Cadbury’s owner Mondelez plots expansion route into US

Mondelez International, the maker of Cadbury chocolates, has outlined its plans to expand in the US, a week after abandoning its pursuit of US sweetmaker Hershey.

Mondelez, the second-largest confectionary company in the world, said it would bring to the US its Milka Oreo chocolate bars that pairs Oreo cookies with Milka.

The Milka Oreo bars, which are available in more than 20 countries, are targeted at the mainstream segment of the $14bn (€12.5bn) US chocolate market.

In the premium segment, Mondelez is expanding its Green & Blacks products, which contain no artificial colours, flavours, or preservatives.

Mondelez said last month that it was no longer pursuing the acquisition of Hershey, the number five confectionary company in the world, two months after the company turned down its $23bn cash-and-stock bid.

The merger of Mondelez with Hershey, which makes Hershey’s Kisses and Reese’s Peanut Butter Cups, would have expanded the former’s limited US footprint and created the world’s largest confectioner. Instead, now Mondelez has to chalk out its own course.

Mondelez also said yesterday it was strengthening its sales and distribution operations, enhancing in-store execution, and chalking out better routes to market, especially in emerging markets.

The company said it was building up its e-commerce snacks business with the aim of generating at least $1bn in revenue by 2020.

Analysts expect Mondelez to generate total revenue of about $30bn in 2020.