Oreo cookies, Ritz crackers and Bitter Patch Youngsters shall be dearer in 2022, Mondelez CEO Dirk Van de Put instructed CNBC Tuesday.
“We, for the time being, are beginning off 2022 with a 7% worth improve within the U.S.,” he mentioned on CNBC’s “Closing Bell.”
Van de Put mentioned the corporate expects to see price inflation leap 6% subsequent yr, as a consequence of larger commodity costs and transportation shortages. Retaining retailers well-stocked with product has been tough, he mentioned, noting that on-shelf stock is “nowhere close to the place we wish it to be.”
He famous that these points are international, however are significantly pronounced within the U.S.
Van de Put’s feedback come as Mondelez posted its third-quarter earnings Tuesday, through which it reported a rebound in gross sales throughout China, India and Brazil. These markets had confronted a significant financial toll because of the pandemic, however shopper spending is rising.
“The common shopper around the globe spends 15% extra time at residence than earlier than,” he mentioned. “It occurs that these classes, biscuits and chocolate, are additionally one thing that’s extra consumed at residence.”
Mondelez mentioned its web income for the third quarter ended Sept. 30 rose to $7.18 billion from $6.67 billion a yr in the past, topping analysts’ common estimate of $7.03 billion.
The corporate posted earnings per share of 71 cents, larger than the 70 cents analysts had predicted, in response to information from Refinitiv.
Moreover, the corporate raised its annual gross sales forecast on Tuesday. Mondelez now expects full-year web income to develop 4.5%, up from its prior estimate of 4%.
