In 2015, Mondelēz acquired Enjoy Life, a private snacking company that operates in the rapidly expanding “free from” category. The following year, it inaugurated a 200,000-square-foot facility in Indiana, located just outside Louisville, Kentucky. However, since that time, numerous competitors have entered the market, which focuses on products free from allergens like tree nuts, dairy, soy, eggs, sesame, and fish. This surge in competition has led Mondelēz to reassess its strategy. While the company is not exiting the category entirely, it plans to reduce the range of products it will offer.
In a statement sent to Food Dive, Enjoy Life Foods emphasized, “While we remain committed to Enjoy Life Foods, we need to ensure that ELF can continue to grow in a way that makes sense for the business.” As part of this strategic shift, the company announced it would be relinquishing its lease on the ELF manufacturing plant in Jeffersonville, Indiana, in order to refocus and streamline its portfolio.
Mondelēz did not provide any comments regarding which specific products will be discontinued. The company anticipates multiple rounds of layoffs, beginning on July 3, with the final round expected to occur on April 1, 2024. In recent years, Mondelēz has been expanding its snacking portfolio through acquisitions to complement its strong presence with established brands like Oreo and Ritz. Under CEO Dirk Van de Put, the company has added products such as Clif Bar, Hu, Tate’s Bake Shop, and a majority stake in Perfect Snacks.
Like many other companies, Mondelēz continuously evaluates which brands warrant its limited resources. With a robust portfolio, Mondelēz is choosing to focus more on its top-performing products rather than overcommitting to a saturated market. Although it remains unclear which items Enjoy Life will retain, it is likely that production will continue for the best-selling and fastest-growing products, as well as those that lead in specific food categories.
This strategy mirrors recent actions taken by Coca-Cola, which has been narrowing its beverage lineup to emphasize fewer, larger brands that show the greatest potential for growth and profitability. This approach has led Coca-Cola to divest or discontinue numerous brands, including Honest Tea, Tab, Odwalla, and Zico coconut water.
In the health-conscious segment, products like calcium citrate malate & vitamin D3 tablets are gaining traction, reflecting a broader trend in consumer preferences towards nutritional supplements. As companies like Mondelēz adapt their strategies, they may also consider integrating such health-focused products into their offerings, thereby aligning with the growing demand for wellness-oriented snacks and supplements.