Our analysis suggests Mondelēz may be underprepared for EUDR. The company lobbied for a 12-month delay last year, a stance several peers opposed, including Nestlé, Tony's Chocolonely and Ferrero.
Its mass balance approach to cocoa sourcing appears hard to reconcile with EUDR's strict geolocation-based traceability rules, and shifting away from this approach could be costly. Despite Europe generating around 36% of net revenues, Mondelēz's Q2 results barely mentioned EUDR, even though non-compliance risks maximum fines of at least 4% of annual EU turnover.
AFII's Bond Horizon tool flags Mondelēz as likely to issue within three months – a timely window for investor engagement.
