PARIS — Like many international firms, Mondelez Worldwide, Inc. is coping with various levels of uncertainty when it comes to shopper demand.
In a June 14 presentation as a part of the Deutsche Financial institution dbAccess International Shopper Convention, Luca Zaramella, government vice chairman and chief monetary officer at Mondelez, was requested by an analyst to rank the relative issues for the Chicago-based firm.
On the high of the checklist, he mentioned, is the European shopper.
“At this stage, I’d most likely see Europe because the extra uncertain shopper scenario, pushed by the truth that we’ll see the inflation, pushed by the truth that traditionally the European shopper is just a little bit extra inclined to unfavorable emotions plus there’s a entire situation of the warfare that’s hanging as a cloud,” Mr. Zaramella mentioned. “And the discussions with the retailers on pricing are at all times just a little bit tougher in Europe.”
In the meantime, the scenario in the US has been a bit extra of a shock, he mentioned. Mr. Zaramella mentioned Mondelez has taken way more pricing motion in the US than in Europe, however up so far the patron response has been restricted.
“So a whole lot of resiliency from the US shopper, I believe, pushed additionally by the truth that US shoppers … (are) feeling fairly good because it pertains to biscuits and goodies,” he mentioned.
Lastly, Mondelez’s rising markets have been “a little bit of an enigma,” Mr. Zaramella mentioned, including the corporate is seeing stronger progress than what it has seen prior to now. He mentioned the corporate has elevated costs, notably in Latin America, fairly considerably, however quantity progress has continued robust.
“We chart it all the way down to the truth that the patron has saved cash, (is) feeling good concerning the pandemic, and they’re form of dwelling their life like they need to stay it,” he mentioned. Source