Mondelez International, Inc. (MDLZ) CEO Dirk Van de Put Presents at Deutsche Bank Global Consumer Conference

Summary of Mondelez International, Inc. Conference Call Company Overview - Company: Mondelez International, Inc. (NASDAQ:MDLZ) - Date: June 14, 2022 - Participants: - Dirk Van de Put - Chairman and CEO - Vince Gruber - EVP and President, Mondelez Europe - Luca Zaramella - CFO - Stephen Powers - Head of US Consumer Packaged Goods Research, Deutsche Bank Key Industry Insights - Industry: Consumer Packaged Goods, specifically focusing on snacks, biscuits, and chocolate - Market Trends: - Increased consumer preference for snacking, particularly among Millennials and Generation Z - Shift towards indulgent snacking during the pandemic, with 83% of consumers feeling comfortable indulging in snacks daily [7][8] Core Company Strategies and Achievements - Growth Strategy: Transition from a cost-oriented business to a growth-focused company, achieving a 4.2% top-line growth over the last four years [6] - Brand Investment: Increased investment in both global and local brands, with 55% of the portfolio being local brands that have been revitalized [6] - Market Leadership: - Leading position in the global biscuit market, five times larger than the next competitor - Second in the chocolate market, with expectations to become the leader [10][11] Financial Performance and Projections - Category Growth: - Biscuits and chocolate categories grew from 3-4% to 6% during the pandemic [7] - Anticipated growth in the cake and pastry segment, adding approximately $17-18 billion to the market size in Europe [18] - **Oreo Brand Growth**: Projected growth of Oreo by$1 billion every three years, with significant market presence in the U.S. and China [22] Portfolio Reshaping and Acquisitions - Strategic Acquisitions: - Acquisition of Chipita, expected to contribute $600-700 million in revenue and grow faster than the company average [25][26] - Focus on optimizing the portfolio by divesting non-core assets and enhancing core categories [31][32] Consumer Behavior and Market Resilience - Consumer Resilience: Historical data indicates that biscuits and chocolate perform well during recessions, with limited negative elasticity observed [34] - Pricing Power: Successful price increases without significant volume loss, indicating strong brand loyalty and consumer attachment [12][36] Challenges and Future Outlook - Cost Pressures: Anticipated low double-digit inflation (around 12%) in COGS for 2023, with ongoing pricing strategies to mitigate impacts [41][42] - Geographical Concerns: - Europe faces more consumer uncertainty due to inflation and geopolitical issues, while the U.S. market shows resilience [48][49] - Emerging markets are experiencing strong growth despite price increases [49] Regulatory Environment - HFSS Regulations in the U.K.: Adjustments in product placement and promotional strategies in response to new regulations, with a focus on maintaining visibility and seasonal sales [52][54] Conclusion - Strategic Focus: Continued investment in brand building and capacity expansion, with a strong emphasis on maintaining growth in core categories and adapting to market changes [45][59] - Future Goals: Aim for significant geographical and portfolio changes over the next 24 months, with a focus on volume growth and market leadership [59]