Mondelez International, Inc.
) recently announced a global strategic partnership with
) to strengthen its social and mobile brand building initiatives
to drive business growth and especially, turn around its top
The agreement covers 52 countries, including the U.K., the
United States, France, Brazil, India, Indonesia and the Gulf
States. Moreover, the partnership will entail a joint commitment
to innovation and access to research and capability building.
The global snacks company has been under pressure and reported
disappointingtop-line results ever since its separation from
Kraft Foods Group, Inc.
) in Oct 2012. Weak biscuit sales in China, continued headwinds
from coffee pricing and slower global category growth hurt
Mondelez's revenues in the second half of 2013. In fact, Chief
Executive Officer (CEO) Irene Rosenfeld, admitted at the Consumer
Analyst Group of New York (CAGNY) conference last month that
Mondelez's "margins were lower than peers".
Also, the Zacks Rank #3 (Hold) company has been criticized for
its profits/margins by activist investor Nelson Peltz in the
past. Peltz joined Mondelez's board of directors in Jan 2014,
putting an end to his agenda of pushing the food and beverage
) to take over Mondelez.
Partnerships like the present one will allow Mondelez to
engage directly with consumers as most people spend a significant
time on mobile and Facebook every day. Such deals will add a
personal touch to Mondelez's marketing efforts and boost the
growth of its iconic brands like Oreo, Cadbury, Trident and many
Despite slower category growth, Mondelez continues to make
brand-building and advertising investments to capitalize when
growth resumes. The company is refreshing its brand portfolio
through product innovation and extending its brands to new
geographies and platforms. Mondelez's advertisement spend is
biased toward the high-margin Power Brands.
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