Mondelez Sees Innovation Driving 10 Percent of Net Revenue, Aims for 15 Percent by 2026 Q2

Mondelez management view on Innovation share and distribution gains

Innovation share (“% of sales” from new ideas / innovation pipeline)

Management said it is difficult to precisely break down innovation contribution in the way the question asked, but they provided a clear benchmark for how much of net revenue comes from innovation. ¹

• Current innovation share benchmark: management stated that ~10% of net revenue is from innovations launched in the last 3 years (they characterized it as “even slightly below” then “slightly above” 10%). ¹
• Target / ambition: they said they want that to increase going forward, potentially to ~15%. ¹
• Near-term trajectory: they indicated that this year the “bars” representing innovation in net revenue will continue to go up. ¹

Management also linked innovation to specific outcomes (share gains and product execution), including the company’s comment that they are gaining share in categories and that innovation is “really working”, citing examples such as Ritz (e.g., “Ritz Drizzled or Sour Patch Kids chews,” plus other named innovations like Oreo starting to do well). ²

They further described how innovation is being managed operationally as “bigger and fewer bets” and “based on platforms” they can prove, while continuing renovation/flavor/PPA/seasonal work. ³

Biscoff (as an innovation example tied to growth)

Management’s Biscoff discussion was multi-layered (range extensions, licensing, and category expansion) and included early performance signals:

• Chocolate range collaboration: they described a special Biscoff range (tablets and other formats) and reported that it took 7% market share in Scandinavia in the first month and that Australia’s chocolate range added 3% growth to the category year-on-year. ³
• Ongoing cadence: they said they continue bringing new innovations every ~6 months under the Biscoff range. ⁴
• Licensing/distribution in emerging markets: they said they launched in India and sold out the line in the first month, are building a second line, and see Biscoff becoming an important biscuit brand in India. ⁴ They also said they’re preparing a Brazil launch for the beginning of next year. ⁴
• Economic framing: one manager characterized the overall Biscoff collaboration value as potentially $500 million to $1 billion over coming years. ⁵

Distribution gains (how management thinks about contribution to revenue growth)

Management addressed distribution gains in two ways: (1) what portion distribution represents in the revenue-growth math, and (2) where they are seeing distribution expansion.

Contribution math / quantification

• Management said it is “difficult to put an exact number” on “global gains” or how much distribution represents in revenue gains. ¹
• They did provide a rule-of-thumb framework. In a market like India or China, they said net revenue growth is typically ~50% same-store sales and ~50% extra stores opened, and they said they maintain that rhythm. ¹
• In North America they emphasized that even there, they see incremental distribution opportunities in specific channels. They cited away-from-home and convenience as channels where they can gain meaningful distribution, and tied this to their belief in top-line growth. ¹

Execution indicators (store count / channel expansion)

In response to distribution-focused questions, management reiterated concrete store/channel expansion:

• Emerging markets store growth: they said Brazil is now at ~1 million stores and they added ~100 thousand stores in India. ⁶
• Distribution growth further: they said they are continuing to build distribution in China in Southeast Asia, and expanding other channels. ⁶

How distribution gains tie to category/channel performance (North America example)

Management also described why distribution can keep contributing even in mature markets:

• They said North America has high single digit growth in value channels and away-from-home up mid single digits (as context for the distribution question). ⁷
• They explained that historically certain channels were not prioritized because growth in “food channel” / major channels was already substantial, but now they believe there’s runway:
  • Value channel: consumers are migrating to value; management said they’re developing special pack and working on margin structures to “push much harder.” ⁸
  • Convenience: management said convenience needs the right product range; while Oreo/biscuits fit home consumption more than typical convenience missions, they believe bars/impulse products (e.g., “Cliff” and other bars) create opportunity, and they’ve started doing more directly in some cities rather than only through brokers. ⁸
  • Away-from-home: they described it as an opportunity that requires working with clients (e.g., QSRs and cafeterias) and said they’ve been building the infrastructure globally. ⁸

Bottom line (what management implied about the relative strength of innovation vs distribution)

• Innovation share: management sees innovation as an increasingly important contributor to net revenue—~10% currently (with management aiming for ~15%) and expecting innovation’s contribution to keep rising this year. ¹
• Distribution gains: management does not give an exact global percentage contribution, but they provide a framework (e.g., India/China often ~50/50 same-store vs extra stores) and they highlight ongoing distribution expansion with specific store additions (Brazil and India) plus channel-specific opportunities in North America (value, convenience, away-from-home). ^{1 6}