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Hershey Media Report 9/12/16

    Trade Coverage

  1. Mondelez bringing Milka Oreo bars to the U.S.

    Sep 9, 2016 | Consumer Affairs

    By Truman Lewis

    Spurned in its effort to buy Hershey, candy giant Mondelez will leverage its Oreo brand to drive a wedge into Hershey's share of the U.S. market, bringing its Milka Oreo chocolate bars to these shores. Milka Oreo bars are already sold in more than 20 countries and could be a threat to Hershey bars, which take a big bite out of the $14 billion U.S. chocolate market each year.
  2. Mondelez and Reynolds Boast Fat Profit Margins

    Sep 9, 2016 | Guru Focus

    By John Dorfman

    Brief mention of the rejected bid from Mondelez in the context of Mondelez stock. Relevant portion pasted below.
  3. Mondelez says it ended talks to buy Hershey

    Sep 11, 2016 | Consumnes Connectin

    By Zachary Reyes

    Mondelez International, the owner of snack brands like Oreo and Nabisco, said Monday that it was no longer seeking to combine with Hershey after conversations between the two companies fell flat.
  4. Mondelez Counts on Oreo Chocolate Bars for 'Big Splash'

    Sep 9, 2016 | NACSOnline.com

    Brief mention of the rejected bid from Mondelez in a greater article about Mondelez's plans for growth. Relevant portion pasted below.

    5. Local Coverage

  5. Mondelez and Reynolds Boast Fat Profit Margins

    Sep 10, 2016 | The Virginian Pilot

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

    6. Broadcast Coverage

  6. On heels of Hershey rejection, Mondelez coming to America anyway

    Sep 9, 2016 | WGAL News 8 Sesquehanna

    View clip here: http://www.wgal.com/news/on-heels-of-hershey-rejection-mondelez-coming-to-america-anyway/41577778

    7. Full Text of Stories Below

    Trade Coverage

  1. Mondelez bringing Milka Oreo bars to the U.S.

    Sep 9, 2016 | Consumer Affairs

    By Truman Lewis

    Spurned in its effort to buy Hershey, candy giant Mondelez will leverage its Oreo brand to drive a wedge into Hershey's share of the U.S. market, bringing its Milka Oreo chocolate bars to these shores.

    Milka Oreo bars are already sold in more than 20 countries and could be a threat to Hershey bars, which take a big bite out of the $14 billion U.S. chocolate market each year.

    Mondelez says it will also expand its premium Green & Black's confections, which feature 70% dark chocolate in tablets and gift packs. It's an organic brand that is expected to appeal to consumers looking for "natural" snacks without giving up the feeling of indulgence that chocolate represents.

    Speaking of indulgence, while Americans routinely beat themselves up over their fast-food habits, the U.S. actually trails most of Europe in its per capita chocolate consumption by 50% or more. Abandoned Hershey pursuit

    Mondelez, the world's second largest confectionary company, officially abandoned its pursuit of Hershey Aug. 29. 

    "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," said Chairman and CEO Irene Rosenfeld said at the time.

    "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."

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  2. Mondelez and Reynolds Boast Fat Profit Margins

    Sep 9, 2016 | Guru Focus

    By John Dorfman

    Mondelez International Inc. (NASDAQ:MDLZ), formerly known as Kraft Foods, spun off many of Kraft’s operations in 2012. What remains is a powerhouse in candy, snack foods and beverages. Brands include Nabisco, Cadbury and Oreo. Sales run about $26 billion a year.

    Since the spinoff, Mondelez has been highly profitable. Its net margin was about 28% in the past four quarters. The company failed it its recent efforts to acquire Hershey Co., which would have been quite a coup. But even without Hershey, it looks to me like a company likely to show continued success.

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  3. Mondelez says it ended talks to buy Hershey

    Sep 11, 2016 | Consumnes Connectin

    By Zachary Reyes

    Mondelez International, the owner of snack brands like Oreo and Nabisco, said Monday that it was no longer seeking to combine with Hershey after conversations between the two companies fell flat.

    DEAL'S OFF: Hershey fell $12.42, or 11 percent, to $99.25 after snack food company Mondelez International said it was walking away from its proposal to buyHershey for roughly $25 billion.

    Hershey did not respond to a request for comment.

