Corporate Profiles - 2024 - 96

COMPANY overview
Mondelez International, Inc.
Company aims to accelerate volume
growth in North America
E
conomic challenges have created a tougher
consumer environment, especially in North
America, for Mondelez International, Inc.
" While our operating environment remains challenging
and dynamic, our teams remain focused
and agile, " said Dirk Van de Put, chairman and
chief executive officer, in a conference call after
the market close on July 30. " We continue to play
for the long term in chocolate, biscuits and baked
snacks, because these core categories remain
strong consumer favorites. "
The Chicago-based snack company saw net
revenue decline 1.9% to $8.43 billion in the fiscal
year's second quarter ended June 30, down
from $8.51 billion a year earlier. The North American
business' revenue performance lagged behind
consumers who are more focused on convenience
look for multipacks ... Our proven playbook for
price-pack architecture allows us to offer a broad
range of options to meet each of these consumers'
differing definitions of value. "
Cakes, pastries and baked snacks continue to represent
key opportunities for growth for Mondelez. The
company's market share in the chocolate and biscuit
categories allows for a " natural expansion " into
the $80 billion global cakes and pastries segment,
Van de Put said. In particular, the segment remains
fragmented with a large amount of " basic products, "
creating space for Mondelez to enter the market with
premium offerings from its high-value brands.
Chipita Global SA, for example, represents the
potential for such a strategy. Mondelez acquired
the packaged cakes and pastries maker in 2022,
and the company believes the brand may be used
to expand its Cadbury and Milka chocolate brands
into croissants.
" The opportunity there is to innovate with some
of our chocolate brands, have a higher distribution
in the existing countries and then extend worldwide, "
Van de Put said of Chipita's offering in a
Sept. 4 presentation at the Barclays Global Consumer
Staples Conference.
Mondelez further aims to grow its share of InChief
executive officer -
Dirk Van de Put
all other regions, falling 3.4% to $2.65 billion
from $2.74 billion last year.
Van de Put said the company will continue its
four-pronged growth acceleration strategy to improve
sales volumes in the region. The approach
includes developing new pack sizes targeted at
specific consumer groups and price points via data
analytics; channel expansion into convenience
and club channels; improved demand planning,
sales productivity and in-store execution using
artificial intelligence and machine learning; and
enhanced consumer marketing.
" In North America, some consumers are seeking
snacking options at specific price points to fit
within a specific overall ticket size, " he said. " Other
96 \ October 2024
dia's biscuit market through a partnership with
Lotus Bakeries Corp to market and sell Biscoff
biscuits in the country. The partnership gives Mondelez
a strong brand to complement Oreo in India,
and Lotus gains access to the market without
needing to invest in manufacturing and distribution
capabilities.
In May, the company faced a €337.5 million fine
from the European Commission (EC) for hindering
the cross-border trade of chocolate, biscuits and
coffee products through 22 anticompetitive agreements
between 2006 and 2020.
The commission also found Mondelez prevented
some exclusive distributors from replying to sale
requests in other Member States without prior permission
from Mondelez. The EC said it reduced the
fine by 15% because the company cooperated with
the EC and acknowledged its liability in infringing
competition. CP
2021
$28,720
Source: Mondelez International, Inc.
Mondelez International, Inc.
net earnings
in millions
2023
$4,959
2022
$2,717
2021
$4,300
Source: Mondelez International, Inc.
Mondelez International, Inc.
net revenue
in millions
2023
$36,016
2022
$31,496
Mondelez International, Inc.
share price
$56
$62
$68
$74
$80
Sept. 4, 2024 = $75.27
HIGH =
Oct. 12, 2023 = $59.93
LOW =
Feb. 2, 2024 = $75.92
Sept. Nov.
2023
Jan.
2024
March May
Source: New York Stock Exchange
MONDELEZ INTERNATIONAL, INC.
July
Sept.
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Corporate Profiles - 2024

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