant-based
ingredients," Mr. Peyser said. "Our team
will be able to tap the Cedar's Foods' executive team's vast experience and expertise to
ultimately get oats out of
the pantry and put brekki in more households."
Upon completion of
the transaction, brekki
will operate as a separate venture, with manufacturing and
co-packing taking place at Cedar Foods'

Tighter sugar supply seen on cut
in projected imports from Mexico
WASHINGTON - The U.S. Department
of Agriculture, in its Feb. 11 World Agricultural Supply and Demand Estimates
report, projected the carryover of sugar
in the United States on Oct. 1, 2020, (201920 ending stocks) at 1,516,000 short tons,
raw value, down 40,000 tons, or 2.6%,
from the January projection and down
267,000 tons, or 15%, from 1,783,000 in
2019, resulting in an ending stocks-to-use
ratio of 12.4%, down from 12.7% in January and down from 14.5% in 2019.
U.S. sugar production was forecast at
8,158,000 tons, unchanged from January
10 / February 25, 2020

Milling & Baking News

but down 9% from 2018-19 and the smallest combined crop since 2010-11, based
on beet sugar outturn at 4,444,000 tons,
the lowest since 2008-09, and cane sugar
at 3,713,000 tons, the lowest since 2013-14.
Total imports were projected at
3,841,000 tons, down 40,000 tons from
January, with tariff rate quota imports at
1,674,000 tons, up 70,486 tons, other program imports at 350,000 tons, unchanged,
high-tier imports at 100,000 tons, unchanged, and imports from Mexico at
1,717,000 tons, down 110,180 tons, or 6%.
The T.R.Q. increase reflects the U.S. Trade

"We will strengthen the core by communicating the brand's playful purpose
through on-target activations, like the Oreo
Music Box," he said. "We'll attract new
consumers by entering new segments, like
the more permissible thins platform or the
more indulgent enrobed Oreos platform.
We also intend to grow Oreo strongly beyond U.S. and China as well as increase
the brand's reach through licensing. While
Oreo is already the world's cookie, we
have a huge opportunity to grow it further
without reinventing the wheel."
While Oreo remains a powerhouse
among Mondelez snacking brands, premium and well-being are areas of growth
in the segment, he said.
"Perfect Snacks and Tate's are good
examples of recent acquisitions in these
spaces, both growing at strong doubledigits," Mr. Van de Put said.
Mondelez International, Deerfield, Ill.,
in 2018 acquired Tate's Bake Shop, which
makes thin, crispy cookies and other
baked foods. Then in June 2019, Mondelez acquired a majority interest in Perfect Snacks. MBN
production facilities in Haverhill. Mr.
Peyser will remain with the company as
director of sales.
"Brekki is a superior product," said
Chris Gaudette, chief financial officer of
Cedar's Foods. "Our executive team is
here to lend our expertise in the C.P.G.
space to help propel the brekki brand
from a distribution and marketing standpoint. We're looking forward to the opportunity to partner and help take brekki
to a new level and make it as much a part
of the breakfast tradition as orange juice."
Cedar's Foods produces and co-manufactures a variety of Mediterranean
foods, including hummus, tzatziki, salsa,
salads and pita chips. MBN
Representative's reallocation of unused
country-specific raw sugar quota allocations
for 2019-20 announced Feb. 6, with a resulting raw sugar World Trade Organization
shortfall projected at 40,000 tons, raw value.
Total projected use in 2019-20 was unchanged from December at 12,265,000
tons, including 12,125,000 tons for food.
For Mexico, sugar production was forecast at 5,672,000 tonnes, actual weight,
down 99,994 tonnes from January and
down 12% from 6,426,000 tonnes in 201819, based on a Feb. 5 survey-based estimate from CONADESUCA. Beginning
stocks, imports and domestic forecasts
were unchanged from January, but exports were lowered 101,388 tonnes to
1,502,000 tonnes. MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - February 25, 2020

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