Mondelez International, Inc. (MDLZ): Business Model Canvas [10-2024 Updated]

Explore the dynamic business model of Mondelez International, Inc. (MDLZ), a global leader in the snack food industry. This blog post delves into the key components of their Business Model Canvas, highlighting their essential partnerships, innovative activities, and diverse customer segments. Discover how Mondelez combines iconic brands with a commitment to sustainability, creating value for consumers and stakeholders alike. Read on to uncover the strategies that drive their success in a competitive market.

Mondelez International, Inc. (MDLZ) - Business Model: Key Partnerships

Suppliers of raw materials (cocoa, sugar, dairy)

Mondelez International relies on a diverse network of suppliers for essential raw materials. Key suppliers include:

• Cocoa suppliers from West Africa, primarily Côte d'Ivoire and Ghana.
• Sugar suppliers from Brazil and Australia.
• Dairy suppliers across the United States and Europe.

In Q3 2024, Mondelez reported an increase in raw material costs, with cocoa prices rising by approximately 20% year-over-year, impacting overall production costs.

Distributors and retailers worldwide

Mondelez has established partnerships with major distributors and retailers globally to enhance its market reach. Notable partnerships include:

• Walmart: A significant retail partner in North America.
• Carrefour: Key distribution partner in Europe.
• 7-Eleven: Collaborations for snack product placement in convenience stores.

In the first nine months of 2024, net revenues from North America amounted to $8.1 billion, with a significant portion derived from these retail partnerships.

Strategic alliances with local brands

Mondelez engages in strategic alliances with local brands to penetrate new markets effectively. Examples include:

• Partnership with Bisk Farm in India to expand its biscuit portfolio.
• Collaboration with local chocolate manufacturers in emerging markets to enhance product offerings.

These alliances have contributed to Mondelez's organic net revenue growth of 4.0% in the first nine months of 2024.

Joint ventures in emerging markets

Mondelez has entered several joint ventures to capitalize on growth opportunities in emerging markets:

• Joint venture with a local snack producer in China, enhancing market penetration.
• Collaboration with local dairy farms in Latin America to bolster its dairy product line.

In Q3 2024, Mondelez's revenues from emerging markets reached $3.5 billion, reflecting the success of these joint ventures.

Third-party logistics providers

To optimize its supply chain and distribution efficiency, Mondelez partners with various third-party logistics (3PL) providers. Key partnerships include:

• DHL: For global shipping and logistics management.
• XPO Logistics: For warehousing and distribution services in North America.

These logistics partnerships have helped reduce operational costs, with Mondelez reporting a 15% decrease in logistics expenses year-over-year in Q3 2024.

Partnership Type	Key Partners	Impact on Revenue
Raw Material Suppliers	Cocoa, Sugar, Dairy	Increased production costs due to raw material price fluctuations
Distributors/Retailers	Walmart, Carrefour, 7-Eleven	$8.1 billion net revenues from North America
Strategic Alliances	Bisk Farm, Local Chocolate Manufacturers	4.0% organic net revenue growth
Joint Ventures	Local Snack Producers, Dairy Farms	$3.5 billion revenues from emerging markets
Logistics Providers	DHL, XPO Logistics	15% reduction in logistics expenses

Mondelez International, Inc. (MDLZ) - Business Model: Key Activities

Manufacturing snack food products

Mondelez International operates numerous manufacturing facilities worldwide, producing a wide range of snack food products. As of 2024, the company has reported net revenues of $26.8 billion for the first nine months, with manufacturing costs being a significant portion of this figure. The latest financial results indicate a segment operating income increase of 20.4%, largely attributed to improved manufacturing efficiencies and reduced costs.

Marketing and brand management

The company invests heavily in marketing and brand management, with advertising and consumer promotion costs amounting to approximately $2.1 billion in 2024. Mondelez's marketing strategies have been successful, with organic net revenue growth of 5.4% in Q3 2024, driven by increased brand recognition and consumer loyalty.

Research and development for product innovation

Mondelez's commitment to research and development (R&D) is evident in its continuous product innovation. The company allocated around $500 million to R&D in 2024, focusing on developing new flavors and healthier snack options. This investment is crucial for maintaining competitive advantages in the snack food sector.

