Mondelez CEO Says Oreos, Ritz Crackers, and Sour Patch Kids Will Cost More

For those who love their snack foods, many items are about to see a price increase according to the CEO of Mondelez.

The American multinational confectionery, food, holding and beverage and snack food company is expecting to raise prices by 7% in the U.S. in order to combat rising inflation costs.

Keeping retailers well-stocked with product has been difficult, the company’s CEO said, noting that on-shelf inventory is “nowhere near where we would like it to be.”

CEO Dirk Van de Put said the statements on CNBC’s “Closing Bell” on Tuesday, adding, “We, at the moment, are looking at starting off 2022 with a 7% price increase in the U.S.”

According to Van de Put, Mondelez expects to see cost inflation jump 6% next year, due to higher commodity prices and transportation shortages.

The CEO noted that these issues are global, but are particularly pronounced in the U.S.

Mondelez posted its third-quarter earnings also on Tuesday, revealing a rebound in sales across China, India and Brazil. Those markets had faced a major economic toll due to the pandemic, but consumer spending is increasing.

“The average consumer around the world spends 15% more time at home than before,” he said. “It happens that these categories, biscuits and chocolate, are also something that is more consumed at home.”

The company’s net revenue for the third quarter ended Sept. 30 rose to $7.18 billion from $6.67 billion a year ago, topping analysts’ average estimate of $7.03 billion.

Earnings per share came in at 71 cents, higher than the 70 cents analysts had predicted, according to data from Refinitiv.

The company also raised its annual sales forecast on Tuesday. Mondelez now expects full-year net revenue to grow 4.5%, up from its prior estimate of 4%.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.