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Hershey Media Report 9/8/16

National Coverage

Mondelez outlines U.S. growth plans after Hershey snub
Sep 7, 2016 | Reuters
By Jessica Kuruthukulangara

Mondelez International Inc (MDLZ.O), the maker of Oreo cookies and Cadbury chocolates, outlined on Wednesday its plans to expand in the United States, a week after abandoning its pursuit of U.S. confectioner Hershey Co (HSY.N). Mondelez, the second-largest confectionary company in the world, said on Wednesday it would bring to the United States its Milka Oreo chocolate bars that pairs Oreo cookies with Milka, which is popular in Europe.
Oreo chocolate bars key to snack giant Mondelez's 'big splash' in U.S.
Sep 7, 2016 | Chicago Tribune
By Greg Trotter

Moving on from Hershey's rejection of its recent overtures, Oreo-maker Mondelez International announced Wednesday its plan B to expand into the U.S. chocolate market: Oreo chocolate bars.
Eight stories you may have missed Wednesday from the world of business
Sep 8, 2016 | The Boston Globe

Brief mention of the rejected bid from Mondelez. Relevant portion pasted below.

Trade Coverage

Is Mondelez International Inc Going After The Hershey Company Again?
Sep 8, 2016 | Smart Stock News
By Blake Audett

Snubbed by Hershey Co (NYSE:HSY), Mondelez International Inc (NASDAQ:MDLZ) is pushing into the US chocolate market in a bid to revive its sales growth. Mondelez is making its presence in the US with its chocolate and candy bars. On Wednesday, the company outlined its strategy to expand in the country, a week after it abandoned its pursuit of Hershey.
Mondelez Unveils New Plan for U.S. Growth
Sep 7, 2016 | CFO.com
By Matthew Heller

A week after scrapping its bid to acquire Hershey, Mondelez International is now planning to generate U.S. growth through its own products, including an Oreo branded chocolate bar.
Mondelez Will Work On Upscale Chocolate, Oreo Candy Bars After Hershey Snub
Sep 7, 2016 | Consumerist
By Laura Northrup

Earlier this year, global snack giant Mondelez made a series of unsolicited offers to acquire Hershey, which the candy company turned down. If the company can’t have Hershey, though, what will it do? It announced plans today to expand its own chocolate offerings in both its upmarket and downmarket lines.
Mondelez to Bring Milka Oreo Bars to U.S.
Sep 7, 2016 | CSP Industry news

ondelez is doubling down on chocolate, announcing it will bring to the United States its Milka Oreo chocolate bars that pair Oreo cookies with Milka, a chocolate bar popular in Europe. The Milka Oreo chocolate bars already are available in more than 20 countries.
Chocolate War: Mondelez Plans to Go After Hershey's U.S. Business
Sep 8, 2016 | The Motley Fool
By Daniel B. Kline

In turning down Mondelez International's (NASDAQ:MDLZ) buyout offer, The Hershey Company (NYSE:HSY) has set itself up for a chocolate war. The iconic American brand turned down a $23 billion cash and stock bid from its sometime rival, which included an offer to keep the company's headquarters in Hershey, Pennsylvania. An acquisition would have immediately given Mondelez a strong position in the U.S. chocolate market.
Mondelez Still Has A Taste For Chocolate
Sep 8, 2016 | Benzinga
By Jayson Derrick

Mondelez International Inc MDLZ is hoping that hundreds of millions of consumers across the world have a sweet tooth for chocolate.
Active Runners in Thrust- Mondelez International (NASDAQ:MDLZ), Brunswick (NYSE:BC)
Sep 8, 2016 | Seneca Globe

Brief mention of the rejected bid from Mondelez. Relevant portion pasted below.
Mondelez (MDLZ) Stock Down, Outlines U.S. Growth Plans After Cancelled Hershey Deal
Sep 8, 2016 | The Street
By Annie Palmer

Shares of Mondelez (MDLZ) were lower in late-morning trading on Wednesday as the Deerfield, IL-based snack manufacturer detailed its U.S. growth strategy following its cancelled bid for Hershey (HSY) one week earlier.
Lowdown: NFL Splits Auto Sponsors as Ford Joins Hyundai in Three-Year Deal
Sep 7, 2016 | Advertising Age

Brief discussion of the rejected bid from Mondelez. Relevant portion pasted below.
Mondelez to Launch Oreo and Green & Black’s in US After Spurn From Hershey
Sep 8, 2016 | Food Ingredients First

Mondelez International is undertaking a major onslaught on the US chocolate market by launching two key brands, after its attempt to make up for its weakness in the US chocolate market by buying Hershey was spurned.
Mondelez details sweetened US chocolate growth strategies
Sep 8, 2016 | Food Dive
By Carolyn Heneghan

Mondelez announced plans to get into the U.S. chocolate market by pairing its Oreo brand with iconic European chocolate brand Milka for a cross-category innovation in the mainstream segment, according to a company statement.
Mondelez announces push into U.S. chocolate market after dropping Hershey bid
Sep 7, 2016 | Candy Industry
By Alyse Thompson

Mondelez International has announced plans to expand its presence in the U.S. chocolate market by focusing on two signature brands. The announcement, made Wednesday at Barclays Global Consumer Staples Conference, comes a week after the Illinois-based snack and confectionery giant halted discussions with The Hershey Co. about acquiring the company. Hershey’s Board of Directors rejected Mondelez’ indication of interest in June.
Mondelez Details Strategy for U.S. Growth (video)
Sep 7, 2016 | The Street
By Anders Keitz

