Mondelēz taps 'potential' in UK biscuits market with Cadbury cookies

Cadbury Crunchy Melts are chocolate chip cookies with a soft center that can be eaten cold or heated in a microwave.

The biscuits will be available in 156 g multipacks in three flavor variants - chocolate center, double indulgence and soft cookie center - retailing for £1.89 ($2.43).

Penetrating special treat segment​

Mondelēz said: “The launch aims to grow penetration of the special treat segment [that] will, in turn, drive incremental sales for the biscuits category.​

“Our vision for Cadbury biscuits is to bring more moments of joy for biscuits lovers across Britain,”​ added Chiara Missio, marketing manager of Mondelēz’s Treat Biscuits division.

“​Cadbury Roundie​​​ was our first step towards this and has already delivered £2.1m after just 10 weeks in the market (according to Nielsen data, ending July 15, 2017).​

Misso said sales of traditional everyday biscuits have been declining as shoppers are seeking more premium experiences in the treat segment.

"We believe this launch will be a hit with consumers.”​

Cadbury Crunch Melts will be supported by a television campaign and in-store activity.

Biscuits: key to convenience sector​

Susan Nash, trade communications manager at Mondelēz, said the biscuit category is key for the convenience sector as it helps drive sales.

The category, which comprises three main sectors including sweet, healthy, and savory, is currently worth £2.3bn ($2.96bn) in the UK, she said.

“Sweet [biscuits] holds the lion’s share of the biscuit market, worth £1.4bn ($1.8bn), while the savory biscuit category, excluding crisp breads and crackers, has seen over 20% growth over the past two years,”​ she added.

“Despite being a relatively recent development, healthy biscuits continue to hold their own in the market, with a value of £485m ($624m).​

“At Mondelēz, we believe there is a huge potential for the biscuit category in the UK… We are investing heavily in the category, where we are now the UK’s number two branded supplier,”​ Nash said.

Mondelēz also produces Oreo, Barny and belVita in addition to Cadbury Roundie and Crunchy Melts in the UK.

Oreo was worth £44.8m in the UK, with a growth rate of 33.4% year-on-year, according to Nielsen data ending August 6, 2016. The brand is also the top growth contributor to sweet biscuits, having added £11.2m to the category in the past 12 months with a repeat rate of 51.3%.

belVita holds the top spot of the healthy biscuit category in the UK, as well as the second biggest brand in the country, according to Nielsen, ending January 28, 2017. The brand is worth £79m, growing at 11% year-over-year.

Euromonitor data showed the top five sweet biscuit brands in the UK McVitie’s (pladis), belVita (Mondelēz), Cadbury, Oreo, and Maryland (Burton’s Foods).