Is Mondelez a Good Investment?

PHOTO CREDIT: Mondelez

OVERVIEW

Mondelez International Incorporation is a company based in the United States. The company process, manufactures, and sells food and confectionary products around the world. The company operates under the Cadbury, Oreo, Trident, belVita, and many other brands. The company was founded in 2000 after Kraft Heinz spun off its food business.

Why You Should?

1. Mondelez is a great reopening play in an investor’s portfolio. The company saw a drop in demand for some of its commercial products as the pandemic shut down many restaurants and other large venues. However, once the pandemic is over, the company will see strong growth across all of its product lines once again.
2. As the pandemic took hold across the nation and the world, consumers around the world stocked up on comfort foods like Oreo cookies and Cadbury chocolate. The company saw strong growth across these products throughout the pandemic as consumers adapted their snacking habits. This helped the company navigate the pandemic and also benefited investors.
3. Mondelez has an extremely strong brand recognition across the markets that it operates. For example, Oreos are the most popular cookie brand in the world and Cadbury Chocolate is sharing several accolades in the chocolate industry. This strong brand recognition has helped the company grow its business and gain new customers.
4. Mondelez is a safe investment option in an investor’s portfolio. Despite the economic conditions, consumers around the world will continue to spend money on food products. This will help the company navigate tough economic times and will also benefit investors in the company.
5. The company has started to further expand its presence in China, an important market for the company to have a strong presence. For example, the company recently partnered with an online grocery delivery service, MissFresh, to launch their new sugar-free Oreos in the nation. This growth will benefit the company and its investors.

Why You Should Not?

1. The company faces tough competition in the food and confectionary industry. Some of these competitors include Hershey’s, Campbell Soup Company, PepsiCo, General Mills, and many others. This competition might hurt the company and its investors in the future.
2. The company faces tough supply chain issues in the food industry. From increasing costs of raw materials, worker shortages, and shipping delays, the company saw some weaknesses in its most recent quarterly results due to these supply chain issues and higher costs. This has also hurt investors in the company.

MY OPINION

I think that Mondelez is a good long-term investment due to its position as a good reopening play, positive impacts from the pandemic, good brand recognition, its position as. safe investment option, as well as continued expansion into China. However, tough competition and negative impacts from supply chain issues might hurt the company and its investors in the future.