Mondelēz to divest gum and Halls businesses
CHICAGO — In an effort to accelerate growth and generate "strong, sustainable shareholder value," Mondelēz International Inc. plans to divest its developed market gum business. The company also disclosed its intention to divest its global Halls business.
Mondelēz stated it will continue to operate other brands and products within its candy business, as well as its emerging market gum business.
These moves are part of the company's strategy, where it now expects 3% to 5% organic net revenue growth, up from previous guidance of 3%-plus.
"Our competitive advantages in the marketplace and focused strategy on global snacking leadership give us great confidence in our ability to sustain strong top- and bottom-line growth for many years to come," said Dirk Van de Put, chairman and CEO, Mondelēz. "Building on our category leadership, favourable geographic footprint, and the power of our iconic brands, we are well positioned for stronger growth in the decade ahead."
Mondelēz will continue to prioritize growth, execution and culture as three pillars of its strategy. It will invest in differentiated marketing and sales capabilities, while strengthening its local-first operating model to further empower employees and promote a growth culture. The company also is elevating sustainability to become a fourth pillar in its long-term growth strategy. By further advancing its "Snacking Made Right" agenda across a focused set of environmental, social and governance priorities, Mondelēz aims to help drive positive change at scale.
Mondelēz has a long-term vision to generate 90% of revenue in chocolate and biscuits, including baked snacks.
"Chocolate and biscuits are attractive and historically durable categories in both developed and emerging markets, with significant headroom to increase penetration and per capita consumption," the company stated in a news release.
Mondelēz will strengthen its presence in its core categories in major markets by building on existing distribution, expanding in high-growth channels and leveraging its brands to establish multi-category leadership positions.
Mondelēz expects to drive further value through organic growth and targeted acquisitions that expand its presence in chocolate, biscuits and baked snacks by filling geographic gaps and expanding into under-represented segments and price tiers. The eight acquisitions Mondelēz has completed or announced since 2018 add $2 billion in annual revenue, and have had an average growth rate in the high single digits, the company revealed.
"Our growth ambition will not be possible without the passion, dedication and commitment of our people, the very best in the consumer-packaged goods industry," Van de Put said. "To accelerate our growth and focus, we are taking our talent and culture strategy to the next level by doubling down on initiatives to advance diversity, equity and inclusion; expanding investment in top talent programs; and rolling out a global, holistic employee well-being program."
Added Luca Zaramella, Mondelēz's chief financial officer, "Consistent delivery against our financial commitments, investment in the long-term health of our brands and the capabilities of our people, combined with our key competitive advantages, position us well to create significant value for our stakeholders."
Chicago-based Mondelēz International Inc. had 2021 net revenues of approximately $29 billion. It is known for many brands, including Oreo, belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate.