Mondelez International is lining up plans to cut around a quarter of its SKUs as part of moves to adapt to the volatility Covid-19 has brought to trading.

The Cadbury and Oreo owner is looking to streamline production amid the pandemic, chairman and CEO Dirk Van de Put said.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

“That’s always a discussion in a company like ours, that we have too many flavors, too many sizes and so on,” Van De Put said in an interview on Bloomberg Television. “This is the moment to drive that.”

The US snacks giant, also home to Tuc crackers and Milka chocolate, confirmed to just-food the target, which covers the company’s global operations, is for “broadly a quarter” of its SKUs.

“We are making adjustments to in order to maintain business continuity and customer service, as well as to prepare to emerge stronger,” Mondelez said.

The comments built on those Van de Put made in April when, during a discussion of Mondelez’s first-quarter financial results, he said the company, in the early weeks of the impact of Covid-19, had started to look concentrate on specific products.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

“Our supply chain has been resilient, and we’ve delivered consistent service to our customers. Case-fill rates, in fact, are at better-than-average levels. We’ve seen an increase in demand in developed markets, and we’ve met it by focusing on the most important SKUs,” Van de Put told analysts at the time.

He also said Mondelez would look to adapt to the prospect of recession by lowering the number of SKUs in its range, without specifying a number or target. “We are reducing our portfolio in the number of SKUs and also the number of innovation initiatives,” Van de Put explained.

Just Food Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Food Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving food industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now