Shares of Mondelez International (MDLZ) were lower Wednesday as the snack manufacturer detailed its U.S. growth strategy after it abandoned its bid for Hershey (HSY) . Mondelez said that it plans to bring its Milka Oreo chocolate bars to the U.S. The company hopes that the Oreo cookie with Milka chocolate will take a bite out of the $14 billion U.S. chocolate market. It is also expanding its Green & Blacks products in the U.S. premium segment. Mondelez is also hoping to expand its e-commerce operations with the goal of generating approximately $1 billion in revenue in 2020. View clip here: https://www.thestreet.com/video/13697294/mondelez-details-strategy-for-u-s-growth.html
Oreo Candy Bars Are Coming Soon
Sep 7, 2016 | Refinery29
By Kathryn Lindsay

Brief mention of the rejected bid from Mondelez in a greater article about Mondelez.
Oreo Candy Bars Are Coming to the U.S. Soon
Sep 8, 2016 | Teen Vogue
By Laura Stampler

Brief mention of the rejected bid from Mondelez in a greater article about Mondelez.
Mondelez eyeing growth in US chocolate
Sep 7, 2016 | Just Food
By Katy Askew

Brief mention of the rejected bid from Mondelez in a greater article about Mondelez.
Mondelez's Revenge: Oreo Chocolate Bars Coming To U.S.
Sep 8, 2016 | Marketing Daily
By Karlene Lukovitz

If you can’t buy ’em, compete head on with ’em. Having been spurned in its recent attempt to acquire Hershey, Mondelez International, the U.S.’s largest chocolate company, is nevertheless pursuing its goal to become a leading player in the $14-billion U.S. chocolate market.
Mondelez Expands Into U.S. Chocolate Market With Oreo-Branded Candy Bars
Sep 8, 2016 | Vending Market Watch

Mondelez International is expanding in the U.S. chocolate market. The company will roll out Oreo-branded candy bars nationally in 2017, reports Bloomberg. The candy bars will be made with Milka-branded chocolate and are currently distributed in about 20 countries.

Local Coverage

Beaver County firm gets state loan
Sep 8, 2016 | Pittsburg Post Gazette

Brief discussion of the rejected bid from Mondelez. Relevant portion pasted below.
Candy bars made of Oreos, anyone?
Sep 7, 2016 | Houston Chronicle

Moving on from Hershey's rejection of its recent overtures, Oreo maker Mondelez International announced Wednesday its plan B to expand into the U.S. chocolate market: Oreo chocolate bars.

Full Text of Stories Below

National Coverage

Mondelez outlines U.S. growth plans after Hershey snub

Sep 7, 2016 | Reuters

By Jessica Kuruthukulangara

Mondelez International Inc (MDLZ.O), the maker of Oreo cookies and Cadbury chocolates, outlined on Wednesday its plans to expand in the United States, a week after abandoning its pursuit of U.S. confectioner Hershey Co (HSY.N).
Mondelez, the second-largest confectionary company in the world, said on Wednesday it would bring to the United States its Milka Oreo chocolate bars that pairs Oreo cookies with Milka, which is popular in Europe.
The Milka Oreo chocolate bars, which are already available in more than 20 countries, are targeted at the mainstream segment of the roughly $14 billion U.S. chocolate market, Mondelez said.
In the premium segment, Mondelez is expanding its Green & Blacks products, which contain no artificial colors, flavors or preservatives.
Mondelez said on Aug. 29 it was no longer pursuing the acquisition of Hershey, the number five confectionary company in the world, two months after the company turned down its $23 billion cash-and-stock bid.
The merger of Mondelez with Hershey, which makes Hershey's Kisses and Reese's Peanut Butter Cups, would have expanded the former's limited U.S. footprint and created the world's largest confectioner.
Instead, now Mondelez has to chalk out its own course.
Mondelez also said on Wednesday it was strengthening its sales and distribution operations, enhancing in-store execution and chalking out better routes to market, especially in emerging markets.
The company said it was building up its e-commerce snacks business with the aim of generating at least $1 billion in revenue by 2020. Analysts expect Mondelez to generate total revenue of about $30 billion in 2020, according to Thomson Reuters I/B/E/S.
The chocolate maker reaffirmed its 2016 adjusted operating income margin forecast of 15 percent to 16 percent and 2018 forecast of 17 percent to 18 percent.
The company said it was on track to deliver free cash flow of at least $1.4 billion in 2016, and that it expected that number to double in 2018.
Mondelez shares were down 0.9 percent at $44.10 in morning trading.

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Oreo chocolate bars key to snack giant Mondelez's 'big splash' in U.S.

