Mondelez International facts for kids
|
Formerly
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Kraft Foods Inc. |
|---|---|
| Public | |
| Traded as |
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| Industry |
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| Founded | December 10, 1923 (original company) Chicago, Illinois, U.S. October 1, 2012 (current form) |
| Founders |
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| Headquarters | Chicago, Illinois, U.S. |
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Area served
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Worldwide |
|
Key people
|
Dirk Van de Put (chairman |
| Products | Confectionery |
| Brands |
List
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| Revenue |  US$36.02 billion (2023) |
|
Operating income
|
US$5.502 billion (2023) |
| US$4.968 billion (2023) |
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| Total assets | US$71.39 billion (2023) |
| Total equity | US$28.37 billion (2023) |
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Number of employees
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91,000 (2023) |
| Subsidiaries |
Mondelez International, Inc. (/ˌmɒndəˈliːz/ mon-DƏ-leez), styled as Mondelēz International, is an American multinational confectionery, food, holding, beverage and snack food company based in Chicago. Mondelez has an annual revenue of about $26.5 billion and operates in approximately 160 countries. It ranked No. 108 in the 2021 Fortune 500 list of the largest United States corporations by total revenue.
The company has its origins as Kraft Foods Inc., which was founded in Chicago in 1923. The present enterprise was established in 2012 when Kraft Foods was renamed 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."
The Mondelez International company manufactures chocolate, cookies, biscuits, gum, confectionery, and powdered beverages. Mondelez International's portfolio includes several billion-dollar components, among them cookie, cracker, and candy brands Belvita, Chips Ahoy!, Oreo, Ritz, TUC, Triscuit, Nabisco, LU, Sour Patch Kids, Barny, and Peek Freans; chocolate brands Milka, Côte d'Or, Toblerone, Cadbury, Green & Black's, Freia, Marabou, and Fry's; gum and cough drop brands Trident, Dentyne, Chiclets, Halls, and Stride; as well as Tate's Bake Shop cookies and powdered beverage brand Tang.
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 Toronto, Ontario, with operations in Brampton, Hamilton, Ontario and Montreal, Quebec.
Contents
History
Before Mondelez International
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.
In 1924, Kraft Cheese Company was founded and was listed on the Chicago Stock Exchange. 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.
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.
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. On November 9, the company's bid (then £9.8 billion) was rejected by Cadbury, which called it a "derisory" offer. Kraft upped its offer on December 4. 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. 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.
Cadbury sales were flat after Kraft's acquisition. 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. Kraft spent $1.3 billion on integration to achieve an estimated $675 million in annual savings by the end of 2012. 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.
Creation of Mondelēz International
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.
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. 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. Kraft Foods Group later merged with Heinz to become Kraft Heinz.
In 2014, the company announced a merger of its coffee business with the Dutch firm Douwe Egberts. The name of the newly merged company would be Jacobs Douwe Egberts. The merger was confirmed on May 6, 2014, and completed on July 2, 2015.
In April 2015, the U.S. 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. According to the CFTC, the purchase raised the price of the commodity and earned the company $5.4 million.
On June 30, 2016, Mondelez made a $23 billion offer to buy its smaller rival, Hershey. The half-cash, half-stock deal valued Hershey stock at $107 a share. Hershey's board, however, unanimously rejected the offer. In 2016, Terry's was one of a number of brands acquired by Eurazeo from Mondelēz and it subsequently became part of Carambar & Co.
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.
On May 6, 2018, Mondelez agreed to buy cookie maker Tate's Bake Shop for approximately $500 million. The acquisition was completed on June 7, 2018.
On June 19, 2019, Mondelez agreed to acquire a majority interest in Perfect Snacks, owner of refrigerated protein bar Perfect Bar. The acquisition was completed on July 16.
On February 25, 2020, Mondelez announced that it was acquiring a majority stake in Toronto-based Give & Go, a maker of two-bite brownies. The acquisition was completed on April 3, 2020.
In January 2021, Mondelez announced that it had bought Hu Master Holdings for more than $250 million.
On May 26, 2021, Mondelez announced an agreement to acquire Greek snack company Chipita S.A., a high-growth key player in the Central and Eastern European croissants and baked snacks category. On January 3, 2022, Mondelez announced that the acquisition was complete.
In May 2022, it was announced Mondelez had acquired Grupo Bimbo's confectionery business, Ricolino, for approximately US$1.3 billion.
On May 10, 2022, Mondelez announced that it would sell its gum business, including Trident and Dentyne, in developed markets including North America and parts of Europe, as well as the entire Halls cough drop business.
In June 2022, Mondelez announced that it would be acquiring Clif Bar for $2.9 billion. Through the acquisition, Mondelez will obtain Clif, Luna, and Clif Bar Kids as a part of its portfolio.
On December 19, 2022, Mondelez announced that it was selling its gum business, including the Trident, Dentyne, Chiclets and Stride brands, to Perfetti Van Melle, the makers of Mentos. The deal closed on October 2, 2023.
Corporate affairs
The headquarters is located in Fulton Market, in Chicago, Illinois. In 2020, the company announced that the headquarters was moving from suburban Deerfield, Illinois to Chicago. Mondelez' North American headquarters was then established in East Hanover, New Jersey, U.S., and a global innovation center was opened in 2023 in nearby Whippany, also in Morris County, New Jersey.
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. Mondelēz International's shares traded at over $42 per share, and its market capitalization was valued at over US$58.8 billion in October 2018. In the first quarter of 2020, due to COVID-19 lockdowns and people stocking up with sweets, the company's sales grew by 15% in North America, increasing its overall revenue by almost 3%.
| Year | Revenue in mil. US$ |
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 |
| 2020 | 26,581 | 3,555 | 67,810 | 58.47 | 79,000 |
| 2021 | 28,720 | 4,300 | 67,092 | 66.31 | 79,000 |
| 2022 | 31,500 | 2,720 | 71,160 | 69.72 | 80,000 |
Brands
Mondelez International brands (formerly Kraft Foods Inc.) includes brand-name products that are developed, owned, licensed, or distributed by Mondelez International. The company's core businesses are snack foods and confectionery. In certain international territories, Kraft-branded products have been made by Mondelez under license from Kraft Heinz Company since 2012.
See also
In Spanish: Mondelēz International para niños
- List of Mondelez International brands
