Mondelēz CEO says M&A is harder as acquisition targets become ‘too expensive’

Core Insights - The rising asking prices for acquisition targets are making it challenging for companies like Mondelēz International to complete deals, as the food industry experiences a heightened demand for growth through M&A [1][3] - Food companies are increasingly engaging in M&A to incorporate higher-growth and trendier brands, which is driving up overall valuations in the market [2][5] Company Strategy - Mondelēz has been actively pursuing acquisitions since 2017, completing approximately a dozen deals to strengthen its position in the snacking and premium offerings sectors, including brands like Tate's Bake Shop and Clif Bar [3][4] - The company is particularly focused on expanding its cakes and pastries business and premium chocolate category, maintaining a "wish list" of about 40 potential M&A targets each year [4][5] - Mondelēz emphasizes that acquisitions must provide a unique competitive advantage or significantly enhance growth rates to be considered worthwhile [5] Market Trends - The overall volume of acquisitions in the food and beverage sector has slowed to a more normal level in 2025, following a record year, yet the aggregate deal value increased to $61.5 billion, marking a 16.3% rise from the previous year [5] - Higher costs are prompting firms to concentrate on more strategic investments, with many companies indicating that acquisitions will remain a key tool for generating growth [6]