Sep 7, 2016 | Chicago Tribune

By Greg Trotter

Moving on from Hershey's rejection of its recent overtures, Oreo-maker Mondelez International announced Wednesday its plan B to expand into the U.S. chocolate market: Oreo chocolate bars.
Calling it a "big splash" into the U.S. chocolate market, Mondelez executives announced the move at the Barclays 2016 Consumer Staples Conference. Later this year, the Deerfield-based global snacking and confectionery company will begin selling Oreo branded chocolate bars made with the company's Milka chocolate; it also will launch new varieties of premium chocolate bars under its Green & Black's brand. The new bars will be made in Europe.
Last week, Mondelez announced it was ending its efforts to acquire Hershey, the dominant chocolate-maker in the U.S.
"We have a very small presence in the U.S. (chocolate market), so entering this category represents significant white space opportunity for us," said Tim Cofer, Mondelez chief growth officer, in a presentation at the Barclays conference.
The Oreo bars will come in different types and sizes. One version has "bits of Oreo cookie mixed with creme enrobed in (Milka) chocolate," said Mondelez spokesman Michael Mitchell, whereas another of the chocolate bars has an Oreo wafer in the middle with creme on the top and bottom. The bars will be sold in the U.S. on a limited basis beginning in the fourth quarter with a full product launch planned for early next year.
Seventeen Green & Black's varieties will hit the shelves by the end of the year, followed by an additional 20 next year in advance of Valentine's Day, Mitchell said.
The U.S. chocolate market is about $14 billion, though per capita consumption of chocolate lags behind that of some European markets, Cofer said.
A merger with Hershey would have given Mondelez access to American consumers with already established chocolate products. Mondelez, which sells Cadbury and Milka chocolate abroad, is already the second largest chocolate company globally with about $13.4 billion in sales, but only the eighth largest in the U.S. with about $326 million, according to combined sales and part-year projections for 2016 from Euromonitor International.
Instead, Mondelez is hoping its new products will help stateside sales. The Oreo chocolate bars, which are made with Milka chocolate — a brand better-known in European markets — already are sold in more than 20 countries globally. The new Green & Black's products are intended to appeal to shoppers who prefer more "premium" chocolate that's made from sustainably sourced cocoa and free from artificial colors, flavors or preservatives.
Mondelez, which came into existence when Kraft Foods split into two publicly traded companies in 2012, has been under pressure from shareholders to cut costs and improve profit margins.
Despite the Hershey rejection, Mondelez will continue to focus on "bolt-on" acquisitions and consider more strategic opportunities like Hershey "in a disciplined way," said Brian Gladden, Mondelez executive vice president and chief financial officer, on Wednesday.
At the Barclays event, Mondelez executives highlighted gains made in expanding profit margins and reducing costs, primarily through overhauling the supply network. In Chicago, that's translating into the loss of about 600 jobs from the company's longtime Nabisco plant on the Southwest Side as Mondelez shifts some production to a plant in Mexico equipped with the so-called lines of the future.
Globally, Mondelez has closed or sold 39 manufacturing sites and built or modernized 70 since 2013, said Daniel Myers, executive vice president of integrated supply chain, on Wednesday.
And while the company's ramping up its focus on "well-being snacks," as a way of appealing to today's health-conscious consumers, cookie monsters need not worry. Myers cited Oreo Thins and Chips Ahoy Thins as recent examples of "well-being" innovation, along with products like BelVita breakfast biscuits and Good Thins.
For the foreseeable future, cookies and chocolate will remain crucial to the Mondelez plan.

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Eight stories you may have missed Wednesday from the world of business

Sep 8, 2016 | The Boston Globe

Mondelez to market Oreo candy bars
Mondelez International Inc. wanted Hershey Kisses and Reese’s Pieces. The global snack giant will have to settle for Oreo candy bars instead. After abandoning a bid last month to acquire Hershey Co., Mondelez is making its own play for US chocolate consumers. The Deerfield, Ill.-based company will roll out Oreo-branded candy bars — already available in some countries overseas — in an attempt to crack a domestic market where it has little presence. The Oreo candy bars, made with Milka-branded chocolate, will start to hit US stores in October and will be available nationally in 2017, according to the company.

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Trade Coverage

Is Mondelez International Inc Going After The Hershey Company Again?

Sep 8, 2016 | Smart Stock News

By Blake Audett

Snubbed by Hershey Co (NYSE:HSY), Mondelez International Inc (NASDAQ:MDLZ) is pushing into the US chocolate market in a bid to revive its sales growth. Mondelez is making its presence in the US with its chocolate and candy bars. On Wednesday, the company outlined its strategy to expand in the country, a week after it abandoned its pursuit of Hershey.
As part of the strategy, the company would bring its Milka Oreo chocolate bars to the US. Popular in Europe, these Milka Orea chocolate bars pair its product Oreo cookies with Milka. Already available in over 20 countries, these chocolate bars would be targeted to the mainstream segment of the $14 billion worth of chocolate market in the US. Besides the mainstream market, the company is targeting the premium niche by expanding its Green and Black products which contain no artificial preservatives, flavors, or colors.
Last week, Mondelez stopped its pursuit of Hershey after the latter turned down its offer of a cash-and-stock deal worth $23 billion in June. The latest move to expand its wings in the US comes as a way to crack the local market where Mondelez has little presence and dominance.
The move coincides with the company’s announcement last month that it would enter the chocolate category in China with a new 12-item line under the Milka brand. Credit Suisse has released a report today suspecting that the key objective of these white space launches is to build more pressure on Hershey to resume merger talks with the company.
Even though the management has announced that it would not pursue Hershey, it is “certainly possible that Hershey’s board could return to the negotiating table” if not now then next year. This notion holds more possibility if Hershey’s sales trends continue to decelerate and if the Hershey Trust reconstructs its board of directors with executives who are willing to revive merger talks with Mondelez.
Credit Suisse reiterates its Outperform rating on the stock, with a price target of $51 but states that the chocolate expansion in the US still carries a higher degree of execution risk. Although it makes sense for Mondelez to expand its presence in the market from an M&A perspective, Credit Suisse is worried about the level of investment this strategy will require. It says that if the chocolate giant is serious about expanding into new categories, it would need to inject substantial resources to strengthen its presence.
This also comes without a guarantee that the expansion would impact the Hershey Trust’s attitude to reach a consensus for a viable bid. All this would only deviate the attention of Mondelez’ management from its core business which is already facing an increasing number of macro-economic and competitive challenges.

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Mondelez Unveils New Plan for U.S. Growth

Sep 7, 2016 | CFO.com

By Matthew Heller

A week after scrapping its bid to acquire Hershey, Mondelez International is now planning to generate U.S. growth through its own products, including an Oreo branded chocolate bar.
The world’s second-largest confectionery company said Wednesday it would launch Oreo bars made with its Milka chocolate in the U.S., initially on a limited basis beginning in the fourth quarter with a full product launch planned for early next year.
Also heading for U.S. chocolate lovers are new varieties of Mondelez premium chocolate bars under its Green & Black’s brand.
“With our strong brands and global expertise in chocolate, we see enormous potential to grow our U.S. business and expand the category,” Tim Cofer, Mondelez’ chief growth officer, said in a news release.
Mondelez is only the eighth largest confectioner in the U.S. with about $326 million in sales. Cofer noted that while the U.S. is the world’s largest chocolate market, valued at $14 billion, per capita consumption is only about half that of many developed European chocolate markets.
The $23 billion merger with Hershey would have created the world’s largest confectioner, giving Mondelez access to such iconic products as Hershey’s Kisses and Reese’s Peanut Butter Cups. But after Hershey rejected the offer, Mondelez announced Aug. 29 it had ended merger talks.
As part of its new strategy, the company is turning to what it called the “unique cross-category innovation” of pairing Oreo with Milka. The product is already available in more than 20 countries and is aimed at the mainstream segment of the U.S. chocolate market.
The new Green & Blacks range is targeted at the premium segment, with 17 varieties scheduled to hit U.S. shelves by the end of the year, followed by an additional 20 next year in advance of Valentine’s Day.
Mondelez also said Wednesday it was expanding its e-commerce snacks business with the aim of generating at least $1 billion in revenue by 2020. In trading Wednesday, the company’s shares fell 1.8% to $43.60.

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Mondelez Will Work On Upscale Chocolate, Oreo Candy Bars After Hershey Snub

Sep 7, 2016 | Consumerist

By Laura Northrup

Earlier this year, global snack giant Mondelez made a series of unsolicited offers to acquire Hershey, which the candy company turned down. If the company can’t have Hershey, though, what will it do? It announced plans today to expand its own chocolate offerings in both its upmarket and downmarket lines.
Mondelez, the name of what used to be the snack portion of Kraft Foods, wanted to expand its candy business in the United States by buying the fifth-largest candy company. It even offered to make Hershey, PA its headquarters and rename the entire company Hershey. Yet Hershey’s shareholders still weren’t interested, so what Mondelez has to do now is make more candy money in the U.S. using the products that it already has.
Even though its subsidiary Nabisco probably hasn’t run out of exotic Oreo flavor ideas yet, the company is now reversing the idea and flavoring other things like Oreos. Specifically, its own candy bars: it announced plans to bring Milka chocolate bars with Oreo filling to this country.
It’s also aiming at the market of higher-end chocolate, but not so high-end that you can’t buy it in a grocery store. The company plans to expand Green & Black’s, its brand of organic chocolate bars.
Mondelez also has an interesting goal of making $1 billion in e-commerce snack sales in the year 2020. What do e-commerce snack sales look like, and will it become cheap and convenient to order, say, cases of cookies on brand websites?

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Mondelez to Bring Milka Oreo Bars to U.S.

Sep 7, 2016 | CSP Industry news

ondelez is doubling down on chocolate, announcing it will bring to the United States its Milka Oreo chocolate bars that pair Oreo cookies with Milka, a chocolate bar popular in Europe.
The Milka Oreo chocolate bars already are available in more than 20 countries.
The move targets the roughly $14 billion U.S. chocolate market, which Mondelez believes has room for growth, especially compared with chocolate consumption in other countries. “Per capita consumption is only about half that of many developed European chocolate markets," said Tim Cofer, chief growth officer.
Mondelez also has announced it is expanding its Green & Black's products, following an overall trend of an increase in consumer demand for products with no artificial colors, flavors or preservatives. It plans to add 70% dark chocolate in tablets, share packs and gift packs.
The product announcements mean more choices for retailers as they grapple with the growing number of new and expanded product lines in snacks and candies. Mondelez discussed the new items during a presentation at the Barclays Global Consumer Staples Conference in Boston. The announcement follows closely on the heels of Mondelez abandoning its pursuit of The Hershey Co. on Aug. 29.
A merger of Mondelez with Hershey, which makes Hershey's Kisses and Reese's Peanut Butter Cups, would have expanded the former's limited U.S. footprint and created the world's largest confectioner. Mondelez, the maker of Cadbury chocolates as well as Oreos, is the second-largest confectionary company in the world.
Since the failure of the Hershey’s merger, industry analysts continue to speculate that Mondelez may itself be an acquisition target with names such as Kraft Heinz and PepsiCo being floated. Or Mondelez may hope to gobble another confectioner, possibly Ferrero or Perfetti Van Melle.
Mondelez International Inc. is based in Deerfield, Ill. The snacks and confection company had 2015 net revenues of approximately $30 billion.

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Chocolate War: Mondelez Plans to Go After Hershey's U.S. Business

