Tag Archives: Mondelez International

Peltz Pushes Tie-Up Between Pepsi And Mondelez

By Steve Schaefer, Forbes Staff

A few years back Nelson Peltz helped drive Kraft and Cadbury together, putting the wheels in motion for the ultimate breakup of the former. Now, the billionaire is trying to run the same playbook on two current holdings: PepsiCo and the former Kraft, Mondelez International. …read more

Source: FULL ARTICLE at Forbes Latest

The 3 Silliest Company Name Changes Ever

By Dan Caplinger, The Motley Fool

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The best companies in the world invest huge amounts of money and energy into building name awareness. The right name can be worth tens of billions of dollars to a company, making it all the more important for companies to make the best choice.

Often, though, companies pick what seem on the surface to be ill-considered new names. Inspired by Thursday’s announcement from Coinstar to seek shareholder approval to change its name to Outerwall, here’s a list of five company name changes that earned criticism and even outright mockery when they were first proposed.

2001: Altria
In late 2001, the company then known as Philip Morris made a proposal to change its name to Altria. The origin of the name was founded in the Latin word “altus,” meaning “high,” and was meant to associate the company with peak performance. The “tri” embedded in the name also emphasized the fact that the company at the time had three distinct divisions: domestic tobacco, international tobacco, and its Kraft Foods beverage and food division.

Image copyright Altria Group.

The name change reflected the company’s wish to have consumers and investors see beyond its tobacco business, which at the time was plagued by more substantial legal battles with billions in potential liability hanging in the balance. Shareholders approved the name change in 2002. The irony, of course, is that Altria has since spun off both Kraft and its Philip Morris International global tobacco divisions, leaving Altria holding the old core Philip Morris USA division.

2011: Qwikster
Fortunately, this name change never actually took place, but for the short period that Netflix considered it, Qwikster caused both an uproar among customers and a crisis of confidence for Netflix investors. The idea was to separate out Netflix’s legacy DVD business from its faster-growing, higher-potential video streaming business and rename the DVD-delivery company Qwikster, with the streaming business keeping the Netflix name.

Image: Wikimedia Commons, photographed by user Coolcaesar.

But coming on the heels of a bungled rate-increase announcement that sent costs up as much as 60% for users who wanted to keep both services, the proposed Qwikster name became closely affiliated with the misstep. The stock also plunged, losing half its value — more than $100 per share — in less than a month from the time of the rate increase to the time Netflix backed away from the proposal.

2012: Mondelez International
Kraft has been associated with two different name-change controversies. Last year, the company broke into two parts, with its North American grocery division keeping the legacy Kraft name while its global snack-food business changed its name to Mondelez International . In explaining the change, the company said that Mondelez “is a newly coined word that evokes the idea of a world of ‘delicious products.'”

The company helped come up with the idea by having an

Source: FULL ARTICLE at DailyFinance

Kraft Foods Group Looks Tasty To $55

By Trefis Team, Contributor

In October 2012, Kraft Foods split into Mondelez International and Kraft Foods Group. Mondelez International operates the international snacks business of the parent company with annual revenues to the tune of $32 billion, including popular brands such as Oreo cookies, Trident gum and Cadbury chocolates. Kraft Foods Group manages operations in North America with annual revenues of around $18 billion.

From: http://www.forbes.com/sites/greatspeculations/2013/04/18/kraft-foods-group-looks-tasty-to-55/

Mondelez: Could More Risk Lead to Greatness?

By Asit Sharma, The Motley Fool

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It may seem curious to investors of a certain stripe that Mondelez International spun off its Kraft grocery business in October of last year in order to shoot for long-term organic revenue growth of 5% to 7%. But among mature global food and beverage companies, this type of expansion is often considered ambitious. For example, competitor Campbell Soup grew its international snack and baking business by only 2% in fiscal 2012. Surprisingly, Mondelez has had some trouble hitting its targets in its first two quarters as an unchained $35 billion powerhouse. After posting organic revenue growth of only 4.4% in 2012, will the company find its momentum in 2013?

