Mario Gabelli Comments on Mondelez International

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Aug 20, 2020

Mondelēz International Inc. (MDLZ, Financial) (0.5%) (MDLZ – $51.13 – NASDAQ),headquartered in Deerfield, Illinois, is the renamed Kraft Foods Inc. following the tax-free spin-off to shareholders of the North American grocery business on October 1, 2012. On July 2, 2015 Mondelez combined its coffee business with D.E Master Blenders 1753 to form a new coffee company, Jacobs Douwe Egberts, which completed its public offering in May 2020. Previously, MDLZ exchanged part of its stake in this coffee joint venture for ownership in Keurig Green Mountain, which was acquired by an investor group led by JAB Holding Co. in March 2016 and combined with Dr. Pepper Snapple Group in 2018. Today, the majority of the portfolio, nearly 90% of its $26 billion of revenue, is derived from snacking and includes leading brands such as Oreo, LU and Ritz biscuits, Trident gum, and Cadbury and Milka chocolates. The company continues to execute against its plan to accelerate revenue growth, which may include complementary acquisitions, while also steadily monetizing its coffee assets.

From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second-quarter 2020 shareholder commentary.