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Snacking is recession proof, Mondelēz CEO tells us why

Consumer brands like Mondelēz, PepsiCo (PEP) and Campbell Soup Company (CPB) all proved pricing power was here to stay this results season. Mondelēz CEO Dirk Van de Put told Yahoo Finance Live that during the pandemic, consumers "got used to" snacking. "It's clear that they're attached to it," he said.

Van de Put adds that because of the comfort level developed with these brands, consumers haven't been deterred by price hikes. "The average consumer now already snacks three times a day, and the percentage of people doing that is about 78%," he explains.

Mondelēz (MDLZ) CEO Dirk Van de Put explains the price hikes further in his full interview with Yahoo Finance's Executive Editor Brian Sozzi at this year's Milken Institute Global Conference.

Key Video Moments:

00:00:04 - Consumers got used to snacking

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00:00:29 - Consumers are "attached" to snacking

00:01:05 - Consumers snack three times a day

Video transcript

DIRK VAN DE PUT: It started during the pandemic, where the consumer sitting at home got used to have regularly a snack-- they needed it, or to share with the kids, or to calm themselves down a little bit in a time of distress. And the habit got installed. Consumers are still spending a lot of time at home.

They got used to the brands. They got used to the product. So now when the inflation comes and prices start to increase, it's clear that they are attached to it and that they don't feel like they want to give that up. So that's the fundamentals of what's going on.

You also have two new generations, millennials and Generation Z, taking more and more of a percentage of the consumption. And they eat in a completely different way. They're not three meals a day type of thinkers. So those two combined, that's really what's causing the success of snacks.

BRIAN SOZZI: The amount of data that you must have on consumers must be mindblowing. So what you're saying is that maybe this next generation of people in this country, not eating dinner, just snacking more throughout the day?

DIRK VAN DE PUT: Yeah. Yes. The average consumer now already snacks three times a day. And the percentage of people that's doing that is about 78%. So yeah, we clearly see that habit going up.