CHICAGO — Mondelez International, Inc. has placed its gum business under strategic review. The company intends to return the business back to pre-COVID levels and then decide its future.
Mondelez’s gum brands were struggling before the pandemic, but COVID-19 has been particularly hard on the category. Nationwide stay-at-home orders limited on-the-go consumption opportunities, a primary sales channel.
“… The No. 1 priority we have at this point in time is to fix the business and allowing the business to return back close to 2019 levels,” said Luca Zaramella, chief financial officer, during a June 2 presentation at the virtual Sanford C. Bernstein Strategic Decisions Conference. “It is 5% of total revenue from a profit standpoint given the reduction in size that we have faced in 2020.
“But as we said, we have to fix the business and then potentially assess whether there are other avenues for us to create more value for…