Supply chain management

Effective supply chain management is a cornerstone of Mondelez's operations, enabling the company to maintain product availability and manage costs. The company reported a 5.1% increase in net pricing due to input cost-driven pricing actions, indicating a robust supply chain strategy. Additionally, the company has implemented an ERP Systems Implementation program to streamline operations and enhance efficiency.

Sales and distribution across regions

Mondelez's sales and distribution network spans global markets, with net revenues from emerging markets reaching $10.5 billion and developed markets at $16.3 billion for the nine months ended September 30, 2024. The sales strategy has been effective, as evidenced by a 4.0% organic revenue growth, which highlights the company's ability to adapt to varying consumer demands across regions.

Key Activity	Details	Financial Impact (2024)
Manufacturing	Production of snack food products across global facilities	Net revenues: $26.8 billion; Operating income increase: 20.4%
Marketing	Investment in advertising and brand management	Advertising costs: $2.1 billion; Organic net revenue growth: 5.4%
R&D	Focus on product innovation and development	R&D investment: $500 million
Supply Chain	Management of logistics and supply chain efficiency	Net pricing increase: 5.1%
Sales Distribution	Global sales strategies and regional market adaptation	Emerging markets revenues: $10.5 billion; Developed markets revenues: $16.3 billion

Mondelez International, Inc. (MDLZ) - Business Model: Key Resources

Strong portfolio of iconic brands (Oreo, Cadbury)

Mondelez International boasts a robust portfolio of over 100 brands, including Oreo and Cadbury, which are among the top-selling snack brands globally. As of 2024, the company's net revenues reached approximately $26.8 billion for the first nine months, reflecting a growth in organic net revenue of 4.0% year-over-year.

Global manufacturing facilities

Mondelez operates more than 100 manufacturing facilities across the globe, ensuring efficient production and distribution capabilities. The company has invested significantly in modernizing these facilities, with a focus on sustainability and efficiency, which has led to a 22.5% increase in segment operating income for the European region in Q3 2024.

Experienced workforce

Mondelez employs approximately 80,000 employees worldwide, bringing a wealth of experience and expertise to the company. The workforce has been pivotal in driving operational efficiency and innovation, contributing to an increase of $296 million (20.4%) in segment operating income for the first nine months of 2024.

Distribution network

The company maintains a comprehensive distribution network that spans more than 150 countries. This extensive reach allows Mondelez to effectively manage logistics and supply chain operations, resulting in a 3.1% increase in developed market net revenues for Q3 2024.

Intellectual property (trademarks, patents)

Mondelez's intellectual property portfolio includes numerous trademarks and patents related to its products and processes. The company has made significant investments in research and development, evidenced by a $1.5 billion allocation for innovation and marketing in 2024.

Key Resource	Details	Financial Impact
Iconic Brands	Over 100 brands including Oreo and Cadbury	Net revenues of $26.8 billion (2024)
Manufacturing Facilities	More than 100 global facilities	22.5% increase in segment operating income (Q3 2024)
Experienced Workforce	Approximately 80,000 employees	$296 million increase in operating income (9 months 2024)
Distribution Network	Presence in over 150 countries	3.1% increase in developed market revenues (Q3 2024)
Intellectual Property	Extensive trademarks and patents	$1.5 billion investment in R&D (2024)

Mondelez International, Inc. (MDLZ) - Business Model: Value Propositions

High-quality, diverse snack products

Mondelez International offers a broad portfolio of snack products, including well-known brands such as Oreo, Cadbury, and Toblerone. In the third quarter of 2024, net revenues increased by $237 million (7.7%), driven by higher net pricing and favorable volume/mix. The company reported net revenues of $9.2 billion for Q3 2024, up from $9.0 billion in Q3 2023.

Global presence with local relevance

Mondelez operates in over 150 countries, allowing it to tailor its products to meet local tastes and preferences. For the nine months ended September 30, 2024, the company reported net revenues of $26.8 billion, reflecting a 0.5% increase compared to the same period in 2023.

Commitment to sustainability and responsible sourcing

Mondelez has made significant commitments to sustainability, including sourcing cocoa from Rainforest Alliance Certified farms. The company aims to make 100% of its packaging recyclable by 2025. In 2024, Mondelez reported a 19.1% increase in Adjusted EPS, reflecting its focus on long-term sustainable growth.

