Mondelez

Mondelez International advertising & marketing assignments

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Mondelez International is the global snacking group created at the end of 2012 by the break-up of the old Kraft empire. It is the undisputed global leader in biscuits, and joint #1 in confectionery alongside Mars. Following the split, the slimmed-down Kraft Foods retained a collection of well-established grocery products sold primarily in North America. Mondelez - with a wider global footprint - retained international rights to several of these, even after Kraft was itself acquired in 2015 by Heinz. (It still handles several beverage, cheese and grocery brands under license including Tang powdered beverages and Philadelphia cream cheese in international markets). However, the main Mondelez portfolio is built on three pillars of biscuits, chocolate and sugar confectionery. It contains the old group's vast cookie and crackers business, comprising the heritage Nabisco portfolio and the substantial Lu division acquired from Danone in 2007. Key brands include Oreo, Prince, Lu, Chips Ahoy, Ritz, Belvita and more. It also houses the extensive Cadbury confectionery division and the former Suchard chocolate brands in Europe, including the Cadbury masterbrand, Milka, Toblerone, Trident gum, Halls and others. However, not all of Mondelez' inherited brands fitted comfortably with the snacking strategy. In 2014, the group agreed to inject its international coffee brands (Jacobs, Kenco, Tassimo etc) into smaller rival DE Master Blenders 1753 to create joint venture Jacobs Douwe Egberts, now one of the global leaders in that sector. (It later swapped part of its stake for a holding in Keurig Dr Pepper; it has gradually sold down that holding in a series of transactions, but retains 8% of KDP as well as 23% of what is now JDE Peets). Yet as a result of mercurial performance and currency headwinds, Mondelez has itself come under repeated pressure from activist investors pushing for a break-up of the business or sale to another similarly minded group, such as PepsiCo. Revenues hovered around $25.9bn for four consecutive years before finally increasing in 2020 to $26.6bn, virtually unchanged in four years. The global Oreo brand, sold in more than 100 countries worldwide, alone accounted for over $3bn in sales. After several years of equally flat group profit, cost-cutting has helped to lift earnings. Net income for 2019 was $3.9bn, the best to-date excluding previous one-off exceptional gains, but earnings slipped back below $3.6bn for 2020. In 2019, biscuits generated revenues of $11.4bn, chocolate $8.2bn, gum & candy $3.4bn. Kraft products still marketed under license from Kraft still contributed almost $3bn. EMEA is the group's biggest region, accounting for 38% of revenues, while North America contributed 31%. Dirk van der Put succeeded Mondelez architect Irene Rosenfeld as CEO in 2017.

Capsule checked 23rd October 2019

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Who are the competitors of Mondelez? In cookies, the main US competitors to Mondelez are Keebler (now a unit of Ferrero), Pepperidge Farm (Campbell's), Lofthouse and Little Debbie. In Europe, Mondelez competitors include McVitie's and Bahlsen. Main confectionery rivals include Mars, Hershey and Nestle. See Food Sector and Confectionery Sector for other companies

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Historical profile information for Mondelez

Recent stories from Adbrands Update:

Adbrands Daily Update 22nd Mar 2021: Mondelez continued to expand its snack business with the addition of a majority shareholding in UK-based sports nutrition manufacturer Grenade, maker of Carb Killa and other high protein energy bars, drinks and shakes. Management retains a minority stake and will continue to run the business as a standalone operation. Terms of the deal were not disclosed but Mondelez is rumoured to have paid £200m for its stake. Grenade reported revenues of almost £52m in 2019, up 40% on the year before.

Adbrands Daily Update 10th Mar 2021: Mondelez added to its cracker portfolio with the acquisition of Australia's Gourmet Food Holdings for an undisclosed sum. The deal adds the OB Finest, Olina's Bakehouse and Crispbic brands to Mondelez' collection. Rather more unusually, it also introduces Mondelez to an entirely new category. As well as crackers, Gourmet Food is known for its premium smoked salmon and other seafoods, sold under the Ocean Blue banner. Mondelez has not confirmed whether it will keep or divest that line post-completion.

Adbrands Daily Update 17th Feb 2021: "Wildly. Deliciously. Organic". It's fair to say that VCCP's new campaign for Green & Black's is definitely not your usual chocolate ad. Despite being part of the mammoth Mondelez combine, Green & Black's has been pretty much left alone to plough its own furrow, conceptually at least, since its acquisition by Cadbury 15 long years ago. That really shows in this new approach. VCCP - also Cadbury's agency of course - has brought in star director Kim Gehrig to add real excitement to the brand's already solid organic credentials. You're unlikely to see a more thrilling confectionery commercial any time soon.

Adbrands Daily Update 24th Nov 2020: S4 Capital's MediaMonks division secured another "whopper" assignment with the capture of content production across the entire Mondelez portfolio for North America, Latin America and the Asia-Middle East-Africa region, as well as global tech infrastructure and website development. Earlier this month, in its 3Q announcement, S4 had flagged up that a new major win was in the process of being finalised. It will share some of the spoils with a newly created Publicis Groupe entity Team Pop, which was given responsibility for content production in Europe. MediaMonks and Publicis competed for the brief against Accenture and WPP.

Adbrands Daily Update 20th Aug 2019: Mondelez completed its global creative review. The bulk of the group's business will be consolidated into WPP and Publicis Groupe, but Mondelez will retain a roster of "guest specialist" agencies to work on key brands. For the most part, confectionery as well as a small collection of powdered beverage and cheese brands still licensed from Kraft Heinz will be managed worldwide by Ogilvy, with support as required from other aligned WPP agencies such as David. However, VCCP retains its role on the global Cadbury brand as well as a few unspecified "local jewels" in the UK. Biscuits and gum brands will be handled worldwide by Publicis Groupe, with Digitas acting as lead agency, coordinating contributions from its various sister networks within Publicis Communications. But The Martin Agency will retain its role on the global Oreo brand while BETC will continue to handle the Lu biscuit portfolio in France and other Western European markets. Major losers in the review appear to be Martin's Interpublic stablemate FCB as well as Wieden & Kennedy which had managed several European confectionery brands; also BBDO and Romance in several European markets and French independent Buzzman.

More on Mondelez from Adbrands Weekly Update


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