Mondelez predicts strong sales for remainder of year despite inflation and other ‘pressure points’

CEO and chairman Dirk Van de Put also attributed the gains during the first half of the year to Mondelez’s focus on volume-led growth and profit dollar, rather than cost and percentage margin, as well as the adoption of a “simplified local-first commercial model where decisions are made closer to the consumer.”

These strategic shifts are creating a “virtuous cycle” that Van de Put says Mondelez will continue to reinforce with its revenue growth management capabilities and by reinvesting in and reshaping the business to further focus on snacking to accelerate the business’ long-term growth rate.

The company’s future success, and that of Q2, is heavily influenced by the ongoing pandemic, which Van de Put explained continues to shape consumer behavior.

“Globally, we are some distance away from reaching a new normal and recovery is uneven, largely dependent on availability and adoption of vaccines. Comfort and mental well-being remain as important as they have been throughout the pandemic, and that is leading consumers to reach for the snack brands they know and love,”​ he said.

This in turn is helping to drive sustained growth in Mondelez’s core categories, including year-to-date a two-year average yearly growth rate of nearly 4% in the company’s biscuit category and almost 6% in chocolate.

At the same time many consumers continue to seek comfort at home, others are returning to offices, schools and in-person obligations as restrictions in some regions ease – elevating the need for variety, convenience, value and nutrition to support increasingly on-the-go lifestyles, Van de Put added.

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