Sep 8, 2016 | The Motley Fool

By Daniel B. Kline

In turning down Mondelez International's (NASDAQ:MDLZ) buyout offer, The Hershey Company (NYSE:HSY) has set itself up for a chocolate war.
The iconic American brand turned down a $23 billion cash and stock bid from its sometime rival, which included an offer to keep the company's headquarters in Hershey, Pennsylvania. An acquisition would have immediately given Mondelez a strong position in the U.S. chocolate market.
Currently, the company has a strong international presence with its Cadbury line, Milka chocolate bars, and its upscale Green & Blacks products, which contain no artificial colors, flavors, or preservatives. In the U.S., it has limited exposure in the mainstream chocolate market, but it does own Oreo, Chips Ahoy!, and Dentyne gum.
In a press release, Mondelez CEO Irene Rosenfeld explained why her company wanted Hershey and what happens next:
Our proposal to acquire Hershey reflected our conviction that combining our two iconic American companies would create an industry leader with global scale in snacking and confectionery and a strong portfolio of complementary brands. Following additional discussions, and taking into account recent shareholder developments at Hershey, we determined that there is no actionable path forward toward an agreement. While we are disappointed in this outcome, we remain disciplined in our approach to creating value, including through acquisitions, and confident that our advantaged platform positions us well for top-tier performance over the long term.
That's a very diplomatic way to say, "You don't want our money. Now we're gunning for you." Hershey saying no to a deal blocked Mondelez's easy path to the American chocolate eater and now the company has elected to take the hard road.What is Mondelez doing?
Like trying to show up the girl or boy who would not go out with you by losing weight, buying better clothes, and dating someone even better looking, Mondelez wants to show up Hershey in its home market. To do that the company will be relying on one of the familiar brands it owns in order to introduce one which most Americans will not know.
The company, the second-largest confectionery company in the world, said in a call earlier this week, that it plans to bring its Milka Oreo chocolate bars to the U.S., Reuters reported. Already sold in more than 20 countries, Milka Oreo is targeted at the mainstream segment of the roughly $14 billion U.S. chocolate market, Mondelez said.
In addition to using Oreo to launch Milka, Mondelez also plans to expand its Green & Blacks product line in the U.S. and around the world.
Overall, the global company is not just targeting Hershey in its home market. Mondelez also plans on "strengthening its sales and distribution operations, enhancing in-store execution and chalking out better routes to market, especially in emerging markets," according to Reuters. It expects to also grow its e-commerce snack business to $1 billion in revenue by 2020.This is going to be a fight
Hershey pretty emphatically turned down Mondelez and now it must fend off an aggressive new competitor. It will take time for any company to challenge Hershey's U.S. dominance, but pairing Milka with Oreo could lead consumers to try the new brand. That might be enough for Mondelez to begin building awareness for its chocolate line.
This will not be a short battle. Hershey owns an array of iconic products that Mondelez cannot easily counter simply by leaning on Oreo or its other brands. This battle should lead to increased innovation, more choice for consumers, and maybe a new player emerging in the U.S. chocolate market.
That may happen, but right now Hershey dominates the market while Mondelez merely has a good gimmick to try to wedge the door open. Whether that can lead to it building a major brand in the US. remains to be seen.

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Mondelez Still Has A Taste For Chocolate

Sep 8, 2016 | Benzinga

By Jayson Derrick

Mondelez International Inc MDLZ is hoping that hundreds of millions of consumers across the world have a sweet tooth for chocolate.
In a research report Thursday, Robert Moskow of Credit Suisse noted Mondelez announced during a presentation to investors it plans on expanding its presence in the U.S. chocolate market. The company will introduce a new Oreo-Milka co-branded product and also expand its Green & Black brands.
Moskow pointed out that the domestic expansion coincides with Mondelez's recent announcement it will enter the chocolate market in China and sell 12 unique items under the Milka brand.
However, the analyst suggested that the new expansion announcements is a tactic to "increase pressure" on Hershey Co HSY 0.78% to resume merger talks. Specifically, if Hershey's sales trends continue to decelerate, perhaps at the expense of Mondelez, then Hershey's board of directors could return to the negotiating table and reopen discussions.
On the other hand, Mondelez will need to allocate "significant" resources behind its new product launches while it also comes "without a guarantee" that it will result in Hersey returning to the table. In addition, Mondelez could also be distracted from its focus on the core business which faces its own sets of competitive and macro challenges.
"To make matters more complicated, the Oreo-Milka product itself presents a confusing picture for consumers with the 'Oreo' brand displayed on the package and the unfamiliar 'Milka' brand stamped on the chocolate tablet," the analyst wrote.
Nevertheless, Moskow believes that while the snack category has seen its growth slow down, consumers "do not seem to be in any hurry to stop treating themselves to occasional indulgences." As such, the analyst still has a "strong appreciation" for Mondelez as a stand-alone entity and continue to believe the stock will outperform its peers as it is on track toward achieving or even exceeding its 2018 operating margin target of 17 to 18 percent.
Shares of Mondelez remain Outperform rated with an unchanged $51 price target.
At time of writing, Mondelez was flat on the day and Hershey was down 0.7 percent at $98.44.

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Active Runners in Thrust- Mondelez International (NASDAQ:MDLZ), Brunswick (NYSE:BC)

Sep 8, 2016 | Seneca Globe

Mondelez International, Inc. (NASDAQ:MDLZ) [Trend Analysis] considering as most desiring stocks in active trading lead, shares reduced following opening to traded at $43.60 with volume of 7.25 Million shares. Mondelez International (MDLZ) were lower as the snack manufacturer detailed its U.S. growth strategy following it abandoned its offer for Hershey (HSY). Mondelez stated that it plans to bring its Milka Oreo chocolate bars to the U.S. The firm hopes that the Oreo cookie with Milka chocolate will take a bite out of the $14 billion U.S. chocolate market. It is also expanding its Green & Blacks products in the U.S. premium section. Mondelez is also hoping to expand its e-commerce operations with the goal of generating about $1 billion in income in 2020.
MDLZ is ahead its 52-week low with 22.55%and going down from its 52-week high price with -6.93%. The firm’s shares performance for the last one month was 0.41% and -2.55% in the previous week.
As the incomes measures, firm has operation margin of 31.90% in the following twelve months with net profit margin of positive 28.00%. The Firm showed a positive 28.00% in the net profit margin. Firm’s yearly sales growth for the past five year was -1.20%.

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Mondelez (MDLZ) Stock Down, Outlines U.S. Growth Plans After Cancelled Hershey Deal

Sep 8, 2016 | The Street

By Annie Palmer

NEW YORK (TheStreet) -- Shares of Mondelez (MDLZ) were lower in late-morning trading on Wednesday as the Deerfield, IL-based snack manufacturer detailed its U.S. growth strategy following its cancelled bid for Hershey (HSY) one week earlier.
Mondelez had upped its offer to $115 per share last week, but the Derry Township, PA-based snack confectionery manufacturer said talks would need to start at $125 per share in order for a deal to continue.
The merger would have created the world's largest confectioner and expanded Mondelez's U.S. footprint, according to Reuters.
Mondelez said today it plans to bring its Milka Oreo chocolate bars to the U.S., targeting them at the mainstream segment of the approximately $14 billion U.S. chocolate market. Milka Oreo bars pair Oreo cookies with Milka chocolate and have seen success in Europe, Reuters reports.
The company is also expanding its Green & Blacks products in the U.S. premium segment. The products don't contain any artificial flavors, colors or preservatives.
Mondelez is boosting its sales and distribution operations and plans to define growth initiatives in new markets, the company said in a statement. It also hopes to expand e-commerce operations with the goal of generating approximately $1 billion in revenue in 2020.
Additionally, the company reaffirmed its 2016 and 2018 adjusted operating income margin forecasts of 15% to 16% and 17% to 18%, respectively.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Mondelez as a Buy with a ratings score of B. This is driven by a number of strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. The team feels its strengths outweigh the fact that the company shows weak operating cash flow.

