Core Insights - Mondelez, the parent company of Oreo, is facing challenges in the Chinese market, reporting a low single-digit decline in Q3 2025, marking the first quarterly decline this year after several quarters of growth [1][3][5] - The CEO of Mondelez described the situation in China as a "new thing" for the company, indicating unexpected pressures despite overall positive growth earlier in the year [3][5] - The company is implementing a strategy to enhance product differentiation and improve distributor margins in response to the market challenges [6][8] Market Performance - In Q3, Mondelez's Chinese operations experienced a low single-digit decline due to weak consumer confidence and the impact of channel transformation [5][9] - Despite the decline, the company achieved positive growth earlier in the year, with a focus on expanding distribution channels [5][12] - The overall retail market for snacks in China is projected to reach 969.9 billion RMB in 2024, with a growth rate of 2.9%, slower than the previous year's 4.8% [9] Strategic Initiatives - Mondelez is focusing on product differentiation and has outlined a phased approach to enhance distributor margins by tightening sales of core products and low-priced items in various channels [6][8] - The company is also innovating with new products, such as a collaboration between Trident and Dongpeng, and expanding into the restaurant channel with Oreo products [11][12] - Operational efficiency is being improved through the establishment of new warehousing centers, enhancing logistics and supply chain responsiveness [11] Financial Performance - Mondelez's Q3 report showed a revenue increase of 3.4%, primarily driven by pricing rather than volume, leading to a downward revision of the full-year growth forecast from approximately 5% to over 4% [12][13] - The company reported that the acquisition of Enxi Village, a frozen bakery leader, contributed significantly to revenue, generating approximately 288 million USD (about 2.04 billion RMB) in net income for the first three quarters of the year [12] - The CFO indicated that cocoa costs are expected to decline in the coming year, which may positively impact profitability [16]

Company Overview - Mondelez International operates in over 150 countries, providing snacks with an estimated net revenue of approximately $36.4 billion for 2024, and is part of major indices like S&P 500, NASDAQ 100, and Dow Jones Sustainability Index [2] - The company entered the Chinese market in 1984, with its Greater China headquarters in Shanghai, producing and managing various products including biscuits, chocolates, gum, candies, and solid beverages under well-known brands like Oreo and Trident [2] - Mondelez employs around 4,000 people in China, with production bases in North, South, and East China, and a global R&D center located in East China [2] - The Suzhou Lake East factory received the Green Factory title from Jiangsu Province in 2021, and in January 2023, it joined the World Economic Forum's Global Lighthouse Network [2] Compliance and Ethics Initiatives - Mondelez International has established a training mechanism to cultivate a compliance culture, implementing a hybrid training program that deepens employees' understanding of core policies [3] - In 2024, the company conducted approximately 90 interactive compliance live courses, with around 43,000 employees completing the training online [3] - The company has developed and continuously updates a binding Code of Conduct, available in about 32 languages, outlining employees' responsibilities in conducting business lawfully and ethically [3] - All employees are required to undergo annual training on the Code of Conduct, ensuring they read, understand, and comply with its contents [3] Reporting and Accountability - Mondelez International provides accessible complaint mechanisms for employees, contractors, and subcontractors through its compliance and integrity program, with a free hotline and online reporting platform available in over 90 countries [4] - In 2024, the company's ethics and compliance department received over 2,900 contacts globally through these channels, primarily concerning inquiries about compliance policies and reporting of misconduct [4] - The company has integrated compliance principles into its supply chain management, with approximately 96% of its owned production sites and 98% of key suppliers having completed SMETA social responsibility audits in the past three years [4] - Mondelez aims for 100% coverage of its Cocoa Life program's child labor monitoring and remediation system in West Africa by 2025, having achieved 89% coverage in 2024 [4]