The soft spots
Industry trends including soft gum and candy sales, and lower coffee pricing (due to recent bumper crops), have weighed on Mondelez’s near-term results. The company’s revenue growth will hover around the “low end of the five to seven [percent] range” for the time being, according to CFO Dave Brearton. Management has indicated that it is not so concerned with one-off events such as the weakness in coffee prices, and has affirmed that it will make up for lost ground in the back half of 2013. Yet investors would like to know that Mondelez can consistently scale its revenue regardless of the headwind of the moment.

The growth sweet spot
The fuel for Mondelez’s future growth will likely be found at the intersection of the following three themes: power brands, developing markets, and the categories of biscuits (i.e., cookies and crackers) and chocolates. In essence, the biggest and most loved brands, sold in the fastest-growing developing markets (such as China and India), within the two categories that represent almost 60% of Mondelez’s business.

Mondelez currently has nine billion-dollar brands (including names such as Oreo and Cadbury), and its power brand portfolio boasts a growth rate of 8% — almost double the company’s overall growth rate. In developing markets, power brands are growing at an annual rate of almost 20%. Economists tell us that “power brands” evoke a high degree of loyalty and emotion from customers. Thus, they tend to be more price-inelastic than regular goods — that is, consumers will stomach higher prices for their favorite brands versus goods to which they are not attached (and for which many substitutes are exist). So it makes sense to invest in these brands at the expense of weaker products:

 
 

An abundance of caution?
While the idea of allocating resources to killer products is already a staple of Mondelez’s business plan, the company may need to push beyond its comfort zone and somewhat overload its marketing investment in these brands. Mondelez is admirably disciplined on the operational side. It improved operating income margin by 110 basis points from 2010 to 2012. By its own calculation, Mondelez showed the most improvement in this metric within a peer group that included Hershey , Unilever , and Nestle . …read more

Source: FULL ARTICLE at DailyFinance

The Cookie Crumbles: Can Mondelez Find Its Mojo?

By Jenna Goudreau, Forbes Staff

It’s a bright, warm February day in Boca Raton, Fla., but Irene Rosenfeld doesn’t look happy. At an industry conference one week after reporting disappointing fourth-quarter results, the chairman and CEO of Mondelez International, formerly Kraft Foods, is defending her new company under a barrage of questions from irritated financial analysts. One wants to know what’s really changed after the spinoff. Another barks: “You said you’re getting frustrated? Well, we’re getting frustrated, too.” Yet another wants to know why she didn’t disclose before the earnings release that the company was having execution issues in Brazil and Russia. Beneath her no-fuss cropped red haircut and chic white blazer, her mouth hardens into a thin, straight line. “I deeply regret it impacted my credibility with you, but I don’t know what else could have been done,” she says. “The long-term prospects are quite robust.” …read more
Source: FULL ARTICLE at Forbes Latest

Profit From Items We All Need to Buy

By Selena Maranjian, The Motley Fool

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Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some consumer-staple stocks to your portfolio, the Consumer Staples Select Sector SPDR could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF’s expense ratio — its annual fee — is a very low 0.18 %. It recently yielded 2.8%, too.

This ETF has performed well, beating the world market over the past three, five, and 10 years. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why consumer staples?
By definition, staples are items that we tend to buy no matter what the economy is doing. That makes companies making or selling staples attractive, as they add a defensive element to a portfolio, bolstering it in downturns.

More than a handful of consumer-staple companies had solid performances over the past year. Purchases of cigarettes are non-optional to most smokers, as they’re addicted to them, and that helped Altria and Philip Morris International advance 18% and 11%, respectively. (The stocks yield 5.2% and 3.7%, respectively, too.) The latter is a spin-off of the former, focusing on sales outside the U.S., where the growth potential is higher and regulations and restrictions often lower. In the U.S., Altria faces a shrinking base of smokers and various other challenges such as anti-smoking campaigns and a possible ban of menthol cigarettes. Still, it’s been growing.

