Mondelez Seeks 12-Month Delay on EU Deforestation Law, Citing Supply Chain Strains

Mondelez isn’t opposing the law’s spirit, but says smallholder farmers across West Africa lack the digital infrastructure needed to comply, especially amid record-high cocoa prices and weather-driven crop failures. The company is asking for a 12-month extension to avoid supply disruption. While the headlines sound tense, the long-term impact is likely minimal. Mondelez has already committed to traceable, ethical sourcing and sees this as a timing issue, not a challenge to its overall strategy.

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Lindsell Train Global Equity Fund had the following to say about Mondelez International, Inc. (NASDAQ:MDLZ) in their Q1 2025 investor letter:

“Heineken and Mondelez International, Inc. (NASDAQ:MDLZ) also possess strong defensive qualities, because they sell low ticket, frequently-purchased items, protected by brand power built up over decades of cumulative advertising spend. One can see clear evidence of the consumer loyalty they enjoy via their resilient volume growth figures over the last few years, despite the considerable price increases they’ve been obliged to pass through in the post-Covid inflationary period.”

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