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Stephen Maher

president of Mondelez China

A1:

With 1.4 billion consumers and a rapidly growing middle class, China is a very important market for Mondelez. Despite the short-term challenge of rising costs, Mondelez has a long-term vision in China, and our commitment remains strong.

A2:

We have a strong commitment to China. The majority of Mondelez China's products are domestically produced, with many of the ingredients sourced locally. Yuan depreciation therefore does not have a significant impact on our business here.

Mondelez is committed to bringing our other global brands to Chinese consumers and to expanding our footprint in China. We need to expand into Tier 3 and Tier 4 cities profitably. We need to collaborate with our customers to drive increased efficiencies.

A3:

We appreciate the government's continued efforts to increase transparency and rule by law. From a policymaking perspective, we expect to see continuous open dialogue between regulators and industries, which will contribute to science-based legislation.

From an enforcement perspective, China is a big country and there are often varied interpretations by local law enforcers on policies developed by central regulators. This will cause confusion in companies that are generally working within a framework that is compliant. We would call for a mechanism to be built through which the central regulators are able to make final clarifications or decisions when such disputes arise.

A4:

Our challenges continue to be three major areas:

1. Do we have the right customer profile to reach our consumers despite the changes in shopping behavior and locations?

2. Do we have the right product portfolio to keep pace with the changing dynamics of the demographics, a growing middle class?

3. Do we have the right size of organization and organization skills to meet the rapid market changes in competitive customer channels and our supply chain?

Dealing with these challenges is what makes China the most exciting market in the world. We are constantly investing in R&D and corporate and functional training, and spending time in the market listening to our customers, our suppliers and local government and community groups.

A5:

It is indeed a global village where we are all connected - by business, by operations or by friends and families. With a new environment and a new group of consumers, there will always be differences; and through differences, we see the wonder of diversity.

As an Australian in China working in a global company, I am a firm believer in embracing diversity and change. Observe the differences, listen to others' voices and then develop a strategy that fits to win in the long run.

For those Chinese companies looking to expand overseas, be prepared to work with local partners in the early stages and share experiences and profits.