Food Business News - March 24, 2015 - (Page 42)

Company Profile Mondelez gaining momentum " stand here today more confident than ever that Mondelez International is well positioned to deliver strong shareholder returns now and over the long term." With profit margins and adjusted earnings per share on the rise, Irene Rosenfeld, chairman and chief executive officer of Mondelez International, Inc., Deerfield, Ill., believes such optimistic forecasts are solidly grounded. While the company's share price has endured wide swings, Mondelez stock is considerably higher than when the business was created with a 2012 spin-off of Kraft Foods Group. Ms. Rosenfeld made the case for the future of Mondelez and the snack foods business during a February presentation at the 2015 Consumer Analyst Group of New York, held in Boca Raton, Fla. "We have a unique set of assets, a clear portfolio focus on snacks and some of the fastest-growing categories within snacks, leading brands across those categories, I 42 FOODBUSINESS NEWS ® Profit margins widening, but market share slips strong share positions in our major markets, an advantaged geographic footprint with almost 40% of our revenues in emerging markets, and a strong global team that's executing well," Ms. Rosenfeld said. Still, by a number of measures, a murkier picture emerges for Mondelez. While in a fast growing category, top-line growth has been completely missing on an as reported basis from continuing operations. As the company has focused on boosting margins through pricing and cost reduction, it has lost market share. Investment analysts, while generally positive about the company, have expressed concern. Even with their questions, analysts share Ms. Rosenfeld's belief that the company's strong presence in snacks gives it great advantages within the food busi- ness. Currently, 75% of Mondelez revenues are derived from snacks, a figure that will grow to 84% when the company spins off its coffee business (though Mondelez will continue to hold an equity stake in the business created together with D.E Master Blenders). "We have leadership positions in some of the fastest-growing categories within snacks: biscuits, chocolate, candy and gum," Ms. Rosenfeld said. "We have an unrivaled portfolio of leading brands in each of our snacks categories: Oreo in biscuits, Milka and Cadbury in chocolates, Trident in gum, and Halls in candy. We have an advantaged global footprint, with nearly 40% of our revenues in the emerging markets. And although emerging markets have slowed somewhat recently, they still grew 7% last year. We expect emerging markets will continue to be our primary source of growth over the long term." The runway for growth at Mondelez is not necessarily limited by annual growth rates, Ms. Rosenfeld said. In most emerging markets where the company operates, Mondelez has a large presence in only one category or two. "For example, China is a biscuit and gum market; India is predominantly chocolate; and Russia is largely a chocolate market, although we have a significant coffee business there as well," she said. "The only exception is our $2 billion business in Brazil, where we have a meaningful presence in each of our snacks categories. Ultimately, our goal is to compete in all of our snacks categories in each of our key markets." Pegged by Ms. Rosenfeld as a $1.2 trillion market globally historically growing about 6% a year, she said snacks are "aligned with many significant consumer March 24, 2015

Table of Contents for the Digital Edition of Food Business News - March 24, 2015

Food Business News - March 24, 2015
Inside General Mills’ new approach to innovation
Nestle pursuing nutrition-based treatment for autism
Dairy Business News - Inclusion innovation: More than a chip or a chunk
Table of Contents
Web Contents
Editorial - Flexibility is needed to meet new opportunities
Kind raising the bar with innovation
McDonald’s to unlock power of local regions
Lancaster Colony acquires flatbread maker
SodaStream going after Keurig
Six forces shaping natural, organic product development
Stevia slow to penetrate confectionery market
C-Suite insight: C.P.G. at a crossroads
Kroger’s Simple Truth sales hit $1.2 billion for year
Private equity firm buys American Beverage Co.
Washington - Dietary Guidelines coming into focus
Market Insight - A `normal’ year for U.S. crops?
Health and Wellness - Shining a health halo over protein
Meat industry criticizes D.G.A.C. recommendation
Ingredient Innovations - Number of proposed pho alternatives widens
Still no timetable for final GRAS rule
Company Profile - Mondelez gaining momentum
New Food Products
Natural Products Expo West/Engredea
Ingredient Market Trends - Millers forecast soft red winter wheat crop at 381 million bus
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - March 24, 2015