Mondelez 2014 Annual Report Download - page 16

Table of Contents
If we do not effectively respond to retail consolidation, increasing retail power and competition from retailer and other economy
brands, our reputation, product sales, financial condition and results of operations could be materially and adversely affected.
We are subject to and may fail to manage changes in our relationships with significant customers or suppliers.
During 2014, our five largest customers accounted for 15.7% of our net revenues. There can be no assurance that our customers
will continue to purchase our products in the same mix or quantities or on the same terms as in the past, particularly as increasingly
powerful retailers continue to demand lower pricing and develop their own brands. The loss of or disruptions related to significant
customers, such as the disruptions we experienced in 2014 with customers in France, could result in a material reduction in sales
or change in the mix of products we sell to a significant customer. This could materially and adversely affect our product sales,
financial condition and results of operations.
Additionally, disputes with significant suppliers, including those related to pricing or performance, could adversely affect our ability
to supply products to our customers and could materially and adversely affect our product sales, financial condition and results of
operations.
We may decide or be required to recall products or be subjected to product liability claims.
We could decide, or laws or regulations could require us, to recall products due to suspected or confirmed product contamination,
spoilage or other adulteration, product misbranding or product tampering. In addition, if another company recalls or experiences
negative publicity related to a product in a category in which we compete, consumers might reduce their overall consumption of
products in this category. Any of these events could materially and adversely affect our reputation, product sales, financial condition
and results of operations.
We may also suffer losses if our products or operations violate applicable laws or regulations, or if our products cause injury, illness
or death. In addition, our marketing could face claims of false or deceptive advertising or other criticism. A significant product
liability or other legal judgment against us, a related regulatory enforcement action or a widespread product recall could materially
and adversely affect our reputation and profitability. Moreover, even if a product liability or consumer fraud claim is unsuccessful,
has no merit or is not pursued, the negative publicity surrounding assertions against our products or processes could materially and
adversely affect our reputation, product sales, financial condition and results of operations.
We could be subject to legal or tax claims or other regulatory enforcement actions.
We are a large food and snacking company operating in highly regulated environments and constantly evolving legal, tax and
regulatory frameworks around the world. Consequently, we are subject to greater risk of litigation, legal or tax claims or other
regulatory enforcement actions. There can be no assurance that our employees, contractors or agents will not violate policies and
procedures we have implemented to promote compliance with existing laws and regulations. Moreover, our failure to maintain
effective control environment processes could lead to violations, unintentional or otherwise, of laws and regulations. Litigation, legal
or tax claims or regulatory enforcement actions arising out of our failure or alleged failure to comply with applicable laws,
regulations or controls could subject us to civil and criminal penalties that could materially and adversely affect our reputation,
product sales, financial condition and results of operations.
We may not successfully identify, complete or manage strategic transactions.
We evaluate a variety of potential strategic transactions, including acquisitions, divestitures, joint ventures, minority investments
and other strategic alliances that could further our strategic business objectives. We may not successfully identify, complete or
manage the risks presented by these strategic transactions. Strategic transactions may result in the diversion of management
attention from our existing business and may present financial, managerial and operational risks. Our success depends, in part,
upon our ability to identify suitable transactions; negotiate favorable contractual terms; comply with applicable regulations and
receive necessary consents, clearances and approvals (including regulatory and antitrust clearances and approvals); integrate or
separate businesses; realize the full extent of the benefits, cost savings or synergies presented by strategic transactions; effectively
implement control environment processes with employees joining us as a result of a transaction; minimize adverse effects on
existing business relationships with suppliers and customers; achieve accurate estimates of fair value; minimize potential loss of
customers or key employees; and minimize indemnities and potential disputes with buyers, sellers and strategic partners.
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