Mondelez International provides insights into global consumer confidence trends

Mondelez International, a leading consumer packaged goods (CPG) company known for brands like Cadbury chocolate, Oreo cookies, and CLIF baked snacks, has provided insights into consumer confidence across different regions in its latest presentation released.

In the United States, consumer confidence appears mixed, particularly evident in the chocolate, biscuits, and baked snacks categories.

Despite this, Mondelez noted a decline in volume, increased promotional activities, and a shift towards online, club, and dollar store channels.

Dirk Van de Put, chairman and CEO of Mondelez, highlighted factors such as persistent inflation, high interest rates, and reduced benefits from programs like the Supplemental Nutrition Assistance Program (SNAP) impacting lower-income consumers in the U.S.

This pressure is reflected in a decrease in category frequency, particularly among brands catering to this demographic, such as Chips Ahoy.

In response to these challenges, Mondelez is adopting a more agile approach to promotions, including deploying multipacks and resizing some offerings to adapt to changing consumer preferences.

Meanwhile, in Europe, where consumer confidence remains stable, Mondelez experienced slower growth but outperformed the broader fast-moving consumer goods (FMCG) sector.

The region also witnessed a shift towards smaller pack sizes and higher elasticities.

Van de Put noted increased optimism about the economic outlook in Europe, indicating positive prospects for the future.

In contrast, consumer confidence in emerging markets remained strong during the first quarter, leading to resilient demand, a growth in premium offerings, and a continued preference for branded products.

However, these markets also displayed sensitivity to price points.

To capitalize on growth opportunities in emerging markets, Mondelez expanded its presence by adding over 100,000 stores in these regions during the quarter.

As a result, the company reported a significant 8.3% year-over-year revenue growth in emerging markets, outpacing growth in developed markets.

The company’s strategic efforts to navigate varying consumer sentiments across regions reflect its commitment to driving growth and adapting to evolving market dynamics.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE