Mondelez International, Inc. (MDLZ) Presents at 2023 CAGNY Conference (Transcript)

Summary of Mondelez International, Inc. 2023 CAGNY Conference Call Company Overview - Company: Mondelez International, Inc. (NASDAQ:MDLZ) - Date: February 21, 2023 - Participants: Dirk Van de Put (Chairman and CEO), Luca Zaramella (CFO), Martin Renaud (Chief Marketing and Sales Officer) Core Industry and Company Focus - Industry: Snack Food Industry - Core Categories: Chocolate, Biscuits, Baked Snacks - Strategic Priorities: Sustainable growth strategy, focus on high-growth categories, marketing and sales excellence, portfolio reshaping through M&A Key Points and Arguments 1. Sustainable Growth Strategy: Mondelez has updated its growth strategy since 2018, focusing on high-growth categories and reshaping its portfolio through M&A [2][3] 2. Financial Performance: The company has achieved strong organic net revenue growth, with a healthy mix of volume and price, and has consistently delivered over $3 billion in free cash flow annually [4][6] 3. **Shareholder Returns**: Over the past four years, Mondelez has returned more than$17 billion to shareholders, with a total shareholder return of over 16%, outperforming the peer average of about 11% [4][6] 4. Market Position: Mondelez holds a 2 global position in chocolate (13% market share) and a 1 position in biscuits (17% market share) [7][8] 5. Consumer Trends: Research indicates that 75% of consumers prioritize snacks in their grocery budget, with 60% expecting to spend the same or more on cookies and chocolate [6][7] 6. Geographic Growth: More than one-third of revenues come from emerging markets, which are growing nearly 11%, and all geographic regions are growing at or above the company's top-line algorithm [9][14] 7. Sustainability Initiatives: Mondelez has committed $1 billion to its Cocoa Life program to improve cocoa sourcing and sustainability, alongside efforts to reduce carbon emissions and packaging waste [12][13] Additional Important Insights 1. **Marketing and Sales Transformation**: The company has modernized its marketing approach, focusing on digital media and personalized advertising, resulting in a 7-point increase in product superiority ratings since 2019 [30][32] 2. **Acquisition Strategy**: Since 2018, Mondelez has made nine strategic acquisitions, adding nearly$3 billion in revenue, with a focus on chocolate and biscuits [43][45] 3. Employee Engagement: Mondelez has made significant strides in diversity and inclusion, with 42% of leadership roles held by women and a 79% employee engagement index [10][11] 4. Future Outlook: The company remains confident in its growth trajectory, driven by strong brand loyalty, effective marketing strategies, and a commitment to sustainability [15][52] Conclusion Mondelez International is well-positioned for future growth, leveraging its strong market positions in chocolate and biscuits, a robust acquisition strategy, and a commitment to sustainability and consumer engagement. The company aims to continue delivering substantial growth and shareholder value in the coming years.