Mondelēz International's Diversification
Final PDF to printer Mondelēz International’s Diversification Strategy case 9 in 2017: Has Corporate Restructuring Benefited Shareholders? JOHN E. GAMBLE Texas A&M University–Corpus Christi Mondelēz International was among the world’s largest range of the company’s shares in 2011 was relatively snack foods makers with seven billion-dollar brands unchanged from that in 2007 when it became an including Cadbury, LU, Milka, Cadbury Dairy Milk, independent company after a spin-off by the Altria Trident, Nabisco, and Oreo. The company’s brand Group (formerly Philip Morris). Some of the lack- portfolio in 2017 included another 44 well-known luster growth in its share price could be attributed to brands such as Triscuit, Toblerone, Wheat Thins, the economic slowdown that began in 2007, but the Ritz, Philadelphia, Nilla, BelVita, Chips Ahoy!, and company’s upper management and its board believed Tang. Even though some of its brands had histories the underlying cause of its poor market performance dating over 100 years, the company had come into was a corporate strategy that was not sufficiently existence only in 2012 after a corporate restructur- focused on growth. ing at Kraft Foods. Kraft Foods Inc. was the world’s The company implemented a corporate restruc- second-largest processed foods company in 2012 with turing in 2012 to create a high-growth global snacks annual revenues of more than $54 billion in 2011. The business and a high-margin North American gro- company’s global lineup of brands included Maxwell cery business. The new snacks-oriented company House, Oreo, Cadbury, Chips Ahoy!, Honey Maid, would include all of Kraft Foods’s business units and Dentyne, Velveeta, Cheez Whiz, Oscar Mayer, and brands in Europe and developing markets, plus its Kraft.
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