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Lowdown: NFL Splits Auto Sponsors as Ford Joins Hyundai in Three-Year Deal

Sep 7, 2016 | Advertising Age

A week after abandoning its plan to buy Hershey, Mondelez International is making chocolate plans on its own. On Wednesday, Mondelez said it will pursue a major expansion into the U.S. chocolate market. Those plans include marketing an Oreo Milka chocolate bar in the United States, a product that's already a hit for the company elsewhere.
Mondelez already sells the Milka with Oreo product in about 20 markets, including Germany. And It is branded as Cadbury Dairy Milk with Oreo in big Cadbury markets such as the U.K. and Australia. "With our strong brands and global expertise in chocolate, we see enormous potential to grow our U.S. business and expand the category," Chief Growth OfficerTim Cofer said in a statement. Other U.S. plans include expanding its higher-endGreen & Blacks line. Mondelez is currently a distant 8th in the U.S. chocolate confectionery market with 1.7% market share, well below leader Hershey's 31.6% share, according to Euromonitor International. Globally, Mondelez ranks second behind Mars, with 13.6% market share.

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Mondelez to Launch Oreo and Green & Black’s in US After Spurn From Hershey

Sep 8, 2016 | Food Ingredients First

Mondelez International is undertaking a major onslaught on the US chocolate market by launching two key brands, after its attempt to make up for its weakness in the US chocolate market by buying Hershey was spurned.
Mondelez is launching its Oreo brand, currently available in over 20 countries, in the US next year, as it looks to establish itself in a US chocolate market where it has scant presence.
Its Oreo brand is made with its Green & Black’s chocolate, its sustainable chocolate brand which is popular in parts of Europe.
In the premium segment, Mondelez is to sell its Green & Black’s organic brand in more stores in the US.
Mondelez will also launch a new range under the organic brand, which will contain no artificial colors, flavors or preservatives.
The launch of the two brands in the US would appear to suggest that Mondelez, which was hived off from Kraft Foods in 2012 and is the second biggest seller of chocolate globally, is prepared to go it alone to establish a stronger position in the US chocolate market.
Mondelez walked away from takeover talks with Hershey last month, after it $23bn offer was rejected.
Tim Cofer, Chief Growth Officer, said: "With our strong brands and global expertise in chocolate, we see enormous potential to grow our US business and expand the category.”
“The US is the world's largest chocolate market, valued at $14 billion. However, per capita consumption is only about half that of many developed European chocolate markets."
Separately, Mondelez flagged up that its effort to build a strong e-commerce business was bearing fruit.
It said that the relaunch of its Belvita biscuits brands on Amazon has generated a sales uplift of more than 60 percent.
Additionally, it said a live stream of Chinese celebrities on Alibaba's Tmall platform generated a tenfold increase in Oreo's e-commerce sales.
During the first six months of the year, Mondelez's e-commerce sales were up more than 30 percent.
In the six months to June 30, Mondelez reported sales of $12.8bn and an operating income of $1.4bn.
"Our advantaged platform positions us as one of the few industry players with the assets and ambition to deliver strong, sustainable growth on both the top and bottom lines, while we also return significant cash to our shareholders," said Brian Gladden, chief financial officer.
"Since the launch of the company in October 2012, Mondelez International has delivered total shareholder return of 72 percent, which has outpaced both the S&P 500 and its consumer staples peers," he added.

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Mondelez details sweetened US chocolate growth strategies

Sep 8, 2016 | Food Dive

By Carolyn Heneghan

Mondelez announced plans to get into the U.S. chocolate market by pairing its Oreo brand with iconic European chocolate brand Milka for a cross-category innovation in the mainstream segment, according to a company statement.
The company will also significantly expand its sustainably-sourced Green & Black's premium chocolate brand with 70% dark chocolate in tablets, as well as sharing and gift packs.
The Oreo-Milka collaboration is already available in more than 20 countries, and the company said it has expanded with velocities that are more than double the category average.
Mondelez's growth plan includes "contemporizing the core portfolio through fearless marketing and well-being snacks, filling key consumer and geographic white spaces, and driving sales and channel ubiquity, especially through e-commerce," the company said in a news release. These sentiments echo those the company outlined in its growth strategy last year.
The company's plans for expansion into the U.S. chocolate market show an initiative to move forward from the opportunity it lost when Hershey turned down Mondelez's takeover bid earlier this year. Hershey would have delivered the strong U.S. chocolate market presence Mondelez is after. But it didn't take long after Mondelez announced it wasabandoning its pursuit of Hershey for the company to announce chocolate growth initiatives in China and now the U.S.
Not long after Hershey rejected the takeover offer, Credit Suisse released a report detailing "a new sense of urgency at the Hershey Co. to boost shareholder value and improve fundamental performance." What experts didn't seem to realize was that sense of urgency seems more apparent at Mondelez, which has been under pressure from investors tomaximize revenue and profits or consider selling itself to a competitor.
The Oreo-Milka partnership demonstrates a benefit that other manufacturers may try to pursue: innovation through cross-category and cross-brand integration. By slimming down to focus on related categories like confections and snacks, Mondelez's portfolio is ripe with these partnership opportunities, including pairing different indulgences orsweet and savory snacks. This particular partnership also enables Mondelez to bring a typically European brand to the U.S. to add an international flavor and appeal to one of its most popular U.S. brands, Oreo.
Mondelez has continued to struggle with top-line growth, per recent earnings reports. But its latest moves to expand its dominance in the chocolate category could be enough to dampen investors' concerns and deliver shareholder value.

