Mondelez will sell its U.S. gum and cough drop businesses
By Matt Collins Article may include affiliate links
Mondelez International has announced a shift in its business strategy that will see changes in how it markets and sells gum, cough drops and other products.
The company announced in May 2022 that it plans to seek a buyer for its Dentyne, Clorets, Bubblicious, Stride, Trident and Chiclets brands in the U.S. It will also sell off Halls, its line of cough and throat drops as well as powdered drink Tang and the Tate’s Bake Shop line.
However, Mondelez says it will keep the rights to some of its gum brands in “emerging” markets. No potential buyers were immediately identified.
Mondelez owns cookie brands Chips Ahoy and Oreo as well as Ritz, Triscuit and Club Social crackers, all of which it plans to keep in its portfolio.
Chocolate offerings under the Milka, Côte d’Or, Lacta, Toblerone, Cadbury, Green & Black’s, Freia, Marabou and Fry’s names will also continue to be owned by the company, as will its Sour Patch Kids line of candy and Belvita breakfast biscuits along with a handful of other international baked goods brands.
Sales of chewing gum have declined during the pandemic, presumably due to there being fewer social and workplace interactions that necessitate fresh breath. While many people are returning to offices and social events, there have also been significant shifts toward remote work, which could continue to affect the industry.
Mondelez, like many companies, experienced supply chain issues during the pandemic, including significant shortages of its Sour Patch Kids and Halls products.
While it searches for a buyer, Mondelez says it will continue to offer the product lines as normal while also focusing on ways to grow select brands internationally.
Exiting the gum and cough drop business, at least in the U.S., makes a certain amount of sense because those lines are more likely to share both ingredients and manufacturing processes as well as having potentially distinct marketing and distribution strategies.
Mondelez was formed in 2012 after Kraft Foods announced it would split itself into a snack food company and one focused on grocery store products. Technically, Mondelez was formed from the “old” Kraft Foods, with that division spun off as a new publicly traded company. Kraft would later merge with Heinz.