Despite Price Hikes, Mondelez Finds Consumers Still Demand Top Snacks
If the record inflation, that's causing higher-than-usual prices at the supermarket over the past few months, has you changing your shopping habits to try to save a buck or two on your grocery budget, then you're not alone. According to Bloomberg, American shoppers, facing bread prices as high as $10 a loaf in some cases, are reducing their spending on the yeasty staple as well as other common grocery items such as eggs and milk. The outlet writes that other items shoppers are skipping over include juice, beef jerky, and canned tomato sauce.
But, there are some food items consumers just don't seem to want to cut back on in spite of rising prices, and that's sugary snacks. According to an article published yesterday on Reuters, the packaged cookies and chocolate bars manufactured by Mondelez International, whose blockbuster brands include Oreo, Chips Ahoy!, and Cadbury, haven't become any less appealing to consumers — even though their prices have steadily gone up.
Shoppers are still reaching for Oreos, chocolates, and other sweet snacks
We don't know about you, but when we're feeling down, we're extra-likely to reach for a sweet mood-booster such as a soft cookie or a bar of chocolate. And, according to Mondelez International Chief Executive Dirk Van de Put, that might be why the international manufacturer of snacks including Oreo and Chips Ahoy! cookies as well as Cadbury and Milka chocolates haven't seen sales slump in spite of having raised prices on popular items in order to keep up with the inflation shaking the food and drinks world.
"While consumers (in developed markets) express growing frustration with rising prices for a broad range of goods and services, they continue to perceive chocolate and biscuits as affordable indulgences and an important pick-me-up," Van de Put said on a post-earnings call (via Reuters).
Reuters reported that recent sales data has demonstrated robust growth for the worldwide snack manufacturer, with Mondelez raising its forecast for this year's organic revenue to rise more than 8%, previously estimated to increase about 4%. In the second quarter of this year, which ran from April through June, Mondelez's net revenue rose about 10% to $7.27 billion, surpassing estimates of $6.78 billion, according to IBES data from Refinitiv, Reuters wrote. According to Food Business News, "affordable indulgences" seem to extend to canned sodas, as well, with the outlet reporting today that beverage giant Coca-Cola will continue to raise prices on its drinks in light of continued excellent sales.