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Mondelez Fights Shopper Flight Amid Price Hikes
4 Feb
Summary
- Mondelez faces subdued year due to price increases deterring shoppers.
- Company sources cocoa for 2026 at high rates, delaying price cuts.
- Expected 2026 revenue growth is flat to 2%, below analyst predictions.
Mondelez International is bracing for a subdued year ahead, with recent price hikes deterring cost-conscious shoppers amid broader economic unease. Consumers, especially in the United States, are reportedly tightening their belts and seeking more economical choices, impacting sales volumes for the snack giant.
This consumer behavior shift follows multiple price increases implemented by Mondelez to counteract sharply elevated cocoa costs. Although global cocoa prices have since fallen, the company has already committed to sourcing cocoa for 2026 at rates exceeding current market values, preventing immediate price rollbacks on its products.
Looking forward, Mondelez projects subdued organic net revenue growth between flat and 2% for 2026, a figure falling short of analyst expectations. Adjusted profit growth is also anticipated to be modest, ranging from flat to 5%. These projections reflect ongoing consumer hesitancy and the sustained impact of input cost inflation.
