Mondelez to launch marketing blitz to boost sales

Cadbury owner Mondelez International will invest in a series of brand innovations and marketing activty to increase sales after posting weaker than expected sales in the fourth quarter.

Food company to invest in brand innovations and boost marketing activity to meet 5 per cent increase target.

The snacks company’s global revenues fell 2.2 per cent to $35bn for the year to 31 December, with Q4 sales down 1.4 per cent to $9.50bn (£6.1bn). The business said the drop reflected a “transitional year” following its spin off from Kraft Foods in September.

Chief executive Irene Rosefield says the brand will look to leverage the reach of its power brands through “innovation platforms and by expanding further into faster growing snack categories such as beverages over the next 12 months to reverse the declines.

Rosenfield adds:”This was a transformational year for our company. We remain relentlessly focused on driving our global snacking platforms and power brands while leveraging our strong routes-to-market to deliver on the exciting promise of our new growth company.”

The company is currently overhauling how it plans its marketing campaigns, including a heavier focus on developing markets, a stronger focus on young adults and integrating mobile further into its activity. It is hoped the move will boost loyalty for its key brands, particularly its gum brands, amid tough economic conditions.

Mondelez is set to invest more in gum brands such as Trident and Stride ID over the next year as it looks to kickstart its poorest performing category. The company said it was “disappointed” gum still “remains a challenge” after posting a 6 per cent drop year-on-year.

Meanwhile, rival Nestle reported group sales were up 5.9 per cent to 92bn Swiss Fancs (£64.5bn) for 2012 and the company said it was likely to deliver similar sales results in a still “challenging” 2013. The chocolate maker’s Yorkie brand grew in sales by 20 per cent in the UK and Ireland last year after its first TV campaign in a decade. The company’s ‘Choose a Chunky Champion’ campaign for its KitKat brand helped push sales up by more than 2 per cent in the UK.

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