CHICAGO – While other consumer packaged goods companies have shifted away from direct-store delivery (DSD), Mondelez International is taking advantage of its operation’s benefits and integrating it further into the business.

“The step change we’ve made in the supply chain is better connecting our selling organization with DSD in with our logistics arm of the supply chain,” said Henry Glendon Walter, president of North America, during a June 16 presentation at the Evercore ISI Virtual Consumer & Retail Summit. “So, how can we improve service at the same time, improve efficiency, (and) reduce costs to be able to invest back in our customers and our brands? And I'm very pleased with that progress we’re seeing.”

Mondelez International began to see market share advances at the end of 2019 and the trend accelerated significantly when a majority of US consumers came under stay-at-home orders due to the coronavirus. Using a data-centric approach to evaluating consumer behaviors the company was able to respond to changing market conditions and implement programs to better serve customers and consumers.

“What you hear us talk about our PPA, our price pack architecture, so not only are we providing value in larger pack sizes like our family size, but we’re also investing in multipacks,” Mr. Walter said. “So, if you’re a caregiver or a mom or a dad and you’ve got kids at home who are going to school, buying a large-sized multipack for either single serving at home or for on-the-go in a world post COVID is important.

“So, we’re also seeing that penetration, the trial and repeat, on the investment we’re making in the types and sizes that again is grounded in really understanding the consumer and the shopper and what drives snacking behavior.”

Mr. Walter added that the company has seen “100% growth this year” in consumer e-commerce use, whether it’s pure play or click-and-collect.

“We’re also seeing that the strength of our DSD not only helps in stock condition for normal shoppers that we would all have been doing before COVID, but it’s really helped us with in-stock condition to help those players as they’re picking orders in stores for their omnichannel business,” he said. “So, as a consequence, we’re seeing strong growth, we’re seeing market share growth. We picked up nearly three share points of growth overall in the portfolio. And I feel like we’ve got strength-on-strength and a lot of momentum as we collaborate with our customers as we go forward with this.”

Mr. Walter said Mondelez’s management team sees a long runway of “predictable profitable growth” in its core products by investing in its core brands, better leveraging the DSD system and expanding in retail channels. Channels of opportunity for the DSD system include premium and well-being, he said.