Published by Global Banking & Finance Review®
Posted on October 28, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleMondelez lowers its profit forecast as snack demand weakens due to consumer price sensitivity and rising cocoa costs, impacting sales in key markets.
(Reuters) -Mondelez International cut its annual profit forecast on Tuesday, as value-conscious consumers scaled back on purchases of its pricey chocolates and snacks in North America and Europe, and higher cost of cocoa added pressure.
Consumers in the U.S. have been seeking healthier snacking options as they turn more conscious of their protein and sugar intakes, forcing packaged food companies to rethink their portfolios. Mondelez said it was looking to expand its Oreo zero sugar and gluten-free ranges.
The company has raised prices to offset higher cocoa costs. However, inflation has turned consumers more price conscious, weakening demand for Mondelez's products.
The prolonged U.S. government shutdown exacerbated economic uncertainty and cost-of-living concerns in the country, which has impacted consumer confidence, Mondelez executives said in a prepared statement.
Consumers, frustrated by price hikes, were focusing on essentials. This affected sales of snacks, and promotions were also not succeeding in bringing demand back into the category in the U.S., Mondelez executives said on a post-earnings call.
With Halloween approaching, Mondelez was looking to offer more differentiation between smaller and larger packs and work on its promotions to make sure products are affordable, the company said.
Like other consumer-facing firms, including Tide detergent maker Procter & Gamble and snacks giant PepsiCo, Mondelez said lower-income consumers were shopping for value with smaller packs and at discounted channels, while higher-income consumers looked for premium, fresher products.
Mondelez's Volumes fell 7.5 percentage points in Europe, its biggest market, and 1.8 pp in North America. Van de Put said that the company, which raised prices by 12.6 pp in the quarter in Europe, was also hurt by lower prices from its competitors.
The company expects 2025 adjusted earnings per share to decline about 15%, compared with its prior target of a 10% fall.
Its shares were down 4% in extended trading after Mondelez also tempered its expectation for annual organic net revenue growth to 4% plus, compared with about 5% it forecast in July.
Mondelez's quarterly net sales of $9.74 billion edged past analysts' average estimate of $9.71 billion, according to data compiled by LSEG, while its adjusted earnings per share also beat expectations by 2 cents.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar and Maju Samuel)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.
Consumer perception is how individuals view and interpret a brand or product based on their experiences, beliefs, and feelings. It significantly influences purchasing decisions.
Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).
Retail trade involves the sale of goods and services directly to consumers. It encompasses various businesses, including stores, online shops, and marketplaces.
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