Mondelez International

From Wikipedia, the free encyclopedia

Mondelēz International, Inc.
TypePublic
ISINUS6092071058
IndustryFood processing
PredecessorKraft Foods Inc.
FoundedDecember 10, 1923; 97 years ago (1923-12-10) (original company)
Chicago, Illinois, U.S.
October 1, 2012; 8 years ago (2012-10-01) (current form)[1]
FounderThomas H. McInnerney
HeadquartersChicago, Illinois, U.S.
Area served
Worldwide
Key people
Dirk Van de Put (Chairman​ and CEO)
ProductsBaby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods
RevenueDecrease US$25.87 billion (2019)
Increase US$3.843 billion (2019)
Increase US$3.87 billion (2019)
Total assetsIncrease US$64.55 billion (2019)
Total equityIncrease US$27.275 billion (2019)
Number of employees
Decrease 80,000 (2020)
Websitemondelezinternational.com
Footnotes / references
[2]

Mondelez International, Inc. (/ˌmoʊndəˈliːz/),[3] often stylized as Mondelēz, is an American multinational confectionery, food, holding and beverage and snack food company based in Chicago, Illinois.[4] Mondelez has an annual revenue of about $26 billion and operates in approximately 160 countries.[5] It ranked No. 117 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[6]

The company has its origins as Kraft Foods, which was founded in 1923 in Chicago. The present enterprise was established in 2012 when Kraft Foods was renamed to Mondelez and retained its snack food business, while its grocery business was spun off to a new company called Kraft Foods Group. The name is derived from the Latin word mundus ("world") and delez, a fanciful modification of the word "delicious."[7][8][9]

The Mondelez International company manufactures chocolate, cookies, biscuits, gum, confectionery, and powdered beverages. Mondelez International's portfolio includes several billion-dollar components. These components includes cookie and cracker brands Belvita, Chips Ahoy!, Oreo, Ritz, TUC, Triscuit, LU, Club Social, Sour Patch Kids, Barny, and Peek Freans; chocolate brands Milka, Côte d'Or, Toblerone, Cadbury, Green & Black's, Freia, Marabou, Fry's, and Lacta; gum and cough drop brands Trident, Dentyne, Chiclets, Halls, and Stride; as well as Jell-O, Tate's Bake Shop and powdered beverage brand Tang.[10]

Mondelez Canada holds the rights to Christie Brown and Company, which consists of brands such as Mr. Christie, Triscuits and Dad's Cookies. Its head office is in Mississauga, Ontario, with operations in Toronto, Hamilton, Ontario and Montreal, Quebec.

History[]

Before Mondelez International[]

Main article: Kraft Foods Inc. § History

Mondelez International is rooted in the National Dairy Products Corporation (National Dairy), which was founded on December 10, 1923, by Thomas H. McInnerney and Edward E. Rieck. The firm was initially set up to execute on a rollup strategy in the fragmented United States ice cream industry.[11]

In 1924, Kraft Cheese Company was founded and was listed on the Chicago Stock Exchange.[12] Two years later, it was listed on the New York Stock Exchange. In 1928, it acquired Phenix Cheese Company, the maker of a cream cheese branded as Philadelphia Cream Cheese, founded by Jason F. Whitney Sr. and the company changed its name to Kraft-Phenix Cheese Company.[citation needed]

In 1930, National Dairy acquired Kraft Phenix. After the acquisition, the combined company retained the National Dairy name and management, though the Kraft Phenix side of the company continued to operate largely independently.[12][13]

On September 7, 2009, Kraft made a hostile £10.2 billion takeover bid for the British confectionery group Cadbury, makers of Dairy Milk and Bournville chocolate.[14] On November 9 the company's bid (then £9.8 billion) was rejected by Cadbury, which called it a "derisory" offer.[15] Kraft renewed the offer on December 4.[16] It had significant political and public opposition in the United Kingdom and abroad, leading to a call for the government to implement economic protectionism in large-company takeovers.[17] On January 19, 2010, Cadbury approved a revised offer from Kraft which valued the company at £11.5 billion ($19.5 billion). Some funds for the takeover were provided by the Royal Bank of Scotland, the partially state-owned British bank.[18]

Cadbury sales were flat after Kraft's acquisition.[19] Despite the Cadbury takeover helping to boost overall sales by 30 percent, Kraft's net profit for the fourth quarter fell 24 percent (to $540 million) due to costs associated with integrating the UK business after the acquisition.[20] Kraft spent $1.3 billion on integration to achieve an estimated $675 million in annual savings by the end of 2012.[21] Kraft increased prices to offset rising commodity costs for corn, sugar, and cocoa in North America and Europe. According to Rosenfeld, "We expect it will remain weak for the foreseeable future." Taking into account integration costs, the acquisition reduced Kraft's earnings per share by about 33% immediately after the Cadbury purchase.[20]

