05 Oct 12 Mondelez International celebrates its launch as the pre-eminent player in global snacking
Monday 1 October saw the official splitting in two of the world’s second-largest food company: Kraft Foods into an international snacks business, Mondelez International; and its North American grocery business into Kraft Foods Group.
Mondelez International, the world’s pre-eminent maker of chocolate, biscuits, gum and candy, commemorated its launch as a new company with events around the world this week.
Joined by 14 employees from five continents, chairman and CEO Irene Rosenfeld on Wednesday rang the opening bell on The NASDAQ Global Select Market to mark the second day of trading under the company’s new ticker symbol, MDLZ.
Kraft Foods, the maker of many of the world’s most loved food and beverage brands, several of them in the $1-billion category – including Cadbury, Jacobs, LU, Milka, Nabisco, Oreo, Tang and Trident – changed its name to Mondelez International, after spinning-off its North American grocery business on October 1. The company name is a newly coined word that evokes the idea of a delicious world filled with moments of joy.
“This is a very special day,” Rosenfeld said. “We’re making our debut as Mondelez International and unleashing a global snacking powerhouse that’s uniquely positioned to delight consumers. We’re the world’s greatest start-up. Out of the gate, we have $36-billion in revenue and leading positions in every market in which we compete. What’s more, our brands have been loved by consumers around the world for generations.”
To celebrate this milestone, Mondelez International held a special event in New York City’s Times Square to commemorate what the new company is all about: creating delicious moments of joy.
Employees shared a taste of Mondelez International’s products with thousands of people passing through the square. The celebration is part of worldwide events involving 100 000 Mondelez International employees across more than 80 countries and 300 offices, research and development facilities, distribution centers and manufacturing sites.
“Our Board, executive team and employees are energized by the exciting future that lies ahead of us,” said Rosenfeld. “We’re confident we have the right plans in place to deliver top-tier revenue and earnings growth over the long term.”
Tired Kraft Mac and Cheese gets reheated
Kraft’s North American grocery business, now listed on the NASDAQ Stock Market as an independent company, is starting life with a handicap: years of underinvestment in new products and marketing.
While the snacks business has grown almost 30 percent a year since 2009, its spun-off sibling is saddled with a portfolio of aging brands in need of freshening as it confronts potent rivals and rising commodity costs. To goose growth, Kraft Foods will spend more on marketing and research and has unleashed edgy new TV commercials that are already generating buzz on YouTube.
“Parts of Kraft have been undermanaged for a very long time,” said Edward Aaron, an analyst with RBC Capital Markets in Denver. “Part of the merit of the split is to improve resource allocation and make cultural changes that should have been made a long time ago.” Read.