Mondelēz International

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Mondelēz International logo on the company headquarters building in Chicago, Illinois.

© Jonathan Weiss/Dreamstime.com

Mondelēz International is an American global snack manufacturer spun off from Kraft Foods in 2012. A leader in biscuits with a strong portfolio of confectioneries, baked goods, and other snack items, Mondelēz focuses primarily on the high-growth international snack food industry—a market conducive to geographic expansion and product innovation.

The company’s largest business segment—biscuits and cookies under what used to be Kraft’s Nabisco subsidiary—holds a sizable, if not the largest, market share globally. Its chocolate products—many of which were part of Kraft’s 2010 acquisition of Cadbury—also command a significant share in the global confectionery market.

Mondelēz’s business can be broken down into a few key segments, each featuring a portfolio of brands, from the latest trends to iconic names.

Biscuits and cookies

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Milk and cookies.

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Baked snacks

Chocolate

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“Tastes like this feels.”

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Gum, candy, and cough drops

Beverages

Other brands

Since the beginning of her tenure as Kraft Foods CEO, Irene Rosenfeld aimed to reinvigorate the company through international market expansion, business acquisitions, and product innovation.

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Irene Rosenfeld, 2009.

© World Economic Forum—swiss-image.ch/Sebastian Derungs

During the course of this expansion, particularly after Kraft Foods’ contentious $19.6 billion Cadbury acquisition, it became clear to Rosenfeld that the conglomerate’s growth potential may have been hindered by the lack of synergy between its two distinct business models:

In August 2011, Kraft announced it would split the company into two entities, each focusing on its distinct model and market.

In October 2012, the Kraft Foods split was officially finalized: Kraft Foods Group (which would later merge with Heinz to become the Kraft Heinz Company) would become the successor to the company’s North American grocery brands, while Mondelēz International, Inc., would chart a new course as an international snack and confectionery company. Kraft Foods Group would be led by a new CEO, Anthony Vernon, while Rosenfeld would lead Mondelēz as CEO (until her retirement in 2017).

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Crunch!

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Mondelēz began trading on the Nasdaq stock exchange under the ticker symbol MDLZ in 2012. Its name (pronounced mohn-dah-LEEZ) is a portmanteau of Monde, derived from the Latin word “mundus” meaning “world,” and “delez,” which is derived from the word “delicious.” Hence, the name Mondelēz was coined to evoke the notion of “delicious world.”

Since its spin-off in 2012, Mondelēz International pursued its expansion of markets and products through the acquisition of several domestic and international snack brands. These include:

Despite its remarkable growth, the company also found itself embroiled in a series of controversies, including:

Many of these controversies were associated with companies acquired by Mondelēz; some of the alleged misconduct occurred before Mondelēz International was founded.

With regard to criticisms of unethical marketing, Mondelēz has faced significant scrutiny, particularly in connection to its key brands Oreo, Chips Ahoy!, and Cadbury. Advertisements for these products, many of which are geared toward kids, feature playful narratives, characters, and formats that are designed for young audiences.

Mondelēz is not the only processed food manufacturer that advertises directly to children using content formats and styles aimed to appeal to them. In response, advocacy groups and health organizations such as the Healthy Living Alliance (HEALA) and the World Health Organization (WHO) have called for stronger regulations to curb this type of marketing, which they view as a significant threat to public health. Although the company has taken steps in recent years to address these and other ethical concerns, multinational corporations—particularly those who specialize in snack foods—must walk a fine line between giving customers what they want and encouraging unhealthy behavior.

Since its establishment in 2012, Mondelēz has been successful in pursuing its corporate vision, growing into a global snack titan with a diverse portfolio of brands in various markets. Despite controversies and a significant decline in earnings per share (EPS) growth in the mid-2010s, the company’s earnings growth rebounded in the early 2020s, perhaps reflecting its commitment to evolving its product lineup and business practices to meet the expectations of the marketplace.