Oreo cookies, Ritz crackers and Sour Patch Kids will be more expensive in 2022, Mondelez CEO Dirk Van de Put told CNBC on Tuesday.
“We are currently looking at the beginning of 2022 with a 7% increase in US prices,” he told CNBC’s Closing Bell.
Van de Put said the company expects prices to rise by 6% next year due to higher commodity prices and a shortage of vehicles. It was difficult to keep retailers stocked with stock, he said, and noting that the inventory on the shelves was “far from what we would like.”
He noted that these problems are global in nature, but are especially pronounced in the United States.
Van de Put’s comments follow after Mondelez released its third-quarter earnings report on Tuesday, which reported a rebound in sales in China, India and Brazil. These markets are facing severe economic losses due to the pandemic, but consumer spending is on the rise.
“The average consumer around the world spends 15% more time at home than before,” he said. “It happens that these categories, biscuits and chocolate, are also consumed more at home.”
Mondelez said its net revenue for the third quarter ended September 30 rose to $ 7.18 billion from $ 6.67 billion a year earlier, higher than the average analyst estimate of $ 7.03 billion.
According to Refinitiv, the company’s earnings per share were 71 cents, higher than analysts’ forecasts of 70 cents.
In addition, the company raised its annual sales forecast on Tuesday. Mondelez now expects net revenue to grow 4.5% year over year, up from a previous estimate of 4%.