Mondelēz International is expanding the Chips Ahoy! brand into new categories like cakes and pastries, aiming to transform the 62-year-old brand into a platform centered around its iconic chocolate chip cookie. “We’re taking a bigger and bolder approach with our innovations and activations than we ever have before,” stated Sabrina Sierant, senior director of Chips Ahoy!, in an interview. “Chips Ahoy! should be the ultimate chocolate chip treat.”
With origins dating back to 1963, Chips Ahoy! is the second-largest cookie brand in the U.S., following Oreo, which is also owned by Mondelēz. Although 95% of consumers recognize the brand, it is present in only 30% of U.S. households, highlighting significant growth potential through product innovation and expansion into additional food categories.
In January, Mondelēz introduced Baked Bites, square, chewy treats that represent the brand’s first major entry into the $97 billion cakes and pastries market, identified as a key growth area. Prior to this, Chips Ahoy! had a limited presence in the in-store bakery segment, primarily offering muffins.
For years, Mondelēz has supported Chips Ahoy! with various promotions and displays. In 2019, during the early days of the COVID-19 pandemic, the company evaluated the brand’s performance and recognized the potential for increased consumer outreach. Recently, Mondelēz has seen growth from its mini cookie varieties and has launched innovations such as larger cookies, gluten-free options, and new flavors like chocolate caramel, red velvet, and s’mores. Last year, the classic cookie recipe was revamped to include higher cacao chocolate chips and Madagascar vanilla extract, marking the most significant update for the $1 billion brand in nearly a decade.
These innovations are beginning to yield positive results. In the 26 weeks ending March 29, 2025, Chips Ahoy! sales increased by 2.3%, outperforming the broader biscuit category, which saw a decline of 0.3%. Additionally, the brand added approximately 2 million households during this period, with a quarter of that growth attributed to new innovations. “We’ve entered a new chapter with all of this innovation,” Sierant remarked. “The brand still has plenty of room for growth.”
To seize this opportunity, Mondelēz is focusing on on-the-go snacking, a market gap that Baked Bites aims to fill. The company is also introducing more products priced under $3, as much of its previous portfolio was priced over $4, to attract budget-conscious consumers and align Chips Ahoy! more closely with typical snack spending. Furthermore, Mondelēz is increasing its launch of healthier options, including its gluten-free Chips Ahoy! that contain maxvita calcium, appealing to health-conscious consumers.
Sierant mentioned that Mondelēz is exploring additional extensions for Chips Ahoy! beyond cookies, although she did not disclose specifics. The Chicago-based company plans to initially focus on launching new pack sizes, expanding Baked Bites, and continuing cookie innovation, which generates the majority of the brand’s revenue. “We want to be cautious about expanding into too many platforms too quickly,” she noted. “We plan to continue extending beyond cookies, but I believe it will be done in phases.”