India Spotlight Index 2020

Mondelez India

Product Profile Categories
Concentrates; Confectionery; Other Hot Drinks; Sweet Biscuits, Snack Bars and Fruit Snacks
PDF
Rank 6 / Score 4
Rank 4 (2016)
Product Profile
Rank 16 / Score 1.6

Company Profile

Rank 6

Score 4

(%) Figure in brackets is the weighting of the category. All category, commitment, performance and disclosure scores are out of 10

Commitment

Performance

Disclosure

The bar graph to the left shows company performance across the seven Index categories, which are key topic areas of assessment, and scores are shown for each category. The circles above provide an alternate view on the company’s overall results, showing the score per indicator type.

Main areas
of strength

  • Mondelez India’s growth strategy considers aspects of nutrition and health. Since the previous India Index in 2016, the company has introduced healthier options of its Bournvita biscuits, and has developed micronutrient-fortified products. In line with the Food Safety and Standards Authority of India (FSSAI) Eat Right Movement, the company has an approach to reformulate existing products and to introduce new products with no added sugar or reduced sugar levels, such as its recently released Cadbury Dairy Milk chocolate product with 30% less sugar. It also focuses on portion control by offering many of its chocolate products in calorie-limited single serving portions.
  • The company’s Nutrition Profiling System (NPS), known as Better Choice, is used to guide product innovation and reformulation. Mondelez India continues to invest in product development as evidenced by its newly inaugurated global Technical Center in Thane, Maharashtra in 2019. To further strengthen its performance, the company could make its NPS publicly available and benchmark it against internationally recognized systems such as the Health Star Rating (HSR).
  • The company is committed to providing nutrition information on product labels, including for saturated fat, sodium and total sugars, and stating the number of portions or servings per package. Mondelez India reports that calorie information has been placed on the front-of-pack for all products since 2016.
  • Mondelez India has a comprehensive policy on marketing to children. It is one of two companies in the Index that commit to not advertise any products directly to children under 12, and is the only company that commits not to advertise in primary and secondary schools in India.
  • The company’s corporate social responsibility program, Shubh Aarambh, applies an evidence-based approach to nutrition/health education. The program is implemented by non-governmental organizations and focuses on children and mothers that are at risk or experiencing high levels of malnutrition. The program excludes product or brand-level branding and helps to disseminate elements of FSSAI’s Safe and Nutritious Food Program.

Priority areas
for improvement

  • Mondelez India ranks sixth overall in the India Index 2020 with a score of 4.0 out of 10.
  • The company ranks sixteenth in the Product Profile with a score of 1.6 out of 10. This outcome can be partially explained by the predominance of its Confectionery product-related sales. The Product Profile estimates that 1% of the 2018 total sales were derived from healthy products. Further, Mondelez India does not perform well when compared to its peers in the same product categories for product healthiness. The company is encouraged to continue to accelerate its efforts to improve the overall nutrition quality of its product portfolio, also relative to its competitors within the same product categories, and to focus on selling more of its healthier options.
  • Mondelez India should consider addressing its nutrition strategies in a formal commercial policy and is encouraged to publish India-specific annual reports. By disclosing more India-specific information, the company could help stakeholders assess progress, particularly in relation to supporting the Government’s strategies to combat all forms of malnutrition in India.
  • Despite having global nutrition-related commitments, for example, to grow well-being brands at a faster rate, the company does not provide India-specific evidence that healthy products have contributed positively to its financial performance. The company should adopt SMART – Specific, Measurable, Achievable, Relevant and Time-bound – targets and make progress reports publicly available, particular in terms of sugar reduction as most of its Indian portfolio consists of Confectionery products.
  • Mondelez India can further improve its responsible marketing to children by expanding its policy to address marketing activities that go beyond advertising, for example influencer marketing. The company is also encouraged to explore options to include children above the age of 12 in the commitment.
  • In addition, the company is encouraged to provide nutrition information for all products on its website so Indian consumers can easily access this data. The company is also encouraged to implement an interpretive front-of-pack labeling system as soon as possible that aligns with other companies or industry associations, and is developed in partnership with the Government and other stakeholders.

