What Does Mondelez Own? | The Motley Fool (2024)

Mondelez International (MDLZ -0.62%) is a global snacking giant with a treasure trove of beloved brands. The company was formed in 2012 when Kraft Foods Group spun off its grocery business into what's now Kraft Heinz (KHC 1.28%). It retained its snack food business and rebranded it as Mondelez, which derives its name from words meaning world and delicious.

Mondelez holds the No. 1 global position in biscuits (cookies and crackers) and is the No. 2 player in chocolate behind Mars. It has a growing baked snacks portfolio and makes and sells gum and candy, various cheese and grocery items, and powdered beverage products for certain markets.

The company has steadily expanded its brand portfolio over the years. It has made nine acquisitions since 2018, growing its core categories and expanding into adjacent ones. Here's a look at some of the top companies Mondelez owns and the ones the food stock might consider acquiring next.

What does Mondelez own?

What companies does Mondelez own?

Mondelez owns several companies across the following categories: biscuits (sweet and savory), chocolate, cakes and pastries, and snack bars. It owns several iconic global brands that generate more than $1 billion in annual sales and several regional favorites with strong local market positions. Some of its top-selling brands include:

Oreo

Oreo is the top-selling global cookie brand, generating more than $1 billion in annual sales for the company. Oreo's history dates back to 1912 when Nabisco introduced the sandwich cookie. Kraft Foods acquired Oreo when it merged with Nabisco in 2000 in a $14.9 billion deal. The brand became part of Mondelez when Kraft spun off its grocery business in 2012.

Ritz

Nabisco introduced Ritz crackers in 1934. Mondelez acquired the brand after Kraft bought Nabisco in 2000 and subsequently spun off its grocery business in 2012.

Chips Ahoy!

Nabisco introduced the Chips Ahoy! chocolate chip cookies in 1964. Like many of its top-selling brands, Chips Ahoy! came to Mondelez through Kraft's acquisition of Nabisco in 2000.

Clif Bar

Mondelez acquired Clif Bar & Company in 2022 for $2.9 billion. The deal added Clif, Luna, and Clif Kid to the company's global snack bar business. The acquisition created a global snack bar player with $1 billion in annual sales.

Cadbury

Cadbury's history dates back to 1824. The brand features Cadbury Egg, Cadbury Dairy Milk chocolates, Flake, Wispa, Twirl and Eclairs chocolates, and Cadbury Bourneville drinking chocolate.

Kraft Foods bought Cadbury in 2010 for almost $20 billion. At the time, the deal created a global snack, confectionary, and quick meal powerhouse. Cadbury stayed with Mondelez in 2012 when Kraft spun off its grocery business.

Milka

The Milka chocolate brand dates back to 1901 and has changed hands several times over the years. Kraft Foods acquired the brand in 1990 when it bought Jacobs Suchard. It became part of Mondelez in 2012 after Kraft's spinoff of its grocery business.

Mondelez also owns several more notable brands, including many beloved regional brands. Here's a quick snapshot of some of its other noteworthy brands:

• BelVita: Kraft acquired the breakfast biscuit brand in 2007 as part of its $8.7 billion deal for Danone's (OTCMKTS:DANOY) biscuit and cereal business.
• Halls: Mondelez sells Halls as a cold relief product in North America and a candy in hotter, drier countries. It accounts for more than half of the global cough-drop sales. The company acquired the brand as part of its acquisition of Cadbury.
• Original Philadelphia: Introduced in 1880, Philadelphia is one of the world's most popular cream cheese products. Kraft acquired the company behind the brand (Phenix Cheese Company) in 1928. It's now jointly owned by Kraft Heinz and Mondelez International.
• Sour Patch Kids: Cadbury and the Malaco Licorice Company formed the Allen Candy Company in the 1970s to produce the soft gummy candy coated with sour sugar. Kraft Foods acquired the Allen Candy Company in the late 1990s, and now Mondelez produces them.
• Tang: Launched in 1957, Tang is a popular powdered beverage in Asia, Latin America, and the Middle East. Kraft acquired the brand when Phillip Morris (now Altria) bought its developer, General Foods, in 1987 and merged it with Kraft two years later. Mondelez now owns the brand in most countries, with Kraft Heinz owning it in North America.
• Tate's Bake Shop: Mondelez acquired the cookie maker in 2018 for $500 million.
• Toblerone: Kraft acquired the Toblerone Swiss chocolate brand (along with Milka) when it bought Jacobs Suchard in 1990. It became part of Mondelez when it separated from Kraft.
• Triscuit: Nabisco purchased the Shredded Wheat Company (maker of Triscuit snack crackers) in 1928. The company became part of Kraft when it acquired Nabisco. Subsequently, it stayed with Mondelez following the Kraft spinoff.
• Wheat Thins: Nabisco introduced Wheat Thins in 1947. Kraft acquired the brand when it bought Nabisco. It became part of Mondelez following its separation from Kraft.

