This audio is automatically created. Please let me know if there is feedback.
CADBURY MOKER MONDELēz CEO of the CADBURY MONDELēz International is convinced that even if the amount of stubborn cocoa prices pay more for popular sweets, the sweet teeth of consumers will buy chocolate.
Chocolate manufacturers have raised their prices due to many years of diseases and poor weather. Mondelēz, which ranked second in $ 134 billion in global chocolate segments, increased the chocolate price by about 10% last year, and consumers expect the price to be up to 50% higher than usual.
Nevertheless, DIRK Van de PUT’s CEO believes in the Food Dive that the love for the chocolate of consumers and the strengths of the company’s portfolio (brands such as TOBLERONE and MILKA) will help to explore the volatility of the company.
Van de PUT said in a consumer analyst group at the New York Annual Meeting in Florida, “We still believe in chocolate very strongly.”
Chocolate has formed about one -third of the Mondelēz business, and higher prices have not affected sales. The snack giant estimates that the sales of the chocolate business led by Milka and CADBURY recorded $ 11.2 billion in 2024 and slightly falling.
Selective caption
Bruno Vincent through Getty Image
As the cost of cocoa increases, snack giants are planning an additional price increase in 2025.
We also take different measures to offset higher costs. In places such as Europe and India, the company launches additional packs for major brands, including Milka and Cadbury, to provide consumers with more choices according to their budget. In addition, it is attracting buyers’ attention by strengthening the activation of the store and pushing the season items stronger.
Hershey, who expects that the price of cocoa will have a significant impact on imports, has explored chocolate alternatives to help offset the cost.
Michele Buck, CEO of Pennsylvania, is CAGNY’s Michele Buck, which has increased Cagny’s marketing and increased 40% in chocolate.
While doing Mondelez ‘s The portfolio of well -known chocolate brands is the key to offering more advantage over competitors. There are other strengths of snacks. It purchases a large amount of cocoa at a higher price than a small -scale competitor who is pressure on the loan control than the small competitors purchased every month.
Snack giants benefit from wide package size. In addition, chocolate tablets and blocks, the most popular forms of countries other than the United States, are powerful, and consumers are often willing to pay slightly more for the most rich and intimate chocolate flavors and oral feelings.
Van de PUT said in the Cocoa volatility, which Mondelēz is ongoing.
But the price of cocoa will not go back to the level that has reached four years ago. His advice to shoppers: I’m used to paying more money for popular sweets.
“Consumers should be familiar with chocolate, 30%, 40%, and 50%more expensive than before.” He told the analysts.
Erin Lash, director of MorningStar’s Consumer Equity Research, said that chocolate’s cheap indulgence, intense brand loyalty, and chocolate as a minimum personal label can come from recent confusion.
In an interview, she said, “This category was able to digest digestion and return consumers.” “I haven’t seen anything to suggest that it will change.”
