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Retail sales in the US grew more than expected in August as shoppers spent more on everything from clothes to groceries. This broad growth suggests that people are still willing to spend on daily essentials and small treats despite higher prices at the gas pump.
For a company like Mondelez, this is a helpful signal that its core customers are not pulling back. The business relies on people continuing to pick up snacks like Oreo cookies and Ritz crackers during their regular shopping trips. When overall retail spending is healthy, it is much easier for the company to maintain its sales volume even while it raises prices to cover its own rising costs for ingredients.
Source: Bloomberg Markets and Finance
Mondelez has opened a new $22 million facility in Malaysia to produce ingredients for its chocolate brands, including Cadbury. By moving production closer to its Southeast Asian operations, the company has cut two months off the time it takes to get these ingredients through its supply chain.
This move supports a key part of the company's strategy to grow in emerging markets like Asia. Shorter supply chains are cheaper to run and help the company react faster to local demand. For a business that relies on selling snacks at high volumes, these efficiency gains help protect profit margins even when the costs of raw ingredients like cocoa are high.
Source: CNBC
Mondelez is pushing its Clif brand into the high-protein market for the first time. The new bars contain 20 grams of protein and are designed to compete in a category where shoppers are increasingly looking for functional snacks that offer more than just a quick energy boost.
This move matters because Mondelez has been focused on evolving its snack portfolio toward faster-growing areas like protein and wellness. By using the well-known Clif name to enter this space, the company can likely gain shelf space and customers more easily than it could with a brand-new name. It is a clear step in the company's plan to keep its snack brands relevant as consumer tastes shift.
Source: PRNewsWire
The company is launching a mystery flavor for its Chips Ahoy! brand, inviting customers to guess the new taste. While a single product launch rarely moves the needle for a company this size, these campaigns are a low-cost way to keep legacy brands relevant and maintain shelf space in grocery stores.
Source: PRNewsWire
A new ad campaign featuring several celebrities marks the first anniversary of the Reese's Oreo Cup. This partnership combines two of the most popular brands in the snack aisle. It shows how the company uses its scale to team up with other giants, helping to protect its market share even when it has to raise prices to cover rising costs.
Source: PRNewsWire
Management has a long history of setting a low bar and clearing it, delivering small beats for seven of the last eight quarters. This steady execution makes their forecasts highly reliable.
| Expectation | |
|---|---|
| EPS | $0.72 |
| Revenue | $9.99B |
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