    Monday's news had a late impact on USA trading, as Hershey fell 11.2% in NY, after rising 16% since reports of the first offer from Mondelez.

    The two companies had discussed a possible joining of forces for months but Hersheyrejected a takeover bid worth $107 per stock share in June.

    Abandoning the $23 billion Hershey bid should ultimately refocus the Deerfield, IL-based snack company's investors on its "compelling category footprint, peer-leading margin expansion and strategic potential as a standalone company", the firm noted.

    In late July, the state Office of Attorney General settled the investigation with an agreement that will force five members off the charity's board by late 2017. Mondelez'sshares, on the other hand, rose 3% as investors seemed happy with the development.

    The deal was seen as complementary in part because Mondelez gets most of its revenue from overseas, while Hershey gets most of its revenue from North America.

    Last month, Hershey's most recent earnings statement revealed that the company had recorded its first quarterly sales increase in a year, and Hershey declared quarterly dividends.

    At the time, the Hershey board insisted the offer did not warrant further discussions withMondelez.

    Rosenfeld had also approached Hershey Chief Executive John Bilbrey again last week, and indicated that Mondelez would be willing to offer up to US$115 per share forHershey.

    The attorney general accused the trust of misconduct for overpaying its directors.

    In her statement, Rosenfeld reiterated the appeal of Hershey to Mondelez.

    Hershey confirmed to CNNMoney the company has been informed that "Mondelez is no longer pursuing a combination".

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  4. Mondelez Counts on Oreo Chocolate Bars for 'Big Splash'

    Sep 9, 2016 | NACSOnline.com

     Mondelez International isn’t letting a little thing like Hershey’s rejection of its takeover bid slow it down. The snack maker announced its “big splash” plan this week to enlarge its presence in the U.S. chocolate market with its Oreo chocolate bars, the Chicago Tribune reports.

    Mondelez will start selling Oreo chocolate bars made with its Milka chocolate later this year in a limited amount before a national launch in 2017. At the same time, the company will also debut a new line of premium chocolate bars under Green & Black’s. “We have a very small presence in the U.S. [chocolate market], so entering this category represents a significant white space opportunity for us,” said Tim Cofer, chief growth officer for Mondelez.

    The Oreo bars will have several varieties, including one with “bits of Oreo cookie mixed with crème enrobed in [Milka] chocolate,” said Michael Mitchell, a company spokesman. Another bar will have an Oreo wafer in the center with a crème top and bottom. Meanwhile, 17 Green & Black’s varieties will be available by the close of 2016, with another 20 bars hitting shelves ahead of Valentine’s Day 2017.

    Cofer estimates the overall U.S. chocolate channel to be around $14 billion. Mondelez is banking that pairing Oreos with its Milka chocolate will help spur U.S. sales.

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    5. Local Coverage

  5. Mondelez and Reynolds Boast Fat Profit Margins

    Sep 10, 2016 | The Virginian Pilot

    Mondelez International Inc. (MDLZ), formerly known as Kraft Foods, spun off many of Kraft’s operations in 2012. What remains is a powerhouse in candy, snack foods and beverages. Brands include Nabisco, Cadbury and Oreo. Sales run about $26 billion a year.

    Since the spinoff, Mondelez has been highly profitable. Its net margin was about 28 percent in the past four quarters. The company failed in its recent efforts to acquire Hershey Co., which would have been quite a coup. But even without Hershey, it looks to me like a company likely to show continued success.

    Return to headline | Return to top

    6. Broadcast Coverage

  6. On heels of Hershey rejection, Mondelez coming to America anyway

    Sep 9, 2016 | WGAL News 8 Sesquehanna

    View clip here: http://www.wgal.com/news/on-heels-of-hershey-rejection-mondelez-coming-to-america-anyway/41577778

    Rough transcript: If you cant buy the competition, beat the competition. If you can't buy them, beat them. As we previously reported, Mondelez International, the world's second largest candy maker, made a 23 billion dollar offer to buy Hershey, the fifth largest candy maker in the world. Mondelez offered to rename the company Hershey and even move its headquarters to Hershey, Pennsylvania, but stockholders turned that bid down. Now Mondelez says its coming to American anyway. The company says its making plans to distribute its milka oreo chocolate bars which are very popular in Europe. It's also going to be offering its green products which contain no artificial colors, flavors, or preservatives. 

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    7. Full Text of Stories Below

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