2019 Vault Rankings
Well-known brand in the food product industry
Positive work/life balance and many flexible work options
Office politics and communication issues
A well-known producer of food products that provides employees with a flexible work environment in locations around the globe
One of the world's largest snack companies, Mondelez International owns a pantry of billion-dollar brands such as Cadbury and Milka chocolates; LU, Nabisco, and Oreo biscuits; Trident gum; and Tang powdered beverages. The company's portfolio includes global, national, and regional brands, many of which are more than 100 years old. Biscuits (cookies, crackers, and salted snacks) and chocolate account for most of the company’s sales. Mondelez, which operates worldwide, generates most of its revenue outside the US.
Mondelez's portfolio of food and snack brands are organized into five product categories. Its two largest, biscuits (cookies, crackers and salted snacks) and chocolate, together account for about 70% of total revenue. The remaining product categories include gum & candy (some 15%), cheese & grocery (nearly 10%), and beverages (about 5%).
Europe represents Mondelez’s largest market, generating nearly 40% of revenue. North America and the AMEA region (Asia, Middle East, and Africa) contribute more than 25% and 20% of sales, respectively, with Latin America adding another 10%.
Mondelez has some 150 manufacturing and processing facilities in more than 50 countries, primarily in Europe and the AMEA region. It also has about 130 distribution centers, nearly two-thirds located in North America.
Sales and Marketing
Mondelez sells its candy, snacks, and beverages through supermarket chains, wholesalers, supercenters, warehouse clubs, mass merchandisers, convenience stores, drug stores, and other retail food outlets. The company also sells through independent sales offices and agents in some of its international locations.
Since the time of its divestiture of Kraft Food Group in 2012, Mondelez's revenue has been in decline. Sales fell 13% from $29.6 billion in 2015 to $25.9 billion in 2016, primarily as a result of the mid-2015 spinoff of its coffee business, as well as unfavorable currency translations and the deconsolidation of its historical Venezuelan operations. This was offset slightly by organic revenue growth of nearly 1.5%, driven entirely by price increases.
Mondelez reported net income of $1.7 billion in 2016, a ten-year low. That represents a huge decline from the prior year when proceeds from the sale of the company’s coffee business boosted profits to more than $7 billion. Cash from operations also fell that year, dropping about 25% to $2.8 billion.
Mondelez has been focusing on its core brands (its Power Brands) and brands that appeal to changing consumer tastes as a key element of its growth strategy. It has launched healthier versions of some of its iconic brands, including Oreo and Ritz. In addition, the company has recently introduced new brands designed to appeal to the Millennial generation and others who prefer “better-for-you” snacks, including savory lines Good Thins in 2016 and Vea in 2017. It has also transitioned how it sources ingredients, with a specific focus on sustainable palm oil and a commitment to source 100% cage-free eggs over the next 10 years.
As part of this focus on core and growth brands, Mondelez in 2015 combined its wholly owned coffee business with the coffee business of The Netherlands-based D.E Master Blenders to form a joint venture, JDE. Mondelez owns just over a quarter of the venture. In 2017 it sold its Australia and New Zealand grocery business, which includes the well-known Vegemite brand.
The company also has a heightened focus on cost-cutting and margin improvement as part of a $3.5 billion restructuring program that runs through 2018. It has spent about a billion dollars in restructuring and implementation costs in each of the past two years as it works to make its supply chain more efficient and reduce overhead. The restructuring has included asset disposals and layoffs.
Mergers and Acquisitions
In mid-2018 Mondelez entered the fast-growing premium cookie market with the $500 million acquisition of Tate's Bake Shop. Tate's, headquartered in Long Island, NY, is known for its thin-and-crispy cookies made from simple, high-quality ingredients.
3 Parkway North Blvd STE 300
Deerfield, IL 60015-2565
Phone: 1 (847) 943-4000
Employer Type: Publicly Owned
Stock Symbol: MDLZ
Stock Exchange: , NASDAQ
EVP and CFO: Brian T. Gladden
Chairman: Irene B. Rosenfeld
CEO and Director: Dirk Van de Put
Employees (This Location): 2,000
Employees (All Locations): 80,000
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