Mondelēz China executives reportedly questioned in e-commerce investigation

Two senior executives at Mondelēz China have reportedly been questioned in connection with an alleged e-commerce investigation, according to sources close to the matter and multiple Chinese media and social media outlets—including Nanduwan Finance, Finance China, and Jiemian News.

Mondelēz China confirmed to Campaign in a statement there is an ongoing investigation but did not provide specific details. A spokesperson stated: "Mondelēz China adheres to high standards of compliance. To this end, Mondelēz China has reported a possible issue to relevant authorities given that parties outside of Mondelēz are involved.  We are working with authorities and relevant employees have been placed on administrative leave pending investigation results.”

The executives as named by several of the aforementioned outlets and sources are said to be Grace Zhu (Zhu Yijing), vice president of marketing and development for Mondelēz Greater China, and Simon Xiu (Xiu Zerong) director of e-commerce at Mondelēz China. Both were reportedly “taken away” for questioning last Friday (July 26).

An impromptu meeting was then reportedly held by Mondelēz to discuss the matter.

According to LinkedIn, Zhu joined Mondelēz China in May 2019 and has been responsible for marketing, consumer insights, e-commerce and catering channels. Prior to this, she worked at Nielsen and PepsiCo. Meanwhile Xiu, with 20 years of experience in the fast-moving consumer goods industry, is responsible for the e-commerce business at Mondelēz China.

When asked by Campaign to confirm the names reported by other outlets, Mondelēz said they could not comment further.

Additionally, an unverified WeChat screenshot posted on Friday by an alleged industry source detailed a possible sequence of events—initially also naming Publicis in the incident and claiming they were contacted by the company as well. However, a spokesperson from the Groupe denied any involvement in a statement to Campaign.

“We deny our involvement in this matter and it is incorrect that we have been contacted on this matter. Publicis Groupe China currently handles media excluding e-commerce and creative for selective brands.”

According to Mondelēz’s statement and reported sources however, there is still the possibility of involvement by other third-party companies handling e-commerce.

Mondelēz International is a leading global snack manufacturer, and owns several well-known brands such as Cadbury, Milka Chocolate, Jacobs Coffee, LU Biscuits, Nabisco and Oreo Cookies, Tang, and Trident Chewing Gum. In 2023, Mondelēz International reported a global net revenue of $36.02 billion, reflecting a 14.35% increase compared to the previous year.

According to Jiemian News, sources told the outlet the investigation is alleged to be linked to issues arising from “expense management” and “channel confusion”—said to be common in large FMCG firms. The reports also cite that the dominance of traditional channels, such as canteens and mom-and-pop shops, and high operational costs in China, can further contribute to these problems—creating opportunities for grey income generation. These governance issues can be overlooked during growth periods, but tend to surface during weaker ones.

There has been a recent crackdown in China on matters of corruption and business misconduct, exemplified by several high-profile cases. In January 2023, a senior marketing executive at Genki Forest was detained for corruption, highlighting issues within the company's management​. Similarly, the GroupM scandal in October last year saw several executives detained on charges of bribery, shedding light on unethical practices within the media sector​. Last month, the Financial Times reported Adidas had also been investigating alleged large-scale bribery by its staff in China potentially “involving millions of Euros.” These incidents reflect the broader efforts by Chinese authorities to enforce stricter compliance and ethical standards across various industries.

More as the story develops.