Cookiemaker announces plans to roll into smaller cities

According to Yu, the cookie market in major cities had a 46 percent household penetration rate, recording year-on-year growth of 10 percent, while those in tier 3 cities was only 31 percent with an annual growth rate of 14 percent.

Cookies available in county-level cities totaled only 23 percent but had a higher growth rate of 17 percent.

"This data suggest the high-growth prospect for lower-tier cities in China for total biscuits," said Yu.

Last year, the butter cookie segment continued to be the star performer in the market, driven by high-end Danish brands Kjeldsens and Danisa.

Wang said a mixed offering, keeping up with consumer tastes and product innovation is considered key to capturing the attention of the fast-changing Chinese market.

"New packaging or new product launches have been the motivation for our market progress," said Wang.

The company has observed subtle differences in terms of cookie sweetness and has made changes accordingly.

"Oreos in China are not as sweet as those sold in the United States," Wang said. A green tea flavor was also especially formulated for Chinese consumers.

Last June, the company expanded its production capacity by launching a factory in Suzhou for a total of eight plants in China.

The former Kraft Foods conglomerate was split in 2012 into two independent companies, including Mondelez International and the North American grocery business, as China is now the second-largest market for Oreo and Chips Ahoy cookies, after the US.

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