Matthew Miller
Jul 28, 2021

Mondelez believes snack-at-home habits are here to stay

While reporting strong Q2 results, the maker of Oreo and Toblerone said at-home consumption remains strong while mobility—critical for its retail sales and categories such as candy and gum—picks up.

Mondelez believes snack-at-home habits are here to stay

Sweets and snacks powerhouse Mondelez International is benefitting from the uneven mix of pandemic restrictions in place around the world right now, as sales of home comfort foods remain strong even while on-the-go purchases pick back up. 

"We're seeing improviing mobility trends in many places, helping to drive recoveries in areas, such as world travel retail and gum & candy, that were negatively impacted last year," CEO Dirk Van de Put said on an earnings call. "We also see continued strong demand for the categories and channels that experienced elevated demand last year, due to Covid." 

Van de Put said higher levels of working from home and online shopping seem to be here to stay. Coupled with returning normalcy in some markets, this translates to sustained growth in all the companies core categories, he said on the call. 

For the second quarter, the company reported a 12.4% net revenue increase (to $6.64 billion) on 6.2% growth in organic net revenue. The company raised its forecast for full-year organic net revenue growth to above 4%, versus a prior estimate of around 3%.

The company's emerging-markets segment brought in $2.29 billion in the quarter, up 20% from the prior year. 

Van de Put said the company continues to place effort on expanding its retail presence in key APAC markets, adding 60,000 stores across China in India during the quarter. Mondelez is also ramping up capacity in emerging markets, but doing so by adding production lines rather than opening new factories. 

Related Articles

Just Published

7 hours ago

WPP's Mark Read sees pay package surge

The holding company's resurgence has resulted in a near-doubling of Read's compensation.

7 hours ago

Mango and other ‘masstige’ brands shutter after ...

Counting their losses in China, affordable fashion and beauty brands are recalibrating their business strategies and turning to the US for expansion.

7 hours ago

The We ❤️ NYC campaign which didn't get much love

Brand creatives and New Yorkers alike wonder who truly owns a mark that’s become emblematic of the city itself.

8 hours ago

Mullen Lintas ropes in Meta's Ram Jayaraman as CCO ...

The creative strategist of Meta takes on the role previously held by Garima Khandelwal, who has moved on from the company.