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Mondelez announces push into U.S. chocolate market after dropping Hershey bid

Sep 7, 2016 | Candy Industry

By Alyse Thompson

Mondelez International has announced plans to expand its presence in the U.S. chocolate market by focusing on two signature brands.
The announcement, made Wednesday at Barclays Global Consumer Staples Conference, comes a week after the Illinois-based snack and confectionery giant halted discussions with The Hershey Co. about acquiring the company. Hershey’s Board of Directors rejected Mondelez’ indication of interest in June.
Mondelez will introduce to the United States an Oreo-based candy bar available in 20 countries and expand offerings through its premium line Green & Blacks.
“With our strong brands and global expertise in chocolate, we see enormous potential to grow our U.S. business and expand the category,” says Tim Cofer, Mondelez chief growth officer. “The United States is the world’s largest chocolate market, valued at $14 billion. However, per capita consumption is only half that of many developed European chocolate markets.”
The Oreo bar will be coated in Milka chocolate, another Mondelez brand. Using chocolate sourced through the Cocoa Life program, the Green & Blacks range will feature 70 percent dark chocolate in tablets, as well as in gift and sharing packs.
Cofer also outlined plans that, he hopes, will make Mondelez a global leader in well-being snacks by 2020. The company, which has released “thin” versions of some of its mainstay brands, expects sales of those products to surpass $300 million this year.
Mondelez will also look to build its e-commerce snacks business with the goal of generating $1 billion in revenue by 2020.

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Mondelez Details Strategy for U.S. Growth (video)

Sep 7, 2016 | The Street

By Anders Keitz

Shares of Mondelez International (MDLZ) were lower Wednesday as the snack manufacturer detailed its U.S. growth strategy after it abandoned its bid for Hershey (HSY) . Mondelez said that it plans to bring its Milka Oreo chocolate bars to the U.S. The company hopes that the Oreo cookie with Milka chocolate will take a bite out of the $14 billion U.S. chocolate market. It is also expanding its Green & Blacks products in the U.S. premium segment. Mondelez is also hoping to expand its e-commerce operations with the goal of generating approximately $1 billion in revenue in 2020.
View clip here: https://www.thestreet.com/video/13697294/mondelez-details-strategy-for-u-s-growth.html

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Oreo Candy Bars Are Coming Soon

Sep 7, 2016 | Refinery29

By Kathryn Lindsay

After giving us practically everyflavor combination on the planet, those geniuses over at Oreo are giving the US public what it really needs: Oreo candy bars.
Bloomberg reports that Mondelez International Inc., parent company of the black-and-white cookie, already sells the candy bar in around 20 countries worldwide, but are finally bringing it to U.S. stores starting in October.
The candy bar riffs on the classic cookie sandwich, containing a creme filling and bits of the cookie, all covered in "Milka" chocolate. Another version of the candy bar puts the cookie in the center of the chocolate with creme on either side. No matter how you slice it, an Oreo and candy combination can do no wrong.
This sudden introduction, Bloomberg reports, is likely due to Mondelez International Inc’s failure to acquire Hershey Co. after the chocolate empires couldn’t come to a deal last month. Instead, Mondelez is pushing chocolate of their own, and this Oreo twist is sure to give it an edge.
“Nowhere is Oreo stronger than in the U.S.,” says Tim Cofer, the company's chief growth officer. “We think this will drive the mainstream chocolate category in the U.S.”
The Oreo candy bar will be nationally available by 2017 — that is, however, if I haven’t eaten them all.

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Oreo Candy Bars Are Coming to the U.S. Soon

Sep 8, 2016 | Teen Vogue

By Laura Stampler

Oreo has a thing for candy.
You can buy Swedish Fish flavored Oreos, candy corn flavored Oreos, cotton candy flavored Oreos, and now... you're going to be able to eat Oreo flavored candy bars!
Bloomberg reports that Oreo owner Mondelez International Inc. wanted to buy (but was rejected by) Hershey Co. to boost its chocolate sales. But it has turned heartbreak into something delicious — deciding to make Oreo cookies into chocolate candy bars to raise sales instead.
According to Refinery29, the cookie flavored candy bar is already available in 20 different countries but has yet to make its American debut. But never fear: It will start rolling out in U.S. stores this October — right in time for Halloween — and will roll out nationally in 2017.
Your dentist might not love the news of this brand new sweet, but we can't wait to try it.

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Mondelez eyeing growth in US chocolate

