Mondelez International (MDLZ 0.79%) is fresh off its recent corporate breakup. It boasts one of the best snack brand portfolios in the industry and massive global growth opportunities. But Mondelez has doubled down by putting all its chips on emerging nations' tables, which is one of the factors that pose a risk to the company. I've created a premium report on Mondelez to help investors examine the company's future.
Below is an excerpt from the report that lists the three biggest risks facing Mondelez. It's just a taste of one section, but we hope you find it useful.
1. Potential challenges in developing markets: Mondelez is hinging its future success on doubling down in emerging markets. Being so heavily dependent on these markets introduces extra risks to the company, including currency fluctuations and exposure to political unrest in less-stable countries around the world.
2. Weakness in category growth: Food and beverage companies with solidly positioned brand portfolios that enable price increases over time, while also maintaining growth in volumes sold, will emerge victorious. Failure to develop and expand its brand portfolio while creating demand in growing categories is a risk to Mondelez.
3. Challenges in acquisitions: Mondelez International's CEO, Irene Rosenfeld, has expressed interest in pursuing acquisitions in developing markets. One example is the recent acquisition of Vitasnella, Danone's Italian snack business. Failure to successfully integrate businesses or overpaying for them is a risk to the company.
