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Mondelez's (MDLZ) Gourmet Food Buyout to Aid Snacks Platform
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Mondelez International, Inc. (MDLZ - Free Report) is always keen on expanding its business through acquisitions. Progressing along these lines, the company unveiled that it has signed an agreement to acquire a renowned Australia-based food company — Gourmet Food Holdings Pty Ltd. Management expects to conclude the deal in April 2021.
Notably, Gourmet Food holds a firm position in premium crackers and biscuits segments across Australia and New Zealand (ANZ) with impressive brands like Olina’s Bakehouse, OB finest and Crispbic. Moreover, the deal will include Gourmet Food’s pre-packaged seafood business thatincludes the Ocean Blue brand.Well, Gourmet Food’s on-trend innovations like focus on health and well-being offerings have been driving growth. Meanwhile, Mondelez’s robust manufacturing, research and development capabilities will sustain Gourmet Food’s growth trajectory.
Accretive Acquisitions: A Key Driver
Mondelez has long been focused on strengthening its business via prudent partnerships. On Jan 4, 2021, the company acquired Hu Master Holdings, the parent company of Hu Products. Notably, the acquisition of Hu will provide further growth opportunities in chocolate and cross-category potential in crackers for Mondelez. Moreover, the deal will provide the company important opportunities to grow distribution network that includes e-commerce as well as premium conventional retail channels.
In April 2020, the company acquired majority interest in Give & Go, which is a pioneer in fully-finished sweet baked goods. Give & Go’s fast-growing in-store bakery channel is likely to help the company further expand its snacking business. In July 2019, it acquired minority stakes in Perfect Snacks—a leader in the fast-growing refrigerated nutrition bars space. Perfect Snacks offers original refrigerated protein bars as well as organic, non-GMO, nut-butter-based protein bars and bites.
Further, some notable buyouts of the company include acquisition of Tate’s Bake Shop (June 2018), LU biscuit business in 2007 and Cadbury in 2010. These buyouts significantly expanded Mondelez’s routes-to-market around the globe, especially in emerging markets. The company’s focus on undertaking acquisitions to gain scale in its categories and distribution capabilities bode well.
All said, the addition of Gourmet Food to Mondelez’s solid biscuit brands portfolio with Oreo and belVita brands will accelerate its growth in the snacking space, with improved presence in Australia and New Zealand. Notably, shares of this Zacks Rank #3 (Hold) company have increased 6.3% over a year compared with the industry’s 25.7% growth.
Looking for Better-Ranked Food Stocks? Don’t Miss These.
Medifast, Inc. (MED - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 17.4%, on average.
The J. M. Smucker Company (SJM - Free Report) , currently carrying a Zacks Rank #2, has a long-term earnings growth rate of 1.7%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Mondelez's (MDLZ) Gourmet Food Buyout to Aid Snacks Platform
Mondelez International, Inc. (MDLZ - Free Report) is always keen on expanding its business through acquisitions. Progressing along these lines, the company unveiled that it has signed an agreement to acquire a renowned Australia-based food company — Gourmet Food Holdings Pty Ltd. Management expects to conclude the deal in April 2021.
Notably, Gourmet Food holds a firm position in premium crackers and biscuits segments across Australia and New Zealand (ANZ) with impressive brands like Olina’s Bakehouse, OB finest and Crispbic. Moreover, the deal will include Gourmet Food’s pre-packaged seafood business thatincludes the Ocean Blue brand.Well, Gourmet Food’s on-trend innovations like focus on health and well-being offerings have been driving growth. Meanwhile, Mondelez’s robust manufacturing, research and development capabilities will sustain Gourmet Food’s growth trajectory.
Accretive Acquisitions: A Key Driver
Mondelez has long been focused on strengthening its business via prudent partnerships. On Jan 4, 2021, the company acquired Hu Master Holdings, the parent company of Hu Products. Notably, the acquisition of Hu will provide further growth opportunities in chocolate and cross-category potential in crackers for Mondelez. Moreover, the deal will provide the company important opportunities to grow distribution network that includes e-commerce as well as premium conventional retail channels.
In April 2020, the company acquired majority interest in Give & Go, which is a pioneer in fully-finished sweet baked goods. Give & Go’s fast-growing in-store bakery channel is likely to help the company further expand its snacking business. In July 2019, it acquired minority stakes in Perfect Snacks—a leader in the fast-growing refrigerated nutrition bars space. Perfect Snacks offers original refrigerated protein bars as well as organic, non-GMO, nut-butter-based protein bars and bites.
Further, some notable buyouts of the company include acquisition of Tate’s Bake Shop (June 2018), LU biscuit business in 2007 and Cadbury in 2010. These buyouts significantly expanded Mondelez’s routes-to-market around the globe, especially in emerging markets. The company’s focus on undertaking acquisitions to gain scale in its categories and distribution capabilities bode well.
All said, the addition of Gourmet Food to Mondelez’s solid biscuit brands portfolio with Oreo and belVita brands will accelerate its growth in the snacking space, with improved presence in Australia and New Zealand. Notably, shares of this Zacks Rank #3 (Hold) company have increased 6.3% over a year compared with the industry’s 25.7% growth.
Looking for Better-Ranked Food Stocks? Don’t Miss These.
The Hain Celestial (HAIN - Free Report) , currently carrying a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 26.7%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medifast, Inc. (MED - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 17.4%, on average.
The J. M. Smucker Company (SJM - Free Report) , currently carrying a Zacks Rank #2, has a long-term earnings growth rate of 1.7%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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