Running head: MONDELĒZ INTERNATIONAL’S DIVERSIFICATION STRATEGY IN 2017 1
Mondelēz International’s Diversification Strategy in 2017
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MONDELĒZ INTERNATIONAL’S DIVERSIFICATION STRATEGY IN 2017 2
What is Mondelēz International’s corporate strategy? How has its corporate strategy
evolved since its independence in 2007?
Mondelez International’s corporate strategy is to capitalize some of their powerful
brands of snacks like Cadbury, Oreo, Milka and various others in more than 165 nations they
are selling and working in. The organization resulted from the spinoff of 2012 of Kraft Foods
North American business of grocery to the stakeholders. Kraft Food acquired various bands
with the help of mergers and acquisitions. In 1928, Kraft Cheese company merged with
makers of Philadelphia Cream Cheese company named Phenix Cheese Corporation. Such
kind of mergers and acquisitions took place till 2016 and shaped the company is business and
brand lineup.
In 1988, Kraft was purchased for $12.9 billion by Morris Companies. The focus of this
corporate strategy was to diversify the organization beyond its business of well-known
cigarettes which includes Virginia Slims, Parliament, Marlboro, and various other brands.
Before the acquisition of Kraft, some of the reputed brands were already acquired by Philip
Morris which includes Crystal Light, Tang, Oscar Maybes, Jell-O, and General Foods for
$5.6 billion.
In 2000, Philip Morris begins the divestiture of their non-tobacco businesses. The
purpose of this corporate strategy was to protect the business assets from tobacco litigation.
Kraft Foods got independence in 2001. Philip Morris sold almost 11% interest of the
company through an initial public offering in 2001. After that, this span of the rest of the
interest of the organization with a tax-free dividend to the shareholders of Altria group in
2007. Soon after the spinoff, Kraft Foods acquired the cookie business named Grouped
Danone’s European cracker and cookies. The deal was done for $7.6 billion.
MONDELĒZ INTERNATIONAL’S DIVERSIFICATION STRATEGY IN 2017 3
In 2008, Kraft Foods spun off Post cereals business including brands like Grape Nuts,
Honeycomb, Selects, Shredded Wheat, Pebbles, Honey Bunches of Oats. In 2007, there was a
recorded sale of $1.1 billion. In 2010, Kraft Foods divested North American pizza business
by selling it to Nestle for $3.7 billion. In the same year, they also acquired Cadbury based in
the United Kingdom for $18.5 billion. The Cadbury who is the maker of Cadbury chocolates,
Dentyne, Clorets breath freshening gum, Halls cough drops, and Stride chewing gum.
In 2011, Mondelez International started its operations with $35.8 billion revenue and
Incorporated the US snacks division and craft foods business in Europe as well as helping
markets in South America, Middle East Africa, Asia Pacific, and Eastern Europe. In 2015,
the organization exited the coffee business. In 2015 2016, the organization acquired Enjoy
Life Foods for $81 million and I wasted 50% interest in the Japanese coffee joint venture for
