Welcome to Xena Insider.
Today we examine how the maker of Oreo, Ritz, and Cadbury is undergoing a sweeping digital transformation—one that includes ambitious eCommerce targets, a major IT overhaul, and even rumors of a blockbuster acquisition. Read on for insights into Mondelēz’s strategy, financials, and future plans.
eCommerce Ambitions and Performance
Mondelēz has set a bold target: 20% of its sales from digital channels by 2030. According to CEO Dirk Van de Put, the company’s eCommerce sales grew by double digits in 2024, signaling real progress toward its digital ambitions. This growth comes on the heels of more than $1 billion invested to become a leader in digital snacking.
Direct-to-Consumer Strength
About 15% of Mondelēz’s digital sales already come from direct-to-consumer channels, a figure the company plans to grow through new platforms and omnichannel capabilities.Strategic Focus
The digital roadmap focuses on three pillars:Consumer Engagement – Personalizing brand interactions to drive loyalty.
Revenue Management & Sales Execution – Using advanced tools for better pricing, assortment, and in-store execution.
Operational Efficiency – Improving the end-to-end supply chain through digital tools.
Financial Highlights and Market Dynamics
Even with a strong digital push, Mondelēz hasn’t been immune to market challenges. CFO Luca Zaramella notes the volatility in global cocoa prices, and the company anticipates that inflation could shave about 10% off adjusted earnings per share in 2025.
Despite global volatility in cocoa prices, Mondelēz delivered solid results in 2024:
Q4 Revenue rose 3.1% to $9.6 billion.
Full-Year Revenue up 1.2% to $36.4 billion.
Still, confidence remains high. Mondelēz maintains that its diverse brand portfolio—which includes Oreo, Ritz, and Cadbury—can weather inflationary periods while continuing to innovate. This balanced outlook is also why Mondelēz wants to stay at the forefront of the ERP upgrade wave, tackling it before costly support cliffs hit. The idea is clear: smarter use of technology, stronger operational efficiency, and tight cost control will help mitigate market pressures.
Major Digital Overhaul: Inside the $1.2 Billion Transformation
Mondelēz’s commitment to digital isn’t just about eCommerce. It’s also undergoing a multiyear, $1.2 billion tech transformation designed to modernize operations, boost market share, and position the snack maker at the forefront of innovation.
18 Months of Preparation
According to Kostas Georgakopoulos, CTO and CISO, Mondelēz spent 18 months aligning its board of directors, regional CEOs, and technology teams before launching into large-scale initiatives like:
Data Center Exits
The company is exiting four data centers, consolidating workloads, and migrating resources for greater agility and cost savings.Generative AI Exploration
While Mondelēz is already leveraging AI for tasks like shell scripting (via Amazon Q) with a 20% productivity boost, fuller integration into the ERP system is roughly “12 to 18 months away.”
Choosing AWS
After evaluating all major cloud providers, Mondelēz selected AWS as its strategic partner for reasons including cost efficiency and faster access to features. A 35-person internal engineering team is spearheading migrations of hundreds of workloads from Azure, aided by AWS’s capabilities.
Potential Acquisition of Hershey
Mondelēz is reportedly exploring an acquisition of Hershey—a move that would create a combined snack powerhouse with nearly $50 billion in total sales. While the chocolate icon previously rejected a $23 billion bid from Mondelēz in 2016, a renewed offer now could reshape the competitive landscape in confections.
Strategic Rationale
Hershey’s well-known chocolate portfolio could complement Mondelēz’s existing chocolate (Cadbury) and biscuit (Oreo, Ritz) segments, strengthening its foothold in North America.Market Impact
Both companies have flagged higher cocoa costs, but consolidation could bring economies of scale, potentially mitigating inflationary pressures over time.
Key Takeaways
Digital Expansion: Achieving 20% of sales from digital by 2030.
Technology Overhaul: A $1.2B transformation, including a major ERP upgrade and AI integration.
Financial Strength: Solid top-line growth in 2024, with cautious optimism for 2025.
Acquisition Possibility: Renewed Hershey acquisition talks could reshape the snack industry.
The Baby Banana Toothbrush WAR Exposed!
Why Online Sellers Need Xena?
At XENA Intelligence, we believe AI should work for you—not the other way around. Whether you're a new seller or a seasoned entrepreneur, our AI-driven tools will help you achieve more with less effort and even lesser worries.
One example is visibility on Amazon. It can feel like an uphill battle, but doesn’t have to be. We’ve built Xena Foresight—an AI-powered tool that takes the guesswork out of Amazon listing optimization. Our technology is designed to boost your product visibility, clicks, and conversions with data-driven precision.
Get Your Listings Noticed: Our AI driven tool analyzes market trends, competitors, and Amazon’s algorithm to craft high-converting product listings.
Free Consultation: Speak with our expert to discover how we can tailor our solutions to your needs.
ECOMMERCE ESSENTIALS
From misleading SEO strategies to outdated selling tips, the e-commerce world has its fair share of pitfalls. Here’s what’s really worth your attention:
Xena Blog: Visit our blog for straightforward advice on improving your e-commerce strategy.
Podcast: Tune into "Beyond the Buy Box" for conversations with industry leaders who share practical tips and insights.
YouTube: Check out our YouTube channel for easy-to-follow guides on growing your online business. Don’t forget to subscribe!
Written by Akhil Suresh Nair, the founder & CEO of Xena Intelligence - the AI tech for eCommerce brands