CHICAGO – Mondelez International Inc. has set a goal to generate 20% of its sales in 2030 through digital commerce. Such initiatives currently make up 6% of sales, which were $28.7 billion in fiscal 2021. Reaching its goal will require embracing a variety of platforms and strategies throughout the world.
“We have expanded our scope from e-commerce to digital commerce, building a strong leadership position and driving incremental growth,” said Maurizio Brusadelli, president of Asia Pacific, Middle East and Africa, during the company’s May 10 investor day. “China is a great example of our digital commerce strategy in action, with a diverse landscape and multiple platforms and business models. In some of our categories, digital commerce accounts for more than 20% of our revenue already. We have seized the China opportunity by leveraging digital commerce for marketing and innovation, increasing investment and moving with speed and agility to learn as we go and improve our approach.”
Martin Renaud, chief marketing and sales officer, said 80% of Mondelez’s e-commerce sales are in business-to-consumer models.
“We envision that to continue to be our biggest subsegment for e-commerce, and we are investing a lot of capabilities in digital tech insights and analytics, supply chain, obviously, also new talents and new capabilities from a people point of view,” he said.
Renaud added that Mondelez sees two other e-commerce models that have potential.
“The first one is what we call direct-to-consumer, which is around 15% of our sales today,” he said. “It’s probably one where we still need to acquire even more capabilities because that’s new, we need also to adapt our offer from a consumer point of view, different price points, different offers, but we see also a very interesting potential here.”
The other e-commerce model is business-to-business, which Renaud said is currently 5% of digital sales.
“… We see (it) growing very fast and probably will accelerate, which is allowing us to increase our distribution in areas where with our own system, we couldn’t go,” he said.
Dirk Van de Put, chairman and chief executive, said the company will be investing more than $1 billion to become a digital commerce leader in snacks.
“We’re building our talent and capabilities, integrating them deeper into the business and also increasing digital advertising,” he said.