In August 2011, Kraft Foods announced plans to split into two publicly traded companies, an international snack-food company and a North American grocery company.[22][23]

The snack-food company, called Mondelez International, would be the legal successor of the old Kraft Foods, while the grocery company would be a new company, Kraft Foods Group. The split was completed in October 2012.[24] It was structured so that Kraft Foods changed its name to Mondelez International and spun off Kraft Foods Group as a new publicly traded company.[25] Kraft Foods Group later merged with Heinz to become Kraft Heinz.[24]

Mondelez International[]

In 2014, the company announced a merger of its coffee business with the Dutch firm Douwe Egberts.[26] The name of the newly-merged company would be Jacobs Douwe Egberts.[26] The merger was confirmed on May 6, 2014, and completed on July 2, 2015.[27][28]

On June 30, 2016, Mondelez made a $23 billion offer to buy its smaller rival, Hershey.[29] The half-cash, half-stock deal valued Hershey stock at $107 a share.[29] Hershey's board, however, unanimously rejected the offer.[29]

In August 2017, it was announced that Dirk Van de Put, Belgian CEO of McCain Foods, would succeed Irene Rosenfeld as CEO in November 2017.[30]

On May 6, 2018, Mondelez agreed to buy cookie maker for approximately $500 million.[31] The acquisition was completed on June 7, 2018.[32]

On June 19, 2019, Mondelez agreed to acquire a majority interest in Perfect Snacks, owner of refrigerated protein bar Perfect Bar.[33] The acquisition was completed on July 16.[34]

On February 25, 2020, Mondelez announced that it was acquiring a majority stake in Toronto-based Give & Go, a maker of two-bite brownies.[35] The acquisition was completed on April 3, 2020.[36]

In January 2021, Mondelez announced that it had bought Hu Master Holdings for more than $250 million.[37]

Finances[]

For the fiscal year 2017, Mondelēz International reported earnings of US$2.922 billion, with an annual revenue of US$25.896 billion, a decline of 0.1% over the previous fiscal cycle.[38] Mondelēz International's shares traded at over $42 per share, and its market capitalization was valued at over US$58.8 billion in October 2018.[38] In the first quarter of 2020, due to COVID-19 lockdowns and people stocking up with sweets, the company's sales grew by 15% in North America, increasing its overall revenue by almost 3%.[39]

Year[40] Revenue
in mil. US$ 		Net income
in mil. US$ 		Total assets
in mil. US$ 		Price per share
in US$ 		Employees
2005 34,113 2,632 57,628 14.42 94,000
2006 33,256 3,060 55,574 15.24 90,000
2007 35,858 2,721 67,993 16.33 103,000
2008 40,492 2,884 63,173 15.28 98,000
2009 38,754 3,021 66,714 13.68 97,000
2010 31,489 4,114 95,289 16.43 127,000
2011 35,810 3,554 93,837 19.21 126,000
2012 35,015 3,067 75,477 23.06 110,000
2013 35,299 3,915 72,515 28.09 107,000
2014 34,244 2,184 66,771 33.41 104,000
2015 29,636 7,267 62,843 38.64 99,000
2016 25,923 1,659 61,538 41.15 90,000
2017 25,896 2,922 63,109 42.46 83,000
2018 25,938 3,381 62,729 42.21 80,000
2019 25,868 3,870 64,549 51.57 80,000

Controversies[]

See also: Kraft Foods Inc. § Controversies

Deforestation[]

In September 2017, an investigation[41] conducted by NGO Mighty Earth found that a large amount of the cocoa used in chocolate produced by Mondelez and other major chocolate companies was grown illegally in national parks and other protected areas in Ivory Coast and Ghana.[42][43][44] The countries are the world's two largest cocoa producers.[45][46]

The report documents how in several national parks and other protected areas, 90% or more of the land mass has been converted to cocoa.[47] Less than four percent of Ivory Coast remains densely forested, and the chocolate companies' laissez-faire approach to sourcing has driven extensive deforestation in Ghana as well.[48] In Ivory Coast, deforestation has pushed chimpanzees into just a few small pockets, and reduced the country's elephant population from several hundred thousand to about 200–400.[49][50][51]

In November 2018, an investigation by Greenpeace International found that 22 palm oil suppliers to Mondelez International cleared over 70,000 hectares (170,000 acres; 270 sq mi) of rainforest from 2015 to 2017.[52]

Wheat futures price-fixing allegation[]

In April 2015, the US Commodity Futures Trading Commission (CFTC) alleged that Mondelez International and its former subsidiary, Mondelez Global, bought $90 million (£61 million) of wheat futures with no intention of taking delivery.[53] According to the CTFC, the purchase raised the price of the commodity and earned the company $5.4 million.[53]

