Background: Mondelez is the global snacking giant behind major brands like Cadbury, Oreo, Ritz, Toblerone, and Sour Patch Kids. A large portion of Cadbury chocolates sold in Australia are actually produced in Hobart, home to one of the largest chocolate factories in the Southern Hemisphere.  

What happened: Mondelez Australia has reported $2.3 billion in revenue for 2025, up nearly 7% from the previous year. Profit also climbed 8% to almost $99 million. One of the biggest growth drivers? Cadbury's Biscoff collaboration.

What else: Despite the strong growth, Cadbury's Austraian boss has warned that costs are rising quickly. Mondelez says inflationary pressures are still a concern, in particular, with Australia's stagnating productivity. So profitability could face pressure even as sales remain strong.  

What's the key learning?

💡 Australia is getting less efficient at making stuff, and it's starting to show up in your grocery bill. Labour productivity is currently sitting at around 2016 levels, meaning despite advances in technology, Australia is producing roughly the same output as nearly a decade ago.

💡 Over the past decade, wages, logistics, and energy costs have all increased, but we haven't made the efficiency gains to offset them. So this has added pressure across the economy and, ultimately, on consumer prices.

💡In fact, both the Reserve Bank of Australia and Treasury have flagged weak productivity as a long-term risk, with growth averaging just 1.1% annually in the decade to 2023 - down from nearly 3% in the late 1990s. So, shrinkflation on Biscoff Cadbury blocks isn't just a squeeze for profits - it’s Australia’s productivity failing to keep up.