Mondelēz partners with Post Holdings to give consumers new way to enjoy iconic brands

Mondelēz has teamed up with Post Consumer Brands, Post Holdings’ cereal division, to launch several cereal products using flavors of its long-established cookie and cracker brands, including Honey Maid, Nutter Butter and Chips Ahoy.

The company also brought back the Oreo-inspired cereal that was available exclusively in US Walmart stores 10 years ago.

“These products play into the nostalgia trend… while also allowing consumers to experience a favorite flavor from their past in a new way,” said Mondelēz’s spokesperson Kimberly Fontes.

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Source: Mondelēz

Mondelēz’s former CEO Irene Rosenfeld, succeeded by Dirk Van de Put in November last year, had envisioned the company to be a global snacking powerhouse. The company, however, remained blank in the cereal category.

Asked if the partnership with Post Holdings signals a potential foray into a new category, Fontes said: “These are licensed products and not an entry by Mondelēz into the cereal category.

“Here in North America, as well as around the world, we have a long history of partnering with best-in-class companies to create licensed products across our family of brands,” she added. “Ice cream is another category where you’ve likely seen co-branding.”

Mondelēz reported several years of revenue decline until Q3 2017, during which its organic net revenue grew by 2.8%, while its core brands, including Oreo and Cadbury, grew 3.8%.

Fontes said Mondelēz is not trying to “revive” the cereal category, “but instead giving consumers a new way to enjoy our iconic brands.”

According to Mintel data, US sales of hot and cold cereals have declined 9% since 2012 to an estimated $10.5bn in 2017.