Mondelez Philippines does not expect to raise its product prices this year despite higher logistics costs and global uncertainties linked to tensions in the Middle East, a company executive said.
Mondelez Philippines corporate and government affairs lead Caitlin Punzalan Poblador said the company is working to keep its products affordable and accessible to Filipino consumers amid rising fuel prices and the lingering effects of food inflation.
“Thankfully, barring any huge logistical challenges or untoward events related to the Middle East, we don’t expect any price increases for our products for the year,” Poblador said.
She said, however, that significant increases in logistics costs may eventually need to be factored into product pricing.
“But as a company, we always want to make sure that our products continue to be affordable and accessible to consumers. So as much as possible, we don’t want to pass on costs to consumers,” she said.
Poblador also assured consumers that the company has no plans to reduce product sizes as part of cost management efforts. Instead of downsizing products, Mondelez Philippines continues to introduce new offerings and product improvements.
The company recently launched a milkier reformulation of Eden Cheese and introduced a smaller-sized Cadbury Dairy Milk variant for sari-sari stores to provide more affordable options for consumers.
Poblador said Filipino consumers are becoming more selective in their purchases due to economic pressures, prompting the company to remain cautious while closely monitoring geopolitical developments and consumer sentiment.
