Industry Odisha Bureau, Oct 31: Mondelez pushes deeper into India’s retail market, but rising costs test its growth.
Mondelez International, maker of Cadbury chocolates and Oreo biscuits, is doubling down on India. Its India revenue grew over 20% year-on-year in the third quarter ended September. The company added about 130,000 retail outlets during the period. It now plans to push deeper into the country’s fragmented retail market.
The growth came despite inflation and a slowing global economy. India remains one of its key growth engines. Yet higher freight, fuel and commodity costs are rising alongside sales. That tension sits at the heart of Mondelez’s India strategy.
Revenue growth, however, is not the same as volume growth. Higher sales value can reflect pricing, product mix and wider reach. The reported figure does not show how much came from each factor. It also does not reveal India-specific profits or market-share gains.
Physical reach matters in India’s fragmented retail market of small, scattered stores. Every new outlet gives shoppers another place to find Cadbury or Oreo. Mondelez says its India business outperformed wider market conditions. It credits efforts to improve product availability. But new outlets do not guarantee equal sales. Retailer participation and steady replenishment still decide results.
Chief operating officer Luca Zaramella said the company pursues extra distribution opportunities rigorously. He sees growth beyond simply adding new points of sale. Mondelez also wants to upgrade stores it already serves. It aims to raise the number of products each retailer stocks. Zaramella described the combined opportunity as quite sizable. This is assortment expansion, distinct from adding new locations. Its success depends on shelf space, stock turnover and shopper demand.
Chief executive Dirk Van de Put struck a confident tone with investors on Thursday. He acknowledged that inflation linked to the Middle East conflict worries consumers, including in India. Still, he said the company feels good about emerging-market consumers for now. That is management’s view, not hard evidence of rising household spending power.
Costs remain the key risk. Mondelez flagged higher freight, fuel and commodity prices amid the West Asia conflict. It also pointed to rising dairy, oil and packaging costs. These inputs affect both production and the movement of goods to stores. Wider distribution can also add logistics demands.
The company said it is absorbing these extra costs within its existing financial outlook. That signals confidence, but it does not mean margins face no pressure. Pricing, efficiency and demand will decide how well costs are offset.
Mondelez’s push also shows that retail execution still shapes competition in packaged foods. Even established brands must fight for reach and shelf space. Rivals may also widen their own networks, raising pressure on reach. Reaching more stores is only half the story. The next test is profitability. Mondelez must turn deeper distribution into lasting sales despite costlier operations.
