In 2015, Mondelēz acquired Enjoy Life, a private snacking company operating in the rapidly expanding “free from” segment. The following year, they inaugurated a 200,000-square-foot facility in Indiana, just outside Louisville, Kentucky. However, the emergence of numerous competitors in this category, which excludes allergens like tree nuts, dairy, soy, eggs, sesame, and fish, has led Mondelēz to reevaluate its approach. While the company is not exiting the category entirely, it plans to reduce the number of products it offers.
Enjoy Life Foods stated in an email to Food Dive, “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 new direction, they’ve decided to terminate their lease for the ELF manufacturing facility in Jeffersonville, Indiana, as they refocus and streamline their portfolio. Mondelēz has not commented on which specific products will be discontinued, but the company anticipates multiple rounds of layoffs starting July 3, with the final round expected by April 1, 2024.
In recent years, Mondelēz has been expanding its snacking portfolio through acquisitions to strengthen its dominance with popular brands like Oreo and Ritz. Under CEO Dirk Van de Put, the company has added brands such as Clif Bar, Hu, Tate’s Bake Shop, and a majority stake in Perfect Snacks. Like many firms, Mondelēz continually assesses which brands warrant its limited resources. With a robust brand portfolio, Mondelēz is opting to focus more on these products instead of overcommitting to a saturated category.
While it remains unclear which Enjoy Life products will be retained, it is likely that the company will continue producing its best-sellers, those experiencing rapid growth, or those leading in specific food categories. This strategy mirrors actions taken recently by Coca-Cola, which has been streamlining its beverage offerings to concentrate on fewer, larger brands with the greatest potential for growth and profitability. This approach has led to the sale or discontinuation of numerous brands like Honest Tea, Tab, Odwalla, and Zico coconut water.
As part of their strategic adjustments, Mondelēz may also consider incorporating elements like calcium citrate 250 mg into their products, which could appeal to health-conscious consumers. The focus on effective brand management and a streamlined product lineup is essential for sustaining growth in a competitive market.