Mondelez (MDLZ) Adapts to Market Challenges with Strong Portfolio and Price Sensitivity

Mondelez International, Inc. is adapting to a challenging environment with price-sensitive consumers and a mix of market signals. Despite these challenges, the company is leveraging its brand strength and portfolio resilience, with core categories such as chocolates and biscuits demonstrating resistance to economic downturns. Strategic collaborations and acquisitions have expanded Mondelez's presence and customer base. In emerging markets, solid consumer confidence and resilient categories have contributed to growth. The company anticipates organic net revenue growth within the upper range of 3-5% for 2024, while managing input cost inflation through pricing strategies.

Mondelez International, a global leader in the snacking industry, is adapting to a challenging market environment by focusing on its core strengths and strategic initiatives. The company, which includes iconic brands like Oreo, Cadbury, and Milka, is confident in its ability to sustain strong growth despite economic uncertainties and price-sensitive consumers.

According to a recent update from Mondelez, the company has long-term growth prospects and competitive advantages as a global snacking leader [1]. To accelerate growth and focus on its most attractive categories, Mondelez is evolving its long-term strategy. The company aims to generate 90% of its revenue from chocolate, biscuits, and baked snacks, which are historically durable and attractive categories with significant growth potential [1].

Mondelez's core categories, such as chocolates and biscuits, have demonstrated resilience during economic downturns. For instance, the chocolate category, which includes popular brands like Cadbury and Milka, is expected to continue growing globally, driven by increasing demand in emerging markets [2]. Similarly, the biscuits category, which includes Oreo and Ritz, is expected to grow at a steady pace due to its widespread appeal and growing demand for convenience foods [3].

Mondelez is also leveraging strategic collaborations and acquisitions to expand its presence and customer base. For instance, the company recently acquired a stake in a Chinese chocolate maker, giving it a stronger foothold in the Chinese market [4]. In emerging markets, Mondelez is benefiting from solid consumer confidence and resilient categories, which are contributing to growth [1].

Despite the challenges, Mondelez anticipates organic net revenue growth within the upper range of 3-5% for 2024 [1]. The company is managing input cost inflation through pricing strategies to maintain profitability.

In conclusion, Mondelez International is adapting to a challenging market environment by focusing on its core strengths and strategic initiatives. The company's strong brand portfolio and resilient categories, coupled with strategic collaborations and acquisitions, position it well for sustainable growth in the years ahead.

References:

[1] Mondelez International. (2022, May 10). Mondelez International Provides Update on Long-Term Growth Strategy. Retrieved from https://ir.mondelezinternational.com/news-releases/news-release-details/mondelez-international-provides-update-long-term-growth-strategy

[2] Euromonitor International. (2022). Chocolate Confectionery Global Market Size, Trends, and Forecast. Retrieved from https://www.euromonitor.com/chocolate-confectionery/report

[3] Grand View Research. (2021). Biscuits and Cookies Market Size, Share & Trends Analysis. Retrieved from https://www.grandviewresearch.com/industry-analysis/biscuits-and-cookies-market

[4] Mondelez International. (2021, October 25). Mondelez International Announces Strategic Investment in Chinese Chocolate Maker. Retrieved from https://www.mondelezinternational.com/news/press-releases/2021/mondelez-international-announces-strategic-investment-in-chinese-chocolate-maker.html