Mondelez International will make its first major foray into China’s tricky chocolate market in September, as it introduces its $2bn Milka brand at a time when rival and recent takeover target Hershey battles falling sales in the country.
The US company, which also owns Cadbury, will sell Milka at “slightly above” average chocolate prices in China, says Tim Cofer, Mondelez’s chief growth officer. He declines to give any sales targets.
Mr Cofer says he is confident of the $2.8bn market’s long-term promise, citing low penetration and Mondelez’s 30 years of experience selling other sweet treats and snacks in China. He also talks of creating gifting opportunities on top of existing ones and the growth of online sales, which Mondelez plans to exploit via a partnership with Alibaba.