June 7, 2021
Mondelez International said it is conducting a “strategic review” of its gum segment that includes brands such as Trident and Dentyne. The snack giant is focused on restoring the segment to pre-COVID-19 levels before it decides to “potentially assess whether there are other avenues for us to create more value for Mondelez. Mondelez is “looking at all options to improve value” in gum and that “there are no foregone decisions.”
Gum has been one of the hardest hit segments during the pandemic as consumers spend less time on the go where much of the consumption in the category takes place. As consumers started spending more time snacking, Mondelez embraced the trend with an enviable portfolio of brands including Oreo, Ritz and Triscuit.
But Mondelez also has looked to stoke growth by acquiring brands, including Hu, a maker of premium snacks and chocolates made from simple ingredients, and a majority stake in Perfect Snacks, the manufacturer of organic, non-GMO, nut butter-based protein bars and bites.The strategy to double down on snacks has made its gum business, which also includes Bubblicious and Stride, somewhat of an out-of-place category at the Chicago-based company. Its troubles were further exacerbated during COVID-19.
While Mondelez hasn’t definitively decided what it will do after the review — it could ultimately decide to keep gum — a sale would be the most likely option given the position in its portfolio and the cash a sale could generate. The money could be spent on innovation or to purchase other snacking brands.