Category Analysis

Governance

Governance

Products

Accessibility

Marketing

Lifestyles

Labeling

Engagement

Nutrition

A1
Nutrition strategy
A2
Nutrition management
A3
Reporting quality
B1
Product Profile
B2
Product formulation
B3
Defining healthy products
C1
Product pricing
C2
Product distribution
D1
Marketing policy
D2
Marketing to children
D3
Auditing and compliance
E1
Employee health
E2
Breastfeeding support
E3
Consumer health
F1
Product labeling
F2
Claims
G1
Influencing policymakers
G2
Stakeholder engagement

All category, criteria, commitment, performance and disclosure scores are out of 10

Commitment

Performance

Disclosure

The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
For this category performance indicators were not included. The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Product Profile

16
Rank 16 / Score 1.6

Portfolio-level Results

Average HSR
score products
(sales-weighted)
Healthy products
(HSR)
Products suitable to
market to children
(WHO SEAR)
Range of total
India F&B sales
included
% products
healthy
% sales
healthy
No. products
assessed
% products
suitable
% sales
suitable
No. products
assessed
0.5 1% 1% 101 0% 0% 101 90-100%
  • A total of 101 products from across four categories, representing 90-100% of Mondelez India’s estimated 2018 sales, were included in the Product Profile. Only 1% of the company’s products were found to meet the HSR healthy threshold and the company was estimated to derive 1% of its 2018 sales from these healthy products.
  • The company achieves an unweighted mean HSR of 0.6 out of 5. After sales-weighting, the company’s mean HSR drops to 0.5 out of 5, resulting in a mean healthiness score of 1.1 out of 10.
  • A total of 101 products were assessed to determine their suitability to be marketed to children according to the World Health Organization (WHO) South-East Asia Region (SEAR) nutrient profile model. None of the company’s products were found to meet the criteria.

Product Category Results

Category Concentrates Confectionery Other Hot Drinks Sweet Biscuits, Snack Bars and Fruit Snacks
Mean HSR 0.5 0.5 0.8 0.9
% products
healthy
0 0 8 0
% products
suitable to
market to children
0 0 0 0
  • Mondelez India’s mean HSR is highest for products in the Sweet Biscuits, Snack Bars and Fruit Snacks category with a score of 0.9 out of 5. The company’s products in the Concentrates and Confectionery categories achieve the lowest HSR of 0.5 out of 5.
  • One out of 13 products in the Other Hot Drinks category was found to meet the HSR healthy threshold.

Relative nutritional quality of Mondelez India's products by category compared to competitors

Mean HSR Concentrates Confectionery Sweet Biscuits, Snack Bars and Fruit Snacks
Mondelez India 0.5 0.5 0.9
Amul GCMMF 0.6
Britannia Industries 1.4
Hindustan Unilever 1.5
ITC 1.1 1.3
Nestlé India 0.7
Parle Products 1.1 1.5
  • When compared to the other companies that sell products in the Confectionery category (as part of their top-selling categories) in India, Mondelez India’s Confectionery products achieve the lowest mean HSR (0.5 out of 5). The company therefore ranks fifth out of five in this category. In the Concentrates category, the company ranks second out of two with a score of 0.5 out of 5. In the Sweet Biscuits, Snack Bars and Fruit Snacks category the company ranks fourth out of five.
  • Competing with other companies in three categories, Mondelez India achieves a relative category score of 2.0 out of 10 based on its ranking within those categories.

Conclusion

  • Mondelez India’s mean healthiness score of 1.1 and relative category score of 2.0 result in an overall Product Profile score of 1.6 out of 10, which means the company ranks sixteenth.
  • The company is encouraged to continue with its product innovation and product reformulation strategies towards the marketing of healthy products. Mondelez India should adopt India-specific goals and targets to accelerate the company’s sales of healthier options.
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