Mondelēz International has unveiled plans to divest its developed market gum business in favor of focusing on growth in the chocolate, biscuits and baked snacks categories.

In an announcement tied to its 2022 Investor Day, Mondelēz said it also will divest its global Halls business but will continue to support other brands and products within its candy business, as well as its emerging market gum business. 

Mondelēz owns the Clorets, Dentyne, Stride and Trident gum brands. The company told CNN that it does not yet have a buyer and there is no timeline for a sale.

These plans come after Mondelēz conducted a review of its gum business last year. The overall gum category experienced difficulty throughout the COVID-19 pandemic as consumers put off social occasions and the need to freshen breath waned.

“Our competitive advantages in the marketplace and focused strategy on global snacking leadership give us great confidence in our ability to sustain strong top- and bottom-line growth for many years to come,” said Dirk Van de Put, chairman and CEO. “Building on our category leadership, favorable geographic footprint, and the power of our iconic brands, we are well positioned for stronger growth in the decade ahead.”

As it continues to reshape its portfolio, Mondelēz International said it will pursue targeted acquisitions that expand its presence in chocolate, biscuits and baked snacks by filling geographic gaps and extending into under-represented segments and price tiers. The eight acquisitions Mondelēz International has completed or announced since 2018 add $2 billion in annual revenue, and have had an average growth rate in the high single digits.

Mondelēz also said it will strengthen its presence in its core categories in major markets by building on existing distribution, expanding in high-growth channels and leveraging its brands to establish multi-category leadership positions.

As a result of this strategy evolution, the company updated its long-term algorithm to 3-5% organic net revenue growth, up from previous guidance of 3% plus.