Child slavery[]

In 2021, Mondelez International was named in a class action lawsuit filed by eight former child slaves from Mali who allege that the company aided and abetted their enslavement on cocoa plantations in Ivory Coast. The suit accused Mondelez (along with Nestlé, Cargill, Mars, Olam International, The Hershey Company, and Barry Callebaut) of knowingly engaging in forced labor, and the plaintiffs sought damages for unjust enrichment, negligent supervision, and intentional infliction of emotional distress.[54]

References[]

  1. ^ "Our history". Mondelez International.
  2. ^ "US SEC: 2019 Form 10-K Mondelez International". U.S. Securities and Exchange Commission. February 7, 2020. Retrieved May 20, 2020.
  3. ^ De La Merced, Michael J. (March 21, 2012). "Kraft, 'Mondelez' and the Art of Corporate Rebranding". The New York Times. Archived from the original on January 30, 2013. Retrieved January 28, 2021.CS1 maint: unfit URL (link)
  4. ^ "About Us". Mondelēz International, Inc. Retrieved December 9, 2020.
  5. ^ "Corporate fact sheet – 2018" (PDF).
  6. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved November 10, 2018.
  7. ^ Storm, Stephanie (May 23, 2012). "Mondelez Is New Name for Kraft's Snack Foods Company". NYTimes.com. California. Retrieved August 25, 2015.
  8. ^ "Kraft Foods Proposes Mondelēz International, Inc. As New Name For Global Snacks Company". Nasdaq OMX. Archived from the original on January 14, 2016. Retrieved November 22, 2012.
  9. ^ Chernev, Alexander (March 22, 2012). "What's in a Name? Krafting the Mondelez Brand". Bloomberg. Archived from the original on May 25, 2016. Retrieved January 28, 2021.
  10. ^ "Our Brands". Mondelēz International, Inc. Retrieved December 9, 2020.
  11. ^ "National Dairy Products Corporation Capitalization". The Wall Street Journal. December 12, 1923. p. 10. Retrieved January 7, 2019.
  12. ^ Jump up to: a b "Kraft Foods Inc". Funding Universe. 2002. Archived from the original on August 19, 2010. Retrieved March 10, 2008.
  13. ^ Kraftco Corporation Annual Report 1969.
  14. ^ "Kraft Foods Inc. proposes combination with Cadbury PLC". Kraft Foods. September 7, 2009. Archived from the original on January 14, 2016. Retrieved September 7, 2009.
  15. ^ Arnold, Adam (November 9, 2009). "Cadbury Rejects Kraft's 'Derisory' Takeover Bid". Sky News. Archived from the original on November 12, 2009. Retrieved January 22, 2021.CS1 maint: unfit URL (link)
  16. ^ "Kraft Formalizes Bid For UK Candy Maker Cadbury". Allheadlinenews.com. Retrieved August 4, 2011.[permanent dead link]
  17. ^ Roberts, Dan (January 19, 2010). "50 reasons to fight Kraft". The Guardian. London. Retrieved May 7, 2010.
  18. ^ "Kraft to take over Cadbury". New Statesman. January 19, 2010. Retrieved January 19, 2010.
  19. ^ Management, Strategic; Asia-Pacific; India; America, North. "Sweet Surrender: Can Kraft's Cadbury Acquisition Help It Tap the Indian Market?". Knowledge@Wharton. Retrieved May 19, 2021.
  20. ^ Jump up to: a b "Kraft Foods' profits hit by Cadbury costs". BBC. February 11, 2011. Retrieved February 11, 2011.
  21. ^ Steuber, Erin. "Kraft, Cadbury not such a sweet deal?". Medill Reports. Archived from the original on July 7, 2010. Retrieved April 15, 2010.
  22. ^ "Kraft Foods – Investor Center – Financial News Release". Phx.corporate-ir.net. Archived from the original on October 17, 2015. Retrieved August 4, 2011.
  23. ^ Rushe, Dominic (March 21, 2012). "Kraft spins off snacks business into new Mondelez International company". The Guardian. London. Retrieved March 21, 2012.
  24. ^ Jump up to: a b www.bloomberg.com https://www.bloomberg.com/graphics/2019-opinion-cadbury/. Retrieved May 19, 2021. Missing or empty |title= (help)
  25. ^ "News Releases". Phx.corporate-ir.net. August 4, 2011. Archived from the original on October 17, 2015. Retrieved August 25, 2015.
  26. ^ Jump up to: a b "DE and Mondelez merge". nu.nl (in Dutch). May 7, 2014. Retrieved May 5, 2015.
