Mondelez says promotional spending in the UK and US “was a little tougher” than it expected in 2016, leading it to reappraise its marketing tactics.
Mondelez is looking to take a “more disciplined” approach to its brand marketing in order to build its ‘power brands’ and move away from promotional spending.
The company, which owns brands such as Cadbury, Oreo and Sour Patch Kids, reported its fourth quarter and full year results yesterday (7 February), which showed net revenues decreased 12.5%, mainly due to currency headwinds, for 2016. Organic net revenue increased 1.3%.
Net revenue fell 8.1 per cent to $6.77bn in the fourth quarter. Analysts on average had expected revenue of $6.89bn, according to Thomson Reuters estimates.
The strong pound hit the value of sales outside the US, with sales in Mondelez’s largest market Europe down 4.7 per cent. They did though, edge up on a constant currency basis.
