Heat-resistant chocolate within reach, Oreo maker says
JOHANNESBURG, June 6 (Reuters) - Snacks company Mondelez
International Inc is close to introducing
heat-resistant chocolate it can sell at market stalls in Africa
and some of the world's hottest places, a senior executive said
on Thursday.
The maker of Cadbury chocolate and Oreo cookies has spent at
least ten years on research and is close to introducing the new
snacks to consumers, according to Lawrence MacDougall, the
company's president for Eastern Europe, Middle East and Africa
(EEMEA), although he declined to give a specific date for the
roll-out.
He gave no details on the content of the chocolate, how it
tasted or what it would be called but said that it could solve
the problems Mondelez and other snack producers face in
sub-Saharan Africa, where many consumers shop in outdoor markets
and food can be left for hours in the blazing heat.
"It can withstand 40 degrees and not turn to liquid,"
MacDougall told Reuters in an interview.
"We launched the patent last year. It's in development now.
We're looking at commercialising it pretty soon. It will be for
where we are challenged on climate and retail environments."
Although supermarket chains like South Africa's Massmart
and Kenya's Uchumi are expanding in Africa,
there are still relatively few trading environments where
products like chocolate can be kept cool, MacDougall said.
"You go to an open market in Lagos, you don't find many cool
places there," he said. "As supermarkets expand it will make it
easier for us, but at the moment we want to move fast."
Faced with maturing markets in the United States and Europe,
Mondelez is betting on emerging economies to drive its growth.
Although home to a billion people, two-thirds of whom are
under 35, Africa accounted for just 26 percent of Mondelez's
EEMEA revenue in 2012 - or just short of $1 billion.
The company aims to make its products affordable to
low-income consumers, for example by selling Oreos in packs of
two rather than 12.
It also sells single sticks of gum in countries like Egypt
and Morocco, which it plans to introduce into other markets.
Mondelez's chief executive said last month it expects to
increase investment in emerging markets by $100 million this
year and by up to $300 million in 2015.
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