DEERFIELD, Ill. (AP) — Mondelez said price increases scared off some customers in its second quarter, and the company trimmed its sales forecast for the year.
The maker of Oreo, Cadbury and Trident on Wednesday reported lower sales that fell short of Wall Street expectations. Cost-cutting helped push up profit by 3.5 percent, however. Like many other packaged food companies, Mondelez has been slashing costs wherever it can to offset weak sales.
In a conference call, CEO Irene Rosenfeld said Mondelez raised prices to make up for rising costs for ingredients such as cocoa and dairy products. The company had expected its pricing actions to hurt sales, she said, but didn't expect such a big impact.
"It's been even more challenging than expected," she said.
She mentioned negative reactions in Europe, particularly in France, where some stores decided to stop carrying products because of the higher prices. Still, she said the lost market share should be temporary because competitors will eventually have to raise prices to cover their own costs.
Mondelez International Inc., based in Deerfield, Illinois, has been under pressure to improve its performance since splitting from Kraft Foods Group in late 2012. The split was intended to give each of the companies a more focused stable of products, with Kraft taking North American supermarket staples like Jell-O and Miracle Whip.
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