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Kraft’s Mondelez spin-off looks to robust BRIC growth

The developing markets of Brazil, Russia, India and China will drive sales for Kraft’s global snacks business, Mondelez International, according to CEO Irene Rosenfeld.

Speaking at a Boston conference last week ahead of Kraft Foods’ spilt into a global snacks business (Mondelez International) and a North American grocery business (Kraft Foods Group) on 1 October, she said the forecast was for 5-7% sales growth in 2013 and in the long-term for Mondelez, which the company claims will become the category leader in biscuits, chocolate and candy, and number two in gum.

Mondelez will start with $36bn in revenues.

Mondelez marketsMondelez has identified three cluster markets that will form its sales strategy: Developing markets, Next Wave markets and Scale Markets.

‘Developing Markets’ focus on the high-growth BRIC countries, ‘Next Wave’ markets are other high growth regions in the Middle East and Africa and Indonesia , while ‘Scale Markets’ are developed markets with good growth prospects such as Australia, Central Europe, Mexico and Japan.

“Our growth will be broad based but the bulk will be from developing markets,” said Rosenfeld.

“Developing markets represent about 44% of our revenue and we expect that contribution to increase over time,” she continued.

Rosenfeld said that Mondelez would have the fifth largest revenue percentage coming from developing markets behind Unilever, Danone, Colgate and Coca Cola. This analysis puts Mondelez’s rank in developing markets just ahead of rival Nestlé and gives it about four times greater exposure than Hershey.

Latin America is the biggest developing market for Mondelez with Asia Pacific not far behind.

Chocolate is the largest category in developing markets, just ahead of biscuits and gum & candy.

The BRIC countries are the priority developing markets and represent a third of revenues. These markets will be handed the bulk of resources with anticipated growth in mid to high teens in next five years….. Read the full article

The Mondelez brands leading 70% of Growth

Oreo, Tuc, Club Social, BelVita, Chips Ahoy!, Barni
Gum & Candy
Trident, Halls, Chiclets, Stride, Dairy Milk Eclairs
Cadbury Dairy Milk, Milka, Lacta, Toblerone

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