Mondelez develops its own trendy new brand
- Mondelez International Inc. is introducing a new line of crackers and snack bars made without artificial ingredients or GMOs, according to Bloomberg. The line is called Vea, and is slated to be appearing on store shelves across the U.S. in July.
- The company also announced it was changing some of its existing products to better attract millennial consumers.
- Mondelez will remove genetically modified organisms from its popular Triscuits crackers and will highlight that the product is made from just three ingredients.
Developing a new product aimed at a particular trend isn’t a new strategy, but reaching out to health-conscious consumers is a savvy move at this time.
According to Packaged Facts, demand for healthy snacks has been growing during the past five years. The segment's CAGR has risen 4.7%, outpacing overall food and beverage sales growth.
Some analysts may see the new on-trend product development as a sign the company is making itself more appealing for acquisition. Even if that’s not the mindset now, bringing a product to market that is aimed at millennials—one of the most important shopper bases today—is a smart decision. Last year, millennials surpassed baby boomers as the United States’ largest living generation, at more than 75 million strong.
Mondelez's move to develop a new product from within is atypical of the recent trends in the industry. Many times, when a large legacy company wants to offer something that is trendy and different, they acquire or fund a smaller company. With this move, Mondelez is hearkening back to old ways of doing business and utilizing its own research and development arm.
Additionally, Mondelez’s decision to reformulate some of its existing products is also likely going to make consumers clamoring for clean labels take notice.
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