Mondelez Leveraging Iconic 'Power Brands'
At CAGNY, Rosenfeld highlights snack company growth strategies
BOCA RATON, Fla. -- "I'm bullish about our future," Irene Rosenfeld, chairman and CEO of Mondelez International Inc., told attendees at the Consumer Analyst Group of New York (CAGNY) conference in Boca Raton, Fla., highlighting the snack company's competitive advantages as a more focused, growth company.
Deerfield, Ill.-based Mondelez International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages. The company comprises the global snacking and food brands of the former Kraft Foods Inc. following the spinoff of its North American grocery operations in Oct. 2012. Its portfolio includes several billion-dollar brands such as Cadbury and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gums.
Mondelez International has annual revenue of approximately $36 billion and operations in more than 80 countries.
Rosenfeld highlighted several ongoing growth opportunities. She cited examples of how the company is leveraging iconic "power brands" such as Oreo and global innovation platforms like Bubbly chocolate to drive growth. She also discussed how the company is increasing distribution in modern and traditional trade channels as well as entering white-space markets.
Rosenfeld showcased Mondelez International's leading positions in fast-growing categories, with nearly three-quarters of its net revenue coming from snacks. Globally, the biscuits and chocolate categories have each grown 6% annually since 2009. Gum and candy grew 5%, while coffee and powdered beverages were up 10% and 7%, respectively.
"Although our top-line growth was disappointing in the back half last year, the quality of underlying revenue and earnings growth provides strong momentum as we enter 2013," she said.
Rosenfeld affirmed the company's 2013 organic revenue growth outlook at the low end of its long-term target of 5 to 7%. She noted that growth will accelerate in the second half as the impact of lower coffee pricing and capacity constraints begin to abate by mid-year.
"We have an advantaged geographic footprint, an enviable portfolio of iconic brands and innovation platforms, a virtuous cycle driving strong underlying operating momentum and a long runway of growth opportunities," Rosenfeld said. "As a result, we're well-positioned for sustainable, profitable growth."
GDP growth per capita in developing markets will continue to be a key driver of these gains. With more than 40% of the company's sales from developing markets, Mondelez International is well-positioned to take advantage of this growth, she said.