Philip Morris has a new CEO, and one of its recent promising developments is news that tobacco might be used in flu vaccines. Meanwhile, though, it’s being hurt by a strong dollar but should eventually get a boost from a recovering Europe.

Sysco , leading in the delivery of food products to restaurants and other institutions, gained 18%, for example, and recently yielded 3.3%. The stock is near its 52-week high, despite challenges from weak restaurant traffic and rising food costs, but our improving economy should help. Meanwhile, it’s a dividend titan and has been able to maintain its profit margins while cutting costs. It’s planning to expand internationally, too. Sysco isn’t likely to be a rapid grower, but it can be a relatively steady performer for you.

Mondelez International , spun off from Kraft to focus on the international arena, gained 14%. It’s able to grow faster than its North American counterpart, as many foreign economies are developing and more dynamic than the established first world. The company recently announced plans to buy back up to $1.2 billion worth of shares, though that …read more
Source: FULL ARTICLE at DailyFinance

Mondelez Declares Dividend, Authorizes Share Buybacks

By Eric Volkman, The Motley Fool

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Mondelez International‘s first quarterly dividend for 2013 will match its previous payout, and the snacks and sweets giant has also OK‘d a share-buyback program. The company will hand out $0.13 per share of its common Class A stock on April 15 to shareholders of record as of April 1. The company paid its previous disbursement last December.

The just-declared dividend annualizes to $0.52 per share, which yields 1.8% at Mondelez’s current stock price of $28.47.

The main objective of the share-buyback program is to offset dilution from its equity compensation plans. The authorization covers the buyback of up to 40 million shares or $1.2 billion worth of common Class A stock, whichever is the lesser amount.

The article Mondelez Declares Dividend, Authorizes Share Buybacks originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in Mondelez International. The Motley Fool has no position in Mondelez International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Dr Pepper Snapple Reacquires Asia-Pacific Distribution Rights From Mondelez

By Eric Volkman, The Motley Fool

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Dr Pepper Snapple has agreed to a deal with Mondelez International to reacquire distribution rights for several brands in certain Asia-Pacific markets.

The deal chiefly concerns the Snapple line of beverages, which Dr Pepper Snapple will have the right to distribute in Australia, Malaysia, Singapore, China, Hong Kong, Japan, and South Korea. The company will also hold such rights for Mott’s, Mr & Mrs T, Clamato, Mistic, Holland House, and Yoo-hoo in Australia.

In the press release announcing the news, Dr Pepper Snapple didn’t disclose the terms of the agreement. It added that it “does not anticipate that the acquisition will have any material effect on its 2013 financial results.”

The article Dr Pepper Snapple Reacquires Asia-Pacific Distribution Rights From Mondelez originally appeared on Fool.com.

Fool contributor Eric Volkman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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How Kraft Got Its Innovation Groove Back

By Jenna Goudreau, Forbes Staff

Kraft Foods Group has spent the last three years getting its innovation groove back, company leaders said today at the annual Consumer Analyst Group of New York (CAGNY) Conference in Boca Raton, Fla. The $18-billion-in-revenues food products company with iconic brands like Maxwell House, Oscar Mayer and JELL-O became an independent company last October after a corporate split of legacy Kraft’s North American grocery business and its global snacking business, which is now called Mondelez International. …read more
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Behind The Scenes Of Oreo's Real-Time Super Bowl Slam Dunk

By Jennifer Rooney, Forbes Staff Last night, Oreo hit it big with a real-time marketing effort that became the talk–and tweet–of the Super Bowl. The “you can still dunk in the dark” tweet was retweeted almost 15,000 times. Oreo’s Twitter following, meanwhile, increased by about 8,000. The blackout post garnered nearly 20,000 likes on Facebook. And Oreo went from having 2,000 Instagram followers pre-game to 36,000, with more than 16,000 pictures submitted by consumers as votes for “Cookie” or “Creme,” tying to their Super Bowl ad-spurred seven-week contest for the best part of the Oreo, a Mondelez International brand.
Source: FULL ARTICLE at Forbes Latest