Oreo-Maker Mondelez Will Raise Prices Next Year on Some Products
- Cocoa futures in New York trade at highest since 1978
- Shrinking product sizes ‘won’t solve this inflation,’ CEO says
Cocoa futures in New York have rallied more than 50% in 2023 and are trading at the highest price since 1978 amid forecasts for poor crops in top growers Ivory Coast and Ghana.
Photographer: Shelby Tauber/BloombergThis article is for subscribers only.
Mondelez International Inc., the maker of Oreo cookies and Toblerone chocolates, will raise prices next year on some of its products as the company faces pressure from cocoa and sugar costs.
The cocoa price rally, in particular, is “so important” that the company will need to do a “straightforward price increase,” Chief Executive Officer Dirk Van de Put said in a Bloomberg Television interview Monday. Just making adjustments through shrinkflation, or reducing product sizes, “won’t solve this inflation at this stage,” he said.