Financial Data and Key Metrics Changes - The company reported a decline in volume in North America by 4% compared to a 2.8% average year-to-date, indicating a slowdown in the market [20][21] - The company expects a step-up in organic net revenue growth for Q4, guiding more than 4% growth [13][46] - The company anticipates high single-digit EPS growth for 2026, despite planned investments [15][72] Business Line Data and Key Metrics Changes - In Europe, the chocolate business faced a 30% price increase due to cocoa costs, but overall performance is in line with expectations [5][9] - The U.S. biscuit category is under pressure, with promotional strategies not delivering expected returns [21][66] - Emerging markets showed a 4.7% volume decline, primarily affected by Argentina's economic situation and pricing strategies in India [39][40] Market Data and Key Metrics Changes - Consumer confidence in Europe remains stable, but there are pockets of pressure due to competitive pricing and retailer margin increases [5][6] - In the U.S., consumers are shifting towards value-oriented purchases, impacting overall basket sizes and category performance [20][21] - Emerging markets like Brazil showed double-digit growth, while China experienced low single-digit growth, indicating mixed performance across regions [41][40] Company Strategy and Development Direction - The company is focusing on optimizing pricing strategies and promotional effectiveness to regain growth in North America [24][66] - There is a strong emphasis on innovation with new flavors and formats to drive consumer engagement [8][15] - The company plans to invest in supply chain improvements and automation to enhance profitability and service levels [48][50] Management's Comments on Operating Environment and Future Outlook - Management noted that the cocoa cost environment is expected to improve, which should positively impact margins going forward [9][14] - The company is cautious about the U.S. market outlook, projecting continued challenges but also opportunities for growth through channel expansion [29][46] - Management expressed confidence in the long-term growth potential in emerging markets, despite short-term pressures [40][41] Other Important Information - The company is implementing a multi-year North America supply chain program aimed at reducing costs and improving efficiency [48][50] - There is a focus on maintaining a balance between protecting profit margins and offering value to consumers [66][68] Q&A Session Summary Question: Insights on European market pricing and elasticity - Management indicated that price elasticity in Europe is currently around 0.7 to 0.8, higher than historical norms, and adjustments are being made to address pricing issues [34][36] Question: U.S. market growth strategy - Management acknowledged the need to protect profit pools while also focusing on value through pack price architecture adjustments [66][68] Question: Expectations for North America in Q4 - The company expects a rebound in North America driven by improved pricing strategies and promotional effectiveness [46][72] Question: Impact of cocoa prices on future guidance - Management stated that cocoa prices are being monitored closely, with strategies in place to benefit from potential declines [14][28] Question: SG&A cost structure and future investments - Management outlined that SG&A reductions are not entirely permanent, with plans for increased spending in 2026 to support growth initiatives [55][72]

Financial Data and Key Metrics Changes - The company reported a year-to-date organic net revenue growth of more than 4% for Q4, with an implied EPS growth translating to significant EBIT growth compared to the previous year [11][40] - The company faced challenges including tariffs, material destocking in the U.S., and an unprecedented heat wave in Europe, which impacted consumer confidence and volume trends [9][10] Business Line Data and Key Metrics Changes - In Europe, the chocolate business experienced a substantial price increase of about 30%, with elasticity around 0.7 to 0.8, which is higher than previously expected [6][29] - The U.S. biscuit category saw a volume decline of 4%, driven by consumer concerns about the economy and a shift towards value-seeking behavior [16][17] Market Data and Key Metrics Changes - Emerging markets experienced a volume decline of 4.7%, primarily due to hyperinflation in Argentina and strategic downsizing in India [34] - China showed low single-digit growth in Q3, indicating a new challenge for the company, while Brazil reported double-digit growth due to strong execution in biscuits and chocolate [35] Company Strategy and Development Direction - The company is focusing on optimizing pricing strategies and promotional effectiveness to drive growth, particularly in the U.S. market [20][56] - There is a clear intention to invest in emerging markets and adjacencies like cakes and pastries, with a target of high single-digit EPS growth for 2026 [13][62] Management's Comments on Operating Environment and Future Outlook - Management noted that the cocoa cost environment is expected to improve, which will positively impact future pricing strategies and profitability [12][31] - The company is adapting its product offerings and pricing architecture to better align with consumer expectations and market conditions [57][58] Other Important Information - The company is implementing a multi-year North America supply chain program aimed at improving cost structures and service levels [43][44] - There is an emphasis on continuous investment in brands and activation at the point of sale to support long-term growth [62] Q&A Session Summary Question: Insights on European market pricing and elasticity - Management indicated that the price elasticity in Europe is currently around 0.7 to 0.8, which is higher than historical norms, and adjustments are being made to address pricing gaps [28][29] Question: Path forward for U.S. growth - The U.S. market is experiencing a volume decline, but management is optimistic about returning to growth through strategic pricing and promotional adjustments [15][22] Question: Expectations for North America in Q4 - Management expects a rebound in Europe and a slight improvement in North America, driven by pricing strategies and promotional effectiveness [40][41] Question: SG&A cost reductions and future investments - Management outlined that SG&A reductions are primarily due to working media declines, but investments will increase in 2026 to support growth initiatives [46][48]

