What Mondelez’s tie-up with Biscoff says about Cadbury’s NPD strategy

Some brand collaborations are destined for success. Take Biscoff and Cadbury, which last week revealed they had joined forces to launch co-branded chocolate products in the UK.

While specific formats are “still in the early stages of development” – and we will have to wait until early 2025 to see the results – a Biscoff-flavoured Dairy Milk sharing bar seems like a shoo-in.

One Stop Mount Nod owner Aman Uppal speculated in a social post on X that the partnership between Lotus Bakeries and Cadbury owner Mondelez might also see the launch of a “Grenade Lotus Biscoff bar”.

Regardless of what NPD Mondelez is planning, its partnership with Biscoff is bound to lure in shoppers – and it is symptomatic of a long-term sales strategy for Cadbury.

Cadbury is Britain’s top-selling fmcg brand, valued at £2.1bn last year [NIQ 52 w/e 31 December 2023]. To maintain its number-one spot, it has historically relied heavily on NPD to drive excitement.

How many Cadbury brand tie-ups? 

Over recent years, Cadbury launched White Creme Egg in late 2022, followed by Twirl Xtra (a longer version of Twirl) in February 2023. The latter raked in nearly £10m in its first 11 months, according to NIQ data.

Next came a Creme Egg sharing bar, which hit shelves in December; a duo of milkshakes in partnership with Müller, which launched in January; and Dairy Milk & More – a range of chunky, filled chocolate bars – which rolled into retailers in March.

The bigwigs at Mondelez are clearly hoping this steady stream of NPD will keep shoppers engaged and encourage them to part with their cash. However, it comes as Cadbury faces headwinds…

Record cocoa prices linked to adverse weather conditions have contributed to Cadbury putting up its prices as a “last resort”, according to Mondelez trade communications manager Susan Nash. The chocolate giant’s £200m gain was predominantly down to these higher prices; average price per unit rose by 17.8% as volume sales declined by 6%, according to NIQ.

Simultaneously, Cadbury has come under fire for continuing to trade in Russia. A collective of Ukrainian campaigners recently wrote to the King, urging him to revoke its royal warrant due to its “continued presence and financial support” in the country under Putin’s regime. In this challenging climate, a tie-up with trendy challenger Biscoff could help Cadbury claw back unit sales.

Lotus Bakeries’ speculoos biscuits aren’t new. They were launched almost a century ago in 1932 and have been served alongside hot beverages in UK foodservice for many decades. However, the launch of Lotus Biscoff spread in 2007, followed by owner Lotus Bakeries’ acquisition of Nakd and Trek owner Natural Balance Foods and Bear in 2015 have helped it track rapid growth in the UK in recent years.

Biscoff-flavoured food and drink

Value sales of the brand’s biscuits alone skyrocketed by 40.8% to £25.5m last year, with Lotus Biscoff selling an extra million kilograms of them through the tills [NIQ 52 w/e 9 September 2023].

The hashtag ‘#biscoff’ has been attached to 96.7k TikTok posts to date and the popularity of the brand has inspired official and unofficial spin-offs across a swathe of categories lately.

Propercorn, for instance, unveiled a Caramelised Biscuit popcorn variant in 2021. This was followed by Quaker Oats launching a Caramelised Biscuit porridge pot in 2023. Earlier this year, Lotus Bakeries stablemate Trek added a Biscoff-flavoured protein bar.

Lotus Bakeries has also previously teamed up with foodservice brands including McDonald’s, Krispy Kreme and Costa to launch branded spin-offs. However, wielding Cadbury’s brand power will help it establish itself as a major player in grocery.

Some might say it’s a perfect match.