Mondelez International Inc. (MDLZ, Financial) (1.8%) (MDLZ – $41.87 – NASDAQ), headquartered in Deerfield, Illinois, is the renamed Kraft Foods Inc. following the 2012 tax-free spin-off to shareholders of the North American grocery business. Following the contribution of coffee into a new joint venture, nearly 85% of MondelÄ“z’s $28 billion of revenue is derived from snacks, which include leading brands such as Oreo, LU, and Ritz biscuits, Trident gum, and Cadbury and Milka chocolates. On July 2, 2015, MondelÄ“z contributed its coffee business with DE Master Blenders 1753 to form a new coffee company, Jacobs Douwe Egberts, in return for €3.8 billion of proceeds and a 44% stake. This narrows the company’s product focus, as only 15% of revenue will be outside snacks, mostly Tang beverages and products such as Philadelphia cream cheese, which management may look to divest in the future as it executes on its plan to accelerate growth and improve margins in the faster growing snack business.
From the Gabelli Dividend Growth Fund third quarter 2015 commentary.