Core Viewpoint - The J.M. Smucker Co. is suing Trader Joe's, claiming that the grocery chain's new frozen peanut butter and jelly sandwiches infringe on Smucker's trademarks due to their similar design and packaging [1][4]. Group 1: Lawsuit Details - Smucker alleges that Trader Joe's sandwiches have the same pie-like crimp markings and round, crustless design as its Uncrustables, which violates its trademarks [1][6]. - The lawsuit states that the blue color of the packaging used by Trader Joe's is identical to that of Smucker's Uncrustables, further infringing on its trademarks [2][3]. - Smucker claims that the visual representation of a sandwich with a bite taken out of it on Trader Joe's packaging is also similar to Uncrustables, contributing to customer confusion [3][8]. Group 2: Brand Development and Investment - Smucker has invested over $1 billion in developing the Uncrustables brand over the past 20 years, focusing on perfecting the product and expanding its flavor offerings [7]. - The company emphasizes that it does not oppose the sale of other crustless sandwiches but cannot allow others to use its intellectual property for their sales [3][6]. Group 3: Previous Legal Actions - This lawsuit is not the first instance of Smucker protecting its Uncrustables brand; in 2022, it sent a cease and desist letter to a Minnesota company for producing similar products [13]. - The lawsuit follows a recent similar case where Mondelez International sued Aldi for packaging that resembled its well-known brands [14].

Core Insights - Mondelez International, Inc. (NASDAQ:MDLZ) is recognized as one of the best food dividend stocks to buy according to analysts [1] - The company has a strong portfolio of popular snack products, including Oreos, Cadbury chocolate, and Sour Patch Kids, contributing to its significant market presence [2] Dividend Performance - Over the past five years, Mondelez has increased its dividend by more than 10% annually and has repurchased billions of dollars' worth of shares, reducing the total stock by approximately 15% since 2018 [3] - In July, Mondelez raised its quarterly dividend to $0.50 per share, marking the 12th consecutive year of dividend increases, with a current dividend yield of 3.19% as of October 5 [4]

Group 1 - Consumers in the US are becoming more cautious about spending, even on small treats like Oreo cookies, leading to a decline in revenue and sales volumes for Mondelez during the second quarter [1][2] - Mondelez's North American sales fell by 3.5% year over year in the second quarter, attributed to consumer anxiety regarding personal finances, job expectations, and inflation [2] - Many customers are opting for smaller packs of cookies that are more expensive per unit, contributing to a decrease in the overall volume of snacks sold in the US [2][9] Group 2 - The threat of tariffs has influenced shopping behavior, with companies like Conagra and Walmart planning to pass on some costs to consumers, potentially resulting in higher prices [7] - Tariffs may have also led to reduced availability of Mondelez products on retail shelves, as stores adjusted their purchasing strategies in anticipation of tariff impacts [8] - Despite the overall slowdown in food consumption and snacking, some consumers are still willing to spend on dining out, indicating a complex consumer behavior landscape [10]

