Oreo maker Mondelez raises sales forecast as emerging markets fuel growth

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Oreo maker Mondelez raises sales forecast as emerging markets fuel growth

(Reuters) - Mondelez International Inc (MDLZ.O) raised its 2019 sales forecast on Tuesday, benefiting from several years of tailoring its chocolates and cookies to cater to consumer tastes in emerging markets such as China and India.

However, the company warned that a hard Brexit could require it to make changes to its prices and sourcing. Mondelez has been aggressively investing in marketing and molding its products to attract consumers in emerging markets where rising demand for its Cadbury chocolates and Oreo cookies has countered sluggish sales in developed countries.

The company has previously told Reuters that “the big bulk” of a $150 million increase in global investment this year - the first hike in five years - will be in rural India.

The efforts lifted the company’s second-quarter organic sales, which exclude the impact from acquisitions and currency changes, 7.6% in emerging markets.

China, India, Southeast Asia, Russia and Mexico were among the biggest drivers of that growth, company executives said on a post-earnings call with analysts.