Mondelēz International uses commodity derivatives to hedge against price risks related to anticipated purchases of certain commodities that we use primarily as commodities.
For this reason, the company enters into forward contracts for raw materials mainly for wheat, sugar and other sweeteners, vegetable and soybean oils, and cocoa.
Generally, commodity forward contracts are not subject to the accounting requirements for derivative instruments and hedging activities under the exception of normal purchases.
Mondelēz International also uses options and commodity futures to hedge the price of certain input costs, including cocoa, energy costs, sugar and other sweeteners, wheat, packaging, dairy products, corn and oils. vegetables and soy.
The company sells commodity futures to change the price of future purchase commitments, and occasionally uses related futures to hedge a commodity exposure.
It is not part of leveraged derivatives and, by policy, does not use financial instruments for speculative purposes.
The company is one of the world’s largest snack companies with global net revenue of $ 26.6 billion and net profit of $ 3.6 billion in 2020.
Above all, Mondelēz International manufactures and sells snacks, including cookies, chocolate, chewing gum, and candy, as well as various cheeses, groceries, and powdered beverages.
Its portfolio includes snack brands such as Cadbury, Milka and Toblerone chocolate; Oreo, belVita and LU cookies; Candy aisles; Trident gum and Tang powder drinks.