Mondelez to increase prices by 7% in 2022

Oreo cookies, Ritz crackers and Sour Patch Kids will be more expensive in 2022, Mondelez CEO Dirk Van de Put told CNBC on Tuesday.

“At the moment, we plan to start 2022 with a 7% price increase in the United States,” he said on CNBC’s “Closing Bell”.

Van de Put said the company expects cost inflation to jump 6% next year, due to rising commodity prices and transportation shortages. Keeping retailers well stocked with product has been difficult, he said, noting that on-shelf inventory is “far from where we would like it to be.”

He noted that these problems are global, but are particularly pronounced in the United States.

Van de Put’s comments come as Mondelez released its third-quarter results on Tuesday, in which it reported a rebound in sales in China, India and Brazil. These markets had faced a heavy economic toll due to the pandemic, but consumer spending is increasing.

“The average consumer around the world is spending 15% more time at home than ever before,” he said. “It turns out that these categories, cookies and chocolate, are also something more consumed at home. “

Mondelez said its net revenue for the third quarter ended Sept. 30 was $ 7.18 billion from $ 6.67 billion a year ago, beating analysts’ average estimate of 7 , 03 billion dollars.

The company posted earnings per share of 71 cents, higher than the 70 cents expected by analysts, according to data from Refinitiv.

In addition, the company raised its annual sales forecast on Tuesday. Mondelez now expects 4.5% growth in net sales for the full year, up from its previous estimate of 4%.