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Mondelēz International—this name may not ring a bell immediately, but the chances are high that you’ve consumed its products on more than one occasion. With a global net revenue of $36 billion in 2023, Mondelēz International has indubitably sweetened lives around the world. The company’s timeless brands—ranging from Oreo and Cadbury to Trident and Ritz—have allowed Mondelēz to become a leading player in snacks worldwide.
How did Mondelēz start?
Mondelēz International’s inception traces back to the 19th century, to a time when its brand Cadbury was born in England and Kraft Foods started its journey in the United States. Philip Morris Companies Inc. (now Altria) acquired Kraft Foods in 1988, creating a highly diversified conglomerate stretching from food products to consumer staples. In 2007, Kraft Foods, Altria’s subsidiary, became a fully independent company focused entirely on the food industry.
The creation of Mondelēz was pronounced in 2012 when Kraft Foods announced plans to split into two publicly traded companies – one focusing on the North American grocery business, retaining the Kraft Foods name, and the other focusing on the global snack food business, coined as Mondelēz International. The name ‘Mondelēz’ was coined by combining the words for ‘world’ and ‘delicious’ in romance languages, reflecting the company’s global approach to providing delectable treats.
What are the biggest brands of Mondelēz?
With a track record of more than a hundred years in business, Mondelēz International has successfully reached out to consumers on a global scale. The company owns some of the world’s most well-known and loved snack brands.
Oreo, one of Mondelēz’s top brands, is reportedly the world’s bestselling cookie, enticing consumers with its sweet, creamy center sandwiched between two chocolate-flavored wafers. Cadbury, another flagship brand, offers a variety of chocolates and sweets and is known for having one of the richest heritages among Mondelēz’s brand portfolio, dating back to 1824. The renowned Belvita breakfast biscuits, Philadelphia cream cheese, and Trident gums are also part of this massive conglomerate – thus adding to the company’s impressive lineup of snacks.
Why is Mondelēz International successful?
Mondelēz International’s success attributes to their innovative approach in refining their product portfolio, aggressive marketing strategies, and in-depth understanding of consumer tastes and preferences around the globe. By consistently innovating and renovating their products, Mondelēz keeps consumer interest alive, catering to evolving tastes while carefully respecting and preserving the heritage of their brands.
The company also emphasizes sustainability and socio-economic impacts. Mondelēz International’s “Impact For Growth” strategy focuses on areas where it can make the most significant difference and drive meaningful improvements on issues like mindful snacking, sustainable ingredients, reduced environmental impact, and empowered communities. The company’s proactive and responsible approach to its global operations has positioned it favorably among consumers and stakeholders, thus contributing significantly to Mondelēz’s long-term success.
The story of Mondelēz International so far shows a firm rooted in innovation, brand-love, and an unwavering commitment to satisfying the world’s snack cravings. The years ahead undoubtedly hold an exciting journey as the company continues to shape the future of snacking for consumers worldwide.
Why did Kraft become Mondelez?
Kraft’s journey towards becoming Mondelēz International can be traced back to its roots and a series of strategic moves. In 1988, Phillip Morris Companies Inc, now known as Altria Group, bought Kraft for $13.1 billion, merging it with General Foods. The merge created Kraft General Foods, but the name was later shortened to Kraft Foods in 1995.
Towards the end of the 2000s, Kraft Foods embarked on a transformation journey leading to its split into two independent public companies – Kraft Foods Group, focusing on grocery products in North America, and a globally-oriented Mondelēz International with a focus on snack foods. The split occurred in 2012, heralding a new era for the confectionary and snack mammoth.
The name Mondelēz International was born out of a company-wide employee contest. It’s a combination of the words ‘monde’, derived from the Latin world for ‘world’, and ‘delez’, a fanciful expression of ‘delicious’. Under its new identity, Mondelēz International continues to prosper as a preeminent player in the global snack industry.
What is Mondelēz International’s competitive advantage?
The competitive advantage of Mondelēz International comes from its expansive portfolio of leading brands, robust distribution networks, and relentless focus on growth niches within the snacking industry. With some of the world’s favorite brands including Oreo, Cadbury, and Trident Gum, Mondelēz International commands significant consumer loyalty and market share.
Further, Mondelēz’s wide geographical presence, reaching over 150 countries, and strong distribution channels enable the company to take advantage of economies of scale, penetrate new markets, and mitigate risks associated with dependence on a single market.