Sep 7, 2016 | Just Food

By Katy Askew

Mondelez International has outlined its latest plans of how it aims to grow in the US chocolate market, where it is extending its organic Green & Black's chocolate range and launching cross-branded Milka and Oreo items.
Speaking at the Barclays Global Consumer Staples Conference today (7 September), Mondelez's chief growth officer, Tim Cofer, said the company wants to use its brands and expertise to ramp up its US chocolate operations, which are relatively small. Mondelez, which recently abandoned its attempt to takeover US chocolate giant Hershey, said it aims to capitalise on the potential for increased chocolate consumption in the country.
"With our strong brands and global expertise in chocolate, we see enormous potential to grow our US business and expand the category," Cofer said. "The US is the world's largest chocolate market, valued at US$14bn. However, per capita consumption is only about half that of many developed European chocolate markets."
Mondelez's co-branded Oreo and Milka chocolates, already on sale in 20 countries internationally with items such as Milka Oreo Alpine chocolate bars, will target the mainstream segment of the US market. Meanwhile, in the premium segment, the company said it is "dramatically" expanding its Green & Black's range, Mondelez said.
Cofer, meanwhile, used the conference to highlight two areas on which Mondelez will focus as it works to grow its global business - healthy snacks and e-commerce.
Mondelez said it wants to become the "global leader" in "well-being snacks" by 2020. To deliver on this ambition, the Ritz crackers maker is "simplifying and enhancing" the ingredient and nutritional profile of its base business while also introducing "breakthrough innovations". For example, Mondelez stressed its "wholesome thins" platform, which includes Oreo Thins, Chips Ahoy Thins, Ritz Crisp & Thin and Good Thins biscuits, will surpass $300m in sales this year.
On e-commerce, Cofer said Mondelez has targeted sales of $1bn by 2020. The group has built a cross-functional international team to drive "stronger execution" in e-commerce. Cofer highlighted some signs the strategy is paying off, including the relaunch of Belvita biscuits on Amazon, which lifted sales by more than 60%. Through the first six months this year, the company's global e-commerce sales were up more than 30%, while in China, online sales have more than doubled, Cofer noted.

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Mondelez's Revenge: Oreo Chocolate Bars Coming To U.S.

Sep 8, 2016 | Marketing Daily

By Karlene Lukovitz

If you can’t buy ’em, compete head on with ’em.
Having been spurned in its recent attempt to acquire Hershey, Mondelez International, the U.S.’s largest chocolate company, is nevertheless pursuing its goal to become a leading player in the $14-billion U.S. chocolate market.
Its opening bid: Leveraging Oreo, one of the world’s most powerful brands.
In October, Mondelez will begin selling its Milka Oreo chocolate bars -- already sold in more than 20 other countries -- in the U.S. The brand’s full national rollout will be implemented during 2017. The bars pair Oreo cookies with Milka, a chocolate bar popular in Europe.
In addition, Mondelez said it plans to “dramatically” expand its premium Green & Black’s confections offerings. It will add 70% dark chocolate in tablets and sharing and gift packs, and reportedly will add nearly 40 new varieties between now and next year. Mondelez sees Green & Black’s, an organic brand, as well-positioned for growth as consumers push for simple, clean ingredients even in indulgent products.
U.S. consumers’ continuing love of indulgences, even as they strive to live healthier lifestyles — and the market’s relatively low chocolate consumption — are why Mondelez believes that the chocolate category still has ample room for growth here.
U.S. per-capita consumption “is only about half that of many developed European chocolate markets,” said Tim Cofer, chief growth officer, during Mondelez’s presentation at the Barclays Global Consumer Staples Conference held in Boston this week.
Mondelez, whose Cadbury brand is marketed around the globe as well as in the U.S., is the world’s second-largest confectionary company, with roughly $13.4 billion in global sales. But it ranks eighth in the U.S., with about $326 million in sales, according to Euromonitor projections cited by The Chicago Tribune.
Mondelez also recently announced its intention to launch Milka in China, where it has a 3% market share versus Mars’s 40%, Euromonitor reports.
The confections moves are now part of a broad strategy that calls for continued focus on expanding worldwide sales of Mondelez’s “power brands,” and its e-commerce channel, in the face of slowing snack sales growth in critical markets including India and Brazil, as well as China.
In fiscal Q2 ended July 27, Mondelez’s organic net revenue grew only 1.5% — although as a result of cost cutting, its adjusted operating income margin expanded by 210 basis points, to 15.2%.
Since Mondelez’s bid for Hershey fizzled at the end of August, there has been speculation that it might be acquired by Kraft Heinz — which would be ironic, given that Mondelez International was spun off from Kraft in 2012 — or by another giant such as PepsiCo.
Alternately, analysts have speculated that Mondelez may try to acquire another confectioner that would help it expand its U.S. footprint quickly, such as Perfetti Van Melle or Ferrero.

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Mondelez Expands Into U.S. Chocolate Market With Oreo-Branded Candy Bars

Sep 8, 2016 | Vending Market Watch

Mondelez International is expanding in the U.S. chocolate market. The company will roll out Oreo-branded candy bars nationally in 2017, reports Bloomberg. The candy bars will be made with Milka-branded chocolate and are currently distributed in about 20 countries.
Mondelez International is the second-largest seller of chocolate globally, however, its U.S. candy business remains small, the source reports.
This move comes after the company abandoned a bid to acquire Hershey Co. last month.

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Local Coverage

Beaver County firm gets state loan

Sep 8, 2016 | Pittsburg Post Gazette

Oreo chocolate bars key to Mondelez’s U.S. plan
Moving on from Hershey’s rejection of its recent overtures, Oreo-maker Mondelez International announced its plan B to expand into the U.S. chocolate market: Oreo chocolate bars. Mondelez executives announced the move at the Barclays 2016 Consumer Staples Conference. The global snacking and confectionery company, headquartered in Chicago, will begin selling Oreo-branded chocolate bars made with the company’s Milka chocolate; it also will sell a new line of premium chocolate bars under its Green & Black’s brand. Last week, Mondelez announced it was ending its efforts to acquire Hershey, the dominant chocolate-maker in the U.S.

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Candy bars made of Oreos, anyone?

Sep 7, 2016 | Houston Chronicle

Moving on from Hershey's rejection of its recent overtures, Oreo maker Mondelez International announced Wednesday its plan B to expand into the U.S. chocolate market: Oreo chocolate bars.
Calling it a "big splash" into the U.S. chocolate market, Mondelez executives announced the move at the Barclays 2016 Consumer Staples Conference. The global snacking and confectionery company, headquartered in suburban Chicago, will begin selling Oreo-branded chocolate bars made with the company's Milka chocolate; it also will sell a new line of premium chocolate bars under its Green & Black's brand. The new bars will be made in Europe.
Last week, Mondelez ended its efforts to acquire Hershey, the dominant U.S. chocolate-maker.

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