Mondelēz Introduces $1 Billion Chips Ahoy! Brand to the Gluten-Free Market

Mondelēz has launched its $1 billion Chips Ahoy! brand into the gluten-free market. This strategic move addresses the increasing consumer demand for gluten-free options, expanding the brand's reach and accessibility to those with dietary restrictions.

The snacking behemoth also offers Oreos free from wheat protein, catering to the 25% of Americans who follow a gluten-free diet.

‍Dive Brief:

• Mondelēz International introduces its inaugural gluten-free Chips Ahoy! cookie this month.
• The company underwent an extensive process, developing over 40 recipes, investing 3,000 hours before finalizing the version now available in stores.
• Chips Ahoy! has become a significant part of Mondelēz's success, particularly appealing to younger consumers and benefiting from the growing trend of snacking across demographics.
• Despite its popularity, Chips Ahoy! faces market challenges, especially from private-label alternatives, as consumers, particularly those with lower incomes, become more price-conscious.

Dive Insight:

The latest addition to Mondelēz's lineup, the gluten-free cookie, follows closely on the heels of a recent recipe update for Chips Ahoy! which saw an increase in cacao content and Madagascar vanilla extract concentration.

According to a company executive interviewed by Food Dive in 2023, sales for the 61-year-old brand were experiencing double-digit growth annually, predominantly driven by teenagers.

However, recognizing that approximately 25% of Americans adhere to a gluten-free diet as reported by the University of Nebraska-Lincoln, Mondelēz aims to tap into this segment by introducing a gluten-free version of Chips Ahoy!.

Jainette Quinones, the brand manager for Chips Ahoy! innovation, expressed confidence in the innovation team's success, asserting that the new Chips Ahoy! Gluten-Free cookie is not only delicious but also inclusive for all consumers.

Mondelēz's introduction of Chips Ahoy! into the gluten-free cookie category follows its initial foray in 2021 with Oreo Gluten Free Chocolate Sandwich cookies.

The Oreo gluten-free range has expanded to encompass three flavors.

Statista projects that by 2032, the gluten-free foods market will reach $14 billion, more than doubling its value from 2022.

Given this upward trend, it's understandable why companies like Mondelēz are expanding their offerings to include more gluten-free versions of their popular products.

Source: fooddive‍