Mondelez to seize more opportunities in China

With China creating more favorable conditions for multinational corporations to attract foreign investment, Mondelez International Inc, the United States snack food manufacturer, plans to seize more opportunities from the country's consumption upgrade and innovation strength.

"China is a land of opportunity for Mondelez, and I deeply cherish the bond we share with this market. If someone asks me where the best place to grow a business is, China is my only answer for this question," said Joost Vlaanderen, president of Mondelez China.

Amid growing investment restrictions from the US and geopolitical tensions in other parts of the world, China issued an action plan earlier this month to stabilize foreign investment in 2025.

The country will advance the institutional reform of the foreign investment promotion system as required, devise an annual implementation plan for building the brand of "Invest in China", and meticulously design and implement a series of "Invest in China" events.

After building an intelligent warehousing center in Beijing to support its digital and green development in February 2024, the Chicago-headquartered Mondelez acquired 72 percent of a stake in Evirth (Shanghai) Industrial Co Ltd, a Shanghai-based manufacturer of frozen cakes and pastry products late last year.

Vlaanderen said that Chinese consumers are increasingly emphasizing product quality, especially among younger consumer groups. Their pursuit of high quality is not only reflected in raw materials but also their demand for taste and diverse choices.

"Frozen baked goods play a crucial role in Mondelez's global strategy and this category remains a significant opportunity in the Chinese market," he said, adding that the company will leverage its well-established supply chain, tailored products and scenario-based offerings to further expand its market share in China in the coming year.

Mondelez — the maker of Oreo cookies and Stride gum — saw its global sales revenue grow by 1.18 percent year-on-year to $36.44 billion in 2024, according to its latest financial report.

Guo Xin, a marketing professor at Beijing Technology and Business University, said that China's snack food market will continue to expand, driven by urbanization, rising health awareness and an increasingly diverse range of product offerings.

"The competitive landscape will likely favor companies that enhance craftsmanship and ingredient quality while incorporating local flavors and innovative formats to boost the health benefits of their products," she said.