INDUSTRY NEWS e
Mondel¯z navigates record cocoa costs in Q3 report
Despite facing its sharpest cocoa cost inflation ever, Mondel¯z International delivered modest revenue growth in Q3 2025, revealing both resilience and strain across the global chocolate sector. The maker of Cadbury, Milka, Oreo, and
Toblerone reported net revenues up 5.9% year-over-year to $9.74 billion, driven primarily by pricing gains that offset steep volume declines. Profitability, however, fell sharply under the weight of record commodity prices—especially cocoa.
COCOA COSTS PRESSURE MARGINS CEO Dirk Van de Put called Q3 the “peak costs of the year,” noting that cocoa inflation, supply shortages, and logistics expenses heavily compressed margins. Gross margin fell to 26.8%, nearly six points lower than a year
earlier. Adjusted operating income dropped 33% at constant currency, and adjusted EPS slid 24% to $0.73. Still, Van de Put pointed to recent moderation in cocoa prices and the prospect of a stronger fall harvest as reasons for cautious optimism.
PRICING GAINS, LOWER VOLUMES Organic net revenue rose 3.4%, but volumes declined 4.6%, showing consumers are buying less while paying more. Regional trends varied: • Europe: revenues +10.6%; pricing +12.6%; volumes –7.5%.
• Latin America: +2.8%, mostly from pricing.
• Asia/Middle East/Africa: +9%, supported by emerging-market demand.
• North America: –0.4% amid price fatigue.
CSM Ingredients launch Nuaré cocoa alternatives
CSM Ingredients has launched Nuaré, a new carob-based range of cocoa alternatives designed to expand creative possibilities in baking and ice cream while helping producers navigate extreme cocoa price volatility and rising sustainability pressures. The range will debut at Food Ingredients Europe 2025 in Paris, where CSM Ingredients will appear alongside HIFOOD and Vitalfood by Italcanditi at Nexture’s booth.
With cocoa prices at record highs due to supply constraints and climate-related challenges, manufacturers are increasingly seeking stable and predictable ingredients. Nuaré aims to meet this demand with a plant-based system that offers reliable supply, cost stability and distinctive optical and sensory properties. Developed for both industrial and artisanal production, the formulations are designed for easy integration into existing CSM Ingredients’ in-house capabilities. Initial uses include cake coatings that maintain shine and color stability; ice cream coatings optimized for viscosity, adhesion and gloss; dark bakery mixes that mouthfeel without dependence on cocoa availability. Carob, the base of the Nuaré range, comes from the drought- tolerant Mediterranean carob tree, which requires minimal agricultural input and has a naturally low carbon footprint. Once processed, carob produces a mildly sweet powder with caramel golden, nutty and caramel-brown shades that traditional cocoa cannot achieve, making it well-suited for bakery, confectionery and ice cream applications.
• Emerging markets grew 7.1%, far outpacing developed markets at 1.2%.
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INDUSTRY CONTEXT Cocoa prices surged to historic highs this year due to poor West African harvests, pests, and structural supply problems. Competitors including Nestlé and Hershey also reported margin pressures, and volatility is expected into 2026.
CASH FLOW AND OUTLOOK Despite earnings pressure, Mondelz generated $2.1 billion in operating cash flow and $1.2 billion in free cash flow year-to-date, returning $3.7 billion to shareholders. For 2025, it now expects 4%+ organic revenue growth, a roughly 15% EPS decline, and over $3 billion in free cash flow.
Tereos launches new corn-based fibre, Actifiber®
Tereos, France’s leading cereal processor and a global player in sugar, starch and alcohol, is launching Actifiber®, a corn- based ingredient designed to boost fibre content in food and beverages. The solution aims to help brands improve nutritional profiles and reduce calories without affecting taste or texture. Made from non-GMO corn starch and produced in France, Actifiber® supports the growing demand for healthier, more natural products. With fibre intake still below
recommended levels and a rising number of European consumers relying on Nutri- Score to gauge nutritional quality, the ingredient offers manufacturers a practical way to enhance daily fibre
6 • KENNEDY’S CONFECTION • NOVEMBER 2025
consumption. “Through launching Actifiber®, Tereos supports its customers in the transition towards creating healthier and more natural eating habits,” said Marion Hoff, Sales Director Europe. Actifiber® is a soluble,
neutral-tasting fibre suitable for beverages, bakery, cereals, confectionery, chocolate, dairy and vegan applications. Its clarity and ease of formulation allow it to integrate seamlessly into existing recipes without altering flavour or colour. “This ingredient enhances the nutritional value of products without altering their taste, a true breakthrough for the food industry,” said Michel Flambeau, Director of the Customer Innovation Centre.
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