Moreover, the company’s acquisitions and investments in growth markets, as well as its dedication to cost optimization and innovation, have contributed to its strength in the competitive snack industry. For instance, Mondelēz’s investment in product innovations such as ‘better-for-you’ snacks resonates with the growing consumer demand for healthy and convenient snack options.
What is the long-term algorithm for Mondelēz International?
Mondelēz International’s long-term algorithm is anchored in their strategic plan for sustainable growth. The multi-faceted plan is based on: a pronounced focus on top-line growth; enhancing margins through efficiency and scale; and allocating resources effectively to generate good returns and cash flow.
The company’s focus on top-line growth is brought to life through volume-driven revenue growth, strengthening the core, and increasing their play in the faster-growing snack sectors. In parallel, Mondelēz enriches margins by optimizing costs, increasing prices judiciously, and improving mix. Resource allocation is geared toward high-return capital investment, funding strategic acquisitions and partnerships, and returning cash to shareholders.
In essence, Mondelēz International’s long-term algorithm is designed to drive both growth and efficiency, reinforcing their position as a leading player in the global snacking industry while delivering consistent and attractive returns for shareholders.
What companies has Mondelez acquired?
Mondelez International, Incorporated, a multinational food and beverage conglomerate, has a history of acquiring various renowned companies, helping it earn its place as a leading player in the field. Some notable acquisitions include Nabisco, Cadbury, LU Biscuit from Danone, and Kinh Do Corporation’s snack business.
In 2000, Kraft Foods, the precursor to Mondelez International, acquired Nabisco, a reputed American manufacturer of cookies and snacks. Significant brands like Oreo, Chips Ahoy!, and Ritz crackers became part of Kraft’s broad portfolio, thus augmenting the company’s reach in the global market.
2007 marked another milestone as Kraft purchased LU Biscuit, a French biscuit manufacturer, from Danone. LU’s extensive reach in European markets vastly strengthened Kraft’s foothold in the continent.
The year 2010 saw Kraft’s marquee acquisition of Cadbury, a prominent British confectionery company for $19.7 billion. This move armed Kraft (later becoming Mondelez) with popular brands like Dairy Milk Chocolate, Roses, and Creme Egg, thus deepening the company’s penetration into the confectionery market.
2015 saw Mondelez making strides into the emerging Asian market with its strategic acquisition of Vietnam-based Kinh Do Corporation’s snack business. It provided Mondelez with an effective platform for reaching millions of customers in the Southeast Asian market.
What is Mondelez International goal?
Mondelez International aims to lead the future of snacking by offering the right snack, for the right moment, made the right way. The company seeks to make snacking not just enjoyable, but also sustainable and mindful. The goal is to make brands that people love whilst reducing the environmental footprint and fostering a positive societal impact.
From a financial perspective, Mondelez aims to drive operational excellence by increasing efficiency and generating robust earnings growth. The company also seeks to maximize shareholder value by driving balanced top-line and bottom-line growth, backed by strong cash generation.
Cocoa Life: Mondelez International’s Global Sustainability Program
Mondelez International is committed not just to corporate growth, but also to creating a positive impact on the world. Cocoa Life, its global sustainability program, exemplifies this commitment remarkably. Launched in 2012, this program targets the challenges facing the cocoa industry, including low productivity, poverty, and deforestation.
Cocoa Life partners with cocoa communities, aiding in training farmers, improving access to education, empowering women, and advocating for child protection. The program aims to build a safer, more sustainable cocoa supply chain, where cocoa farming communities thrive and nature is protected.
As of 2020, Cocoa Life has had a positive impact on over 175,000 farmers in over 2,000 communities, and has helped to sustainably source all the cocoa for Cadbury products in the UK and Ireland, as well as 63% of Mondelez International’s total cocoa volume.
To conclude, Mondelez International has come a long way. From acquiring renowned companies like Cadbury and Nabisco to striving to make a positive impact through initiatives like Cocoa Life, it continually proves its commitment to its consumers, people, and the planet. Sabha Kpath, the digital and strategy head of Mondelez, said it well when he stated, “Our purpose is to empower people to snack right. We will lead the future of snacking by offering the right snack, for the right moment, made the right way.” With their innovative strategies and proven track record, Mondelez International looks set to continue its sweet success story in the future.