Mondelēz International, the company behind Cadbury Dairy Milk and Oreo cookies, said India was one of its fastest growing markets in 2018 with double-digit organic net revenue growth helped by new launches and increased distribution. The confectioner said it touched millions of stores and combined it with local manufacturing.
“During the past five years, we have rationalized and upgraded our value chain. This has helped contributions over 600 basis points of margin expansion. Today, we have a strong supply chain with the right margins and volume growth will generate incremental margin dollars, which allows us drop part of that to the bottom line, but also to reinvest part in future growth,” chief executive officer Dirk Van de Put said at an Consumer Analyst Group of New York (CAGNY) Conference call.
More than a year ago, the chocolate giant rejigged its distribution model in India by dividing its portfolio into two, with separate sales teams to take on rising competition. The teams were divided according to where products were stocked – shelves or refrigerators. “To have a products present in the farthest corners of the country, we’re constantly increasing our stores coverage, so in 2018 alone, we add 2 lakh outlets and installed an extra 70,000 mini fridges in India,” added Van de Put.
For the $26 billion Mondelēz, the Indian business accounts for less than $1 billion by revenue, but market share of flagship brand Cadbury Dairy Milk in the country was the highest for Mondelēz globally.
Source: ETRetail
