Mondelēz International reaffirms focus on chocolate, biscuits and snacks
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Mondelēz International has appeared at the US Consumer Analyst Group of New York (CAGNY) Conference, highlighting its strategy for furthering development across its complete snacking portfolio, reports Neill Barston.
The company’s core management team of chief executive officer Dirk Van de Put, chief financial officer Luca Zaramella, and executive vice president for North America, Gustavo Valle, offered a major update on its progress for building a sustainable growth model for the business across its operations.
As previously reported by Confectionery Production, the company has placed itself in a strong position for 2024 in spite of wider market disruptions within supply chains, as well as inflation affecting key ingredients including cocoa and sugar.
From its recent annual results, its net earnings for the business stood at $4.9 billion, up 13% year-on-year, with Europe delivering the greatest level of sales (12.8 billion), followed by North America (11.07 billion) and then Asia $7billion), as it continued on a pattern of expanding its range of confectionery and snacks across its territories.For the fourth quarter of 2023, the business delivered net revenue of $9.3 billion, up 7%, despite trading headwinds.
“Our strategic focus on core categories – chocolate, biscuits and baked snacks – has been instrumental in driving success across both emerging markets and developed markets like North America,” Van de Put said.
“We remain confident that our virtuous cycle of strong gross profit dollar growth – fuelling local-first commercial execution and increasing investments in our strong brands, capabilities and talent – will enable us to continue delivering attractive, sustainable growth.”
As the company asserted, it has achieved a strong upward curve since launching its growth strategy in 2018, with its stated goal of continuing to reshape its portfolio to generate 90% of revenue through its core categories—chocolate, biscuits and baked snacks. Consequently, the company’s North American business, which accounts for more than 30% of total net revenue and nearly 40% of operating income, has transformed into a resilient, reliable driver of growth.
“We’re well positioned to take our performance to the next level,” Valle said. “We remain committed to strengthening consumer preference and loyalty through creative and meaningful activations in the region.
