What Is Mondelez International’s Competitive Advantage?
Mondelez International (NASDAQ: MDLZ) owns eight brands with at least $1 billion in annual revenue, including Oreo, Cadbury, Trident, Milka, LU, and Nabisco. Some of these brands have stood the test of time with Cadbury, LU, and Nabisco dating back to the nineteenth century (Cadbury and LU were around before the Civil War). Mondelez management labels these brands as Power Brands -- a label that is used to classify those products that are seeing the most growth, have advantaged assets, and have superior margins compared to other brands it owns. In total, Power Brands made up about 70% of Mondelez's $25.9 billion in net revenue for 2016.
But these iconic brands may not be as strong as they once were. The Oreo maker has been dealing with a major consumer shift in eating habits where more people are choosing "healthier" snacks that are free of high sugar and fat.
Consumers are losing their taste for the good stuff in life. IMAGE SOURCE: GETTY IMAGES
Source: Fool.com
Mondelez International Inc. A Stock
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