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BusinessMondelez to raise prices by 7% in 2022

Mondelez to raise prices by 7% in 2022

Oreo cookies, Ritz crackers and Sour Patch Kids will probably be dearer in 2022, Mondelez CEO Dirk Van de Put informed CNBC Tuesday.

“We, at the moment, are looking at starting off 2022 with a 7% price increase in the U.S.,” he mentioned on CNBC’s “Closing Bell.”

Van de Put mentioned the corporate expects to see value inflation soar 6% subsequent 12 months, due to larger commodity prices and transportation shortages. Keeping retailers well-stocked with product has been tough, he mentioned, noting that on-shelf stock is “nowhere near where we would like it to be.”

He famous that these points are international, however are notably pronounced in the U.S.

Van de Put’s feedback come as Mondelez posted its third-quarter earnings Tuesday, in which it reported a rebound in gross sales throughout China, India and Brazil. Those markets had confronted a significant financial toll due to the pandemic, however shopper spending is rising.

“The average consumer around the world spends 15% more time at home than before,” he mentioned. “It happens that these categories, biscuits and chocolate, are also something that is more consumed at home.”

Mondelez mentioned its internet income for the third quarter ended Sept. 30 rose to $7.18 billion from $6.67 billion a 12 months in the past, topping analysts’ common estimate of $7.03 billion.

The firm posted earnings per share of 71 cents, larger than the 70 cents analysts had predicted, in accordance to information from Refinitiv.

Additionally, the corporate raised its annual gross sales forecast on Tuesday. Mondelez now expects full-year internet income to develop 4.5%, up from its prior estimate of 4%.

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