  27. ^ "Mondelez and Douwe Egberts maker in coffee mega-merger". The Telegraph. May 7, 2014. Retrieved December 9, 2015.
  28. ^ "Mondelez and Master Blenders complete coffee merger". Chicago Tribune. July 2, 2015.
  29. ^ Jump up to: a b c Hoffman, Liz; Mattioli, Dana; Cimilluca, Dana (June 30, 2016). "Snack Giant Mondelez Makes $23 Billion Takeover Bid for Hershey". The Wall Street Journal. Retrieved November 13, 2016.(subscription required)
  30. ^ "Who is Dirk Van de Put, the new CEO of Mondelez?". chicagobusiness.com. August 2, 2017. Retrieved August 4, 2017.
  31. ^ Meyersohn, Nathaniel (May 7, 2018). "Oreo maker scoops up Tate's chocolate-chip cookies". CNNMoney. Retrieved November 29, 2019.
  32. ^ Dorbian, Iris (June 8, 2018). "Riverside completes its sale of Tate's Bake Shop to Mondelēz International Inc". PE Hub. Retrieved November 29, 2019.
  33. ^ Hirsch, Lauren (June 19, 2019). "Oreo-owner Mondelez to take majority stake in Perfect Bar-parent, Perfect Snacks". CNBC. Retrieved March 8, 2020.
  34. ^ Inc, Mondelez International (July 16, 2019). "Mondelēz International Completes Acquisition of Majority Interest in Perfect Snacks®". GlobeNewswire News Room. Retrieved March 8, 2020.
  35. ^ "Mondelez buys majority stake in Canadian maker of two-bite brownies Give & Go". CNBC. February 25, 2020. Retrieved March 8, 2020.
  36. ^ "Mondelēz International completes acquisition of Give & Go". Food In Canada. April 3, 2020. Retrieved April 7, 2020.
  37. ^ Reuters Staff (January 5, 2021). "Mondelez buys chocolate-bar maker Hu to expand healthy snack business". Reuters. Retrieved January 5, 2021.
  38. ^ Jump up to: a b "Mondelz International.docx | Mondelez International | Pension". Scribd. Retrieved August 31, 2020.
  39. ^ Sherman, Natalie (April 28, 2020). "Cars out, snacks in as virus impacts US company profits". BBC News. Archived from the original on May 4, 2020. Retrieved May 4, 2020.
  40. ^ "Annual Reports". Mondelēz International, Inc. Retrieved December 23, 2020.
  41. ^ "Chocolate's Dark Secret". September 2017.
  42. ^ "Olam Livelihood Charter 2016: Equipping smallholders to secure their future Archived November 7, 2017, at the Wayback Machine," Olam, 2016.
  43. ^ "Mondelez International's Cocoa Life Partners with FLOCERT to Verify Supply Chain. Archived November 7, 2017, at the Wayback Machine" Mondelez press release. 3, 2015.
  44. ^ "Mondelez launches new cocoa supply chain sustainability initiative." Edie Newsroom. February 4, 2015.
  45. ^ Wessel, Marius; Quist-Wessel, P.M. Foluke (2015). "Cocoa production in West Africa, a review and analysis of recent developments". NJAS - Wageningen Journal of Life Sciences. 74–75: 1–7. doi:10.1016/j.njas.2015.09.001.
  46. ^ "How Much Rainforest Is in That Chocolate Bar?" World Resources Institute. August 6, 2015.
  47. ^ "Cocoa farming and primate extirpation inside The Ivory Coast's protected areas." Tropical Conservation Science. 8.1(2015): 95-113.
  48. ^ "Analyse qualitative des facteurs de déforestation et de dégradation des forêts en Côte d'Ivoire Archived November 7, 2017, at the Wayback Machine"; Rapport Final, November 10, 2016
  49. ^ Covey, R. and McGraw, W. S. "Monkeys in a West African bushmeat market: implications for cercopithecid conservation in eastern Liberia." Tropical Conservation Science. 7.1 (2014): 115-125.
  50. ^ Marchesi, P., Marchesi, N., Fruth, B., and Boesch, C. "Census and Distribution of Chimpanzees in Cote D'Ivoire." PRIMATES. 36.4(1995): 591-607.
  51. ^ "Poaching contributes to forest elephant declines in Côte d'Ivoire, new numbers reveal." WWF. September 5, 2011.
  52. ^ Dalton, Jane (November 13, 2018). "Chocolate giant Cadbury 'still pushing orangutans towards extinction by wrecking habitat for palm oil'". The Independent. Retrieved May 26, 2020.
  53. ^ Jump up to: a b "Kraft accused of wheat price fixing". BBC News. April 1, 2015. Retrieved August 25, 2015.
  54. ^ Balch, Oliver (February 12, 2021). "Mars, Nestlé and Hershey to face child slavery lawsuit in US". Retrieved February 13, 2021.

External links[]

Retrieved from ""