TL;DR
Chips Ahoy!, the 60-year-old chocolate chip cookie brand, is experiencing remarkable growth with Gen Z consumers, making it a must-have item for small and independent retailers. Its popularity among young individuals and the rising demand for snacks have boosted sales, with teens being the biggest contributors to its rapid growth. To reach this audience, Mondelēz, the brand’s parent company, has shifted its marketing strategy to focus on social media platforms like TikTok, Twitch, and YouTube. In addition to the classic cookie, Mondelēz has introduced various flavors and formats, providing more options for consumers and increasing sales potential.
Chips Ahoy!, a brand of chocolate chip cookies that has been around for 60 years, is capturing the attention of young shoppers and becoming a hot item for small and independent retailers. Owned by Mondelēz International, the cookie brand is resonating with Gen Z consumers who crave a sweet indulgence. This popularity among young individuals, combined with a growing interest in snacks among the broader population, has made Chips Ahoy! one of the fastest-growing brands under Mondelēz.
Sales for this $1 billion brand have been increasing at a rate of “double digits” every year, with teenagers being the primary drivers of this growth, as revealed by Tanya Berman, senior vice president of Mondelēz’s biscuit business. The company aims to sustain this remarkable growth and build on it further by expanding the core business, introducing new flavors, and establishing partnerships.
Although Chips Ahoy! has been a long-standing favorite, Mondelēz reevaluated its marketing approach in 2019 during the early days of the COVID-19 pandemic. They recognized the potential to better engage consumers and adapted their strategy accordingly. The brand shifted its focus from traditional television ads to social media platforms like TikTok, Twitch, and YouTube, where Gen Z consumers spend a significant amount of time. This move has made Chips Ahoy! feel more modern and relevant to this audience, who now sees it as part of their everyday lives.
While the original Chips Ahoy! cookie continues to be the top seller, Mondelēz has expanded its offerings to include different flavors and formats, such as Thins, Red Velvet, S’mores, Minis, and cookies loaded with Hershey’s chocolate or Reese’s. These extensions cater to consumers looking for something new or specific to a particular season.
Small and independent retailers can take advantage of this trend by ensuring they stock the classic Chips Ahoy! cookie and its various flavors to offer a wide selection to their customers. Additionally, retailers can promote the cookie for creative uses, such as using it as an ice cream sandwich topping or partnering with it to create a frozen novelty treat.
For retailers, it’s essential to stay attuned to the preferences of Gen Z consumers and keep the brand fresh and exciting by introducing new flavors and textures. By staying connected to the latest trends and leveraging social media to reach younger shoppers, small retailers can position Chips Ahoy! as a go-to snack for their customers, attracting both Gen Z and their parents.
