Mondelez International Inc.is launching a holiday Oreo website which will sell tins of Oreos directly to consumers. The new website will be launched on December 12.
In 2015, Mondelez created a dedicated e-commerce team with a goal of generating $1 billion in revenue by 2020. The move is Mondelez’s way of adapting to consumers who are shifting away from traditional store buying and switching to purchasing snacks and chocolates online.
Significantly, the Oreo website marks Mondelez International’s foray into the supply chain and shipping logistics side of the business. The company has usually relied on traditional brick-and-mortar retailers and e-tailers like Amazon.com.
According to a Bloomberg Report: Big food companies, which have dominated the shelves at brick-and-mortar stores for decades, have had mixed results selling products directly in recent years as online retail slowly takes hold in the grocery industry.
With Amazon.com making a headway into the grocery business and big food companies like Mondolez International seeing growth only from natural and organic products in recent years, directly connecting with younger consumers – who are comfortable purchasing online – makes sense.
However, according to the Bloomberg report: despite the fact that online food sales are predicted to grow to $70 billion by 2021, analysts feel stand alone websites for packaged food and beverage companies may not be the answer. For one, it would prove to be very expensive. For another, competing with a giant like Amazon which has logistics down to a pat may be tough. Finally, most consumers would rather shop on one site than troll tens of them in search of various products.