Food and Beverage Business
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Mondelez Continues Pricing Strategy as Cocoa Inflation Persists

Mondelez Continues Pricing Strategy as Cocoa Inflation Persists Mondelez International Food and Beverage Business

Mondelez International, a branded chocolate and biscuits maker, has signaled that more price hikes are on the horizon following last year’s double-digit pricing. Despite this, consumer volumes have remained relatively stable, with prioritized snacking around favored brands. The company reported a 14.7% rise in organic net sales, amounting to over $36bn in the 2023 fiscal year.

In both North America and Europe, pricing has been set for the new year, with talks still ongoing with some retailers in Europe. There might be some backlash there, as previously experienced in 2023. Yet, the company’s chairman and CEO, Dirk Van de Put, indicated that consumer elasticity is still within historical norms.

Europe experienced a strong price increase in chocolate last year, resulting in a limited impact on volumes. Sales in the region grew 14.5% in 2023, while North America saw a 9.5% increase. However, in the final quarter, volume/mix was a negative 0.4%, as pricing rose 10.2 percentage points.

Mondelez is focused on pricing away cost inflation while seeking to offset the impact on input costs. The company revealed a guidance of net organic revenue growth of 3-5% and adjusted EPS in the high single-digit area in constant currency. Finance chief Luca Zaramella expects pricing in certain markets to be higher than historical levels.

Throughout this dynamic environment, the company is closely tracking and planning around near-term themes, including continuing inflation, shifting consumer habits, and geopolitical challenges.

 

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