Financial Data and Key Metrics Changes - The company reported a 3.1% growth in organic net revenue for Q1 2025, driven by strong pricing execution in the chocolate business despite significant cocoa input cost inflation [6][18] - Adjusted gross profit was significantly impacted by record cocoa costs, leading to an 18% decline in EPS on a constant currency basis [9][32] - Free cash flow for the quarter was $800 million, indicating strong cash generation capabilities [9][33] Business Line Data and Key Metrics Changes - The chocolate segment grew by 10.1%, with significant growth across both developed and emerging markets, although volume mix was down 5.7% due to elasticity and trade destocking [22][24] - The biscuits and baked snacks category grew by 0.3%, with notable brands like Loo and Seven Days contributing to growth, but faced challenges in the U.S. due to retailer destocking [20][21] - Gum and candy grew by 1%, driven by performance in China and Mexico, but faced volume mix challenges due to trade destocking in the U.S. [22] Market Data and Key Metrics Changes - North America experienced a decline of 3.6% primarily due to retailer destocking and softer consumer demand, particularly in the food and mass channel [26] - Europe grew by 8.9% in Q1, with strong execution and growth in key countries like the UK, France, and Germany [24] - Emerging markets grew by 3.9%, with Brazil and China showing strength, while India faced challenges due to inflationary pressures [19][28] Company Strategy and Development Direction - The company remains committed to its strategic growth agenda, focusing on brand reinvestment, expanding distribution, and sustainability initiatives [11][14] - The chocolate strategy is on track, with a focus on offering a variety of pack sizes to cater to different consumer needs and maintaining entry-level pricing [15][16] - The company aims to continue innovating with new flavors and formats, leveraging strong brand loyalty to drive long-term success [17][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook despite external volatility, highlighting strong pricing execution and category growth [6][7] - Consumer sentiment is mixed, with significant declines in the U.S. due to inflation fears, while European consumer confidence remains stable [46][49] - The company anticipates a gradual improvement in the U.S. biscuits category as destocking subsides and promotional activities increase [107] Other Important Information - The company achieved a top-tier ranking in the global advantage survey for retailer partnerships, reflecting strong relationships with retailers [13] - Sustainability efforts are progressing well, with 91% of cocoa volume sourced through the Cocoa Life program and a 12% reduction in carbon emissions since 2018 [14] Q&A Session Summary Question: Trends in key regions for the year ahead - Management noted strong pricing execution in Europe and share gains in emerging markets, particularly in China and Brazil, despite softness in North America [41][44] Question: Key considerations for North America and pricing in Europe - Management reaffirmed confidence in pricing strategies and noted that the Easter season was strong, with expectations for improved results in Q2 [55][58] Question: Strategy to mitigate cocoa inflation - The company is executing a multifaceted strategy involving pricing, productivity, and RGM, with a focus on maintaining key price points and offering a range of pack sizes [67][70] Question: Profit dollar generation and future cadence - Profit dollar generation exceeded expectations due to better pricing, productivity improvements, and favorable commodity procurement [93][96] Question: Insights on North American biscuit category softness - Management highlighted the need to focus on price points and promotional activities to address category softness, with expectations for gradual improvement [102][106]

Financial Data and Key Metrics Changes - The company reported a 3.1% growth in organic net revenue for Q1 2025, driven by strong pricing execution in the chocolate business despite significant cocoa input cost inflation [6][18] - Adjusted gross profit was significantly impacted by record cocoa costs, leading to an 18% decline in EPS on a constant currency basis [9][32] - Free cash flow for the quarter was $800 million, with a stock repurchase of $1.5 billion at an average price of $57.91 [9][33] Business Line Data and Key Metrics Changes - The chocolate segment grew by 10.1%, with significant growth across both developed and emerging markets, although volume mix was down 5.7% due to elasticities and trade destocking [22][24] - The biscuits and baked snacks category grew by 0.3%, with notable brands like Loo and Seven Days contributing to growth, but faced challenges in the U.S. due to retailer destocking [20][21] - Gum and candy grew by 1%, driven by performance in China and Mexico, but faced volume mix challenges in the U.S. [22] Market Data and Key Metrics Changes - North America experienced a revenue decline of 3.6%, primarily due to retailer destocking and softer consumer demand, particularly in the food and mass channel [26] - Europe saw an 8.9% growth in Q1, with strong execution in key countries like the UK, France, and Germany, benefiting from successful pricing execution and Easter season performance [24][25] - Emerging markets grew by 3.9%, with strong performance in Brazil and China, although India and Southeast Asia showed some softness [19][28] Company Strategy and Development Direction - The company remains committed to its strategic growth agenda, focusing on brand reinvestment, expanding distribution, and sustainability initiatives [11][14] - The chocolate strategy is on track, with a focus on offering a variety of pack sizes and maintaining entry-level pricing to drive consumption [15][16] - The company aims to navigate cocoa cost challenges while driving long-term category health and share gains [17][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook despite external volatility, highlighting strong pricing execution and category growth [6][7] - Consumer sentiment is mixed, with North America facing significant challenges due to inflation fears, while Europe shows stable consumer confidence [46][49] - The company expects to see an acceleration in top-line growth in Q2, driven by successful Easter activations and improved pricing strategies [60][62] Other Important Information - The company achieved a top-tier ranking in the global advantage survey for retailer partnerships and made significant progress in sustainability targets [13][14] - Cocoa prices remain elevated, but the company anticipates a small surplus for the year, with expectations of potential demand declines impacting future cocoa prices [33][34] Q&A Session Summary Question: Trends in key regions for the year ahead - Management noted strong pricing execution in Europe and share gains in emerging markets, while North America remains softer due to retail destocking [41][44] Question: Key considerations for North America and pricing in Europe - Management reaffirmed guidance for 2025, highlighting successful customer negotiations and strong pricing execution across markets [55][56] Question: Strategy to mitigate cocoa inflation - The company emphasized a balanced approach involving pricing, productivity, and RGM strategies, with ongoing monitoring of consumer reactions [67][68] Question: Insights on North American destocking - Destocking was primarily observed in food and mass channels, with DSD systems not fully mitigating the impact [88][89] Question: Profit dollar generation and future cadence - The company experienced better-than-expected profit dollar generation due to improved pricing and productivity, with manageable tariff impacts anticipated [93][96]