Mondelez International Inc (MDLZ)

History and Background

Mondelez International Inc. was founded in 2012 as a spin-off from Kraft Foods Inc. It inherited Kraft's global snacks and food brands, focusing on biscuits, chocolate, gum, candy, and cheese. Its evolution involves strategic acquisitions and a focus on high-growth emerging markets.

Core Business Areas

• Snacks: Includes biscuits, chocolate, gum & candy. This segment focuses on convenient and indulgent treats for global consumers.
• Europe: Handles the sales and marketing of Mondelez's products within the European market, adapting to local consumer preferences.
• North America: Manages operations in the North American market, targeting local consumer needs and trends.
• Asia, Middle East & Africa (AMEA): Focuses on expanding market share and sales in the rapidly growing AMEA region.
• Latin America: Oversees sales and production operations in Latin America, adjusting products for local tastes.

Leadership and Structure

Dirk Van de Put serves as Chairman and CEO. The organizational structure is based on geographical regions (Europe, North America, AMEA, Latin America) and global functions (marketing, supply chain, finance).

Key Offerings

• Oreo: Oreo is a leading cookie brand globally. Dominates the global cookie market, a competitor to Keebler (acquired by Ferrero) and other private label brands. Market share around 20% within the cookie segment, depending on the region. Generates Billions in revenue.
• Cadbury: Cadbury is a major chocolate brand. Competes primarily with Mars, Hershey (HSY), and Nestle (NESN). Market share in the chocolate confectionery market is significant, varying by region, but often places it among the top three brands. Generates Billions in revenue.
• Trident: Trident is a leading chewing gum brand. Competes with brands like Wrigley's (Mars) and other gum products. Commands a significant share of the chewing gum market globally, revenue in the hundreds of millions.
• Ritz: Ritz is a leading cracker brand. Primary competitors include Keebler (Ferrero) and Nabisco brands. Strong revenue globally. Number 1 in the cracker segment in multiple regions, particularly in North America.

Industry Overview

The snacking industry is driven by consumer trends toward convenience and indulgence. It is characterized by strong brand recognition and diverse product offerings.

Positioning

Mondelez International Inc is positioned as a global leader in the snacking industry, leveraging its iconic brands and distribution network for competitive advantage.

Total Addressable Market (TAM)

The global snack food market is expected to reach over $700 billion. Mondelez is positioned to capture a significant portion of the TAM leveraging its global brand portfolio.

Key Competitors

• Nestle (NESN)
• PepsiCo (PEP)
• The Hershey Company (HSY)

Competitive Landscape

Mondelez International Inc competes effectively with rivals through brand recognition, a robust distribution system, and ongoing innovation; however, competitors also possess significant scale and market dominance.

Chipita S.A.

• Year: 2021
• Acquisition Price (USD millions): 2000
• Strategic Rationale: Expansion of Mondelezu2019s bakery and pastry portfolio in Central and Eastern Europe.

Ricolino

• Year: 2022
• Acquisition Price (USD millions): 1300
• Strategic Rationale: Strengthen Mondelezu2019s market in Mexico and the US.

Historical Growth: Mondelez has grown through organic growth and strategic acquisitions. Revenue growth has averaged around 3-5% annually.

Future Projections: Analysts project revenue growth of 3-6% annually over the next 3-5 years. EPS is expected to grow at a faster rate due to cost-cutting initiatives.

Recent Initiatives: Recent initiatives include acquisitions of smaller snack brands, expansion in emerging markets, and investments in e-commerce platforms.

Mondelez International is a strong player in the snacking industry, benefiting from its iconic brands and global reach. Its consistent financial performance is driven by solid revenue growth and efficient operations. However, the company faces threats from shifting consumer preferences and supply chain vulnerabilities. Mondelez must continue to innovate and adapt to maintain its competitive edge.

Data Sources:

• Company Filings (10K, 10Q), Investor Presentations, Market Research Reports, Analyst Estimates

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual due diligence and consultation with a financial professional. Market data is subject to change.