Mondelez also owns the following brands:

• 7 Days, Alpen Gold, Barni, Clorets, Club Social, Cote D'Or, Daim, Enjoy Life, Freia, Grenade, Honey Maid, Hu, Kihn Do, Lacta, Lu, Marabou, Maynards Bassett's, Mikado, Perfect Snacks, Prince, Royal Baking Powder, Stride, Tiger, and Tuc.

Future companies Mondelez could buy

What companies could Mondelez buy in the future?

Mondelez is a serial acquirer. It has completed nine acquisitions since 2018, led by its $2.9 billion deal for Clif Bar & Company in 2022. The company's strategy is to acquire the opportunities that accelerate growth and plug holes in its portfolio:

As the chart shows, Mondelez likes to acquire companies that make healthier or premium products, either enhancing its existing core market position or expanding its reach into an adjacent category.

Mondelez is the undisputed leader in biscuits (sweet and savory), with a dominant 17.2% share of the $111 billion global market. It could acquire additional companies in this space, as it did in 2021 when it purchased Gourmet Foods to enter the fast-growing premium and well-being cracker market in Australia and New Zealand.

The company's next acquisition in the biscuit market could be another dominant local brand. For example, it could seek to acquire Britannia Industries, a leader in the Indian biscuit, bread, and dairy products market.

Mondelez also has a strong market position in chocolate. It's currently slightly behind Mars, at 12.7% of the $120 billion market. It most recently bought Mexico's leading confectionary company, Ricolino, for $1.3 billion in 2022 to expand its global share. Its next deal could vault it past Mars. Potential acquisition options include Storck, Pladis, Lotte, and Ritter Sport.

While Mondelez has the third-largest market position in the cakes and pastries category, it has only a 3.2% share of the $80 billion market. It has worked to enhance its position by making a couple of acquisitions in recent years, including buying Chipita Global in 2022, a high-growth leader in the Central and Eastern European croissants and baked snacks category.

Given its relatively small share of the massive market, it seems likely that Mondelez will continue making acquisitions in this category to capture more of the large, fragmented market. Its many potential acquisition opportunities include brands from large players, like Group Bimbo (which sold Ricolino to Mondelez). It could also buy a company like McKee Foods (maker of Little Debbie snacks, Drake's Cakes, Fieldstone Bakery snacks and cereal, and Sunbelt Bakery granola and cereal).

Mondelez also holds the third-largest position in the snack bars category, at 10% of the $17 billion market. It has made three deals over the past few years to build its position, including its 2022 purchase of Clif Bar.

Many of its top competitors in this category, such as Kind and Larabar, are owned by larger food companies (Mars and General Mills (GIS -0.4%), respectively). However, potential acquisition opportunities are out there, like fast-growing healthy snacking company That's It.

Although acquisitions are a core aspect of its growth strategy, Mondelez will also sell non-core brands to enhance its approach. For example, in late 2023, it sold its gum brands in developed markets, including Trident, Dentyne, and Chicklets in the U.S., along with several European brands.

It retained its gum business outside the U.S., Canada, and Europe, including Stride in China and all its other candy brands and products. The sale gave it the funds to accelerate the growth of its core chocolate, biscuits, and baked snacks categories.

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The bottom line on companies Mondelez owns

Mondelez owns some of the most iconic snacking brands, like Oreo, Cadbury, and Ritz. The company has also acquired several brands over the years, most recently Clif Bar, Ricolino, and Chipita. It expects to continue acquiring brands in the future as it grows its core categories and expands into adjacent ones.

Future deals will help further accelerate its growth. Mondelez believes this will enable it to create more value for shareholders who buy and hold stocks over the long term, which could make it a good stock investment.

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