Innovation in flavors and packaging

The company invests heavily in product innovation, which includes introducing new flavors and eco-friendly packaging solutions. In Q3 2024, Mondelez's Organic Net Revenue grew by 5.4%, indicating strong consumer demand for innovative products.

Strong customer loyalty and brand recognition

Mondelez's brands consistently rank among the top in consumer surveys for quality and preference. The company's marketing strategies and product quality have fostered strong customer loyalty. In the first nine months of 2024, diluted EPS attributable to Mondelez International was $2.12, down 27.4% from $2.92 in the previous year, highlighting the brand's resilience despite challenges.

Key Metrics	Q3 2024	Q3 2023	Change (%)
Net Revenues	$9.2 billion	$9.0 billion	+2.2%
Adjusted EPS	$0.99	$0.77	+28.6%
Operating Income	$1.15 billion	$1.38 billion	-16.4%
Organic Net Revenue Growth	5.4%	4.0%	+35%

Mondelez International, Inc. (MDLZ) - Business Model: Customer Relationships

Direct engagement through digital marketing

Mondelez International utilizes various digital marketing strategies to engage directly with consumers. In 2024, the company reported a significant increase in its digital ad spending, with a budget allocation of approximately $800 million, representing a 10% increase from the previous year. This investment aims to enhance brand visibility and consumer engagement through personalized content and targeted advertising across platforms such as social media and search engines.

Loyalty programs and promotions

Mondelez has implemented several loyalty programs to retain customers and encourage repeat purchases. The 'My Oreo Creation' program, which allows consumers to create their own Oreo flavors, has seen participation from over 1 million users since its launch in 2022. The company also reported a 15% increase in sales during promotional periods, such as 'Back to School' campaigns, where bundling strategies were employed to boost product visibility and sales.

Program Name	Launch Year	Participants (2024)	Sales Increase During Promotions (%)
My Oreo Creation	2022	1,000,000+	15%
Cadbury Dairy Milk Loyalty Program	2021	500,000+	12%

Customer feedback mechanisms

To enhance customer relationships, Mondelez actively seeks feedback through various channels, including social media, surveys, and product reviews. In 2024, the company received over 250,000 customer feedback submissions, leading to a 20% improvement in product development cycles. Additionally, Mondelez has dedicated teams analyzing consumer sentiment, which has informed product reformulations and new product launches.

Community outreach and corporate social responsibility initiatives

Mondelez is committed to corporate social responsibility, with initiatives focusing on sustainability and community engagement. In 2024, the company invested approximately $50 million in community programs aimed at nutrition education and sustainable agriculture practices. Their 'Cocoa Life' program, which aims to support cocoa farmers, has positively impacted over 100,000 farmers since its inception, contributing to improved livelihoods and sustainable farming practices.

Partnerships with retailers to enhance customer experience

Mondelez has established strategic partnerships with major retailers to improve customer experiences and streamline product availability. In 2024, collaborations with retailers such as Walmart and Target have led to exclusive product launches and enhanced in-store promotions, resulting in a reported 18% increase in foot traffic in stores carrying Mondelez products. The company also leverages data analytics from retail partners to optimize inventory management and align marketing strategies with consumer purchasing behaviors.

Retail Partner	Initiative	Impact on Sales (%)	Year
Walmart	Exclusive product launches	18%	2024
Target	In-store promotions	15%	2024

Mondelez International, Inc. (MDLZ) - Business Model: Channels

Supermarkets and hypermarkets

Mondelez International distributes its products through major supermarket and hypermarket chains, which account for a significant portion of its sales. For the three months ended September 30, 2024, net revenues from North America were $2,826 million, reflecting a slight decrease of 0.7% compared to the same period in 2023. This decline was attributed to divestitures and unfavorable currency translation, partially offset by higher net pricing and favorable volume/mix.

Convenience stores

Convenience stores serve as another crucial channel for Mondelez, providing accessibility to consumers seeking snacks and quick meal options. In the first nine months of 2024, the company saw a net revenue increase of 0.5% to $26,837 million, aided by its presence in convenience retailing. The convenience store sector has been vital in maintaining steady demand for Mondelez's snack products amid varying consumer habits.

E-commerce platforms

Mondelez has significantly invested in its e-commerce channel, recognizing the growing trend of online shopping. The company's organic net revenue grew 5.4% to $9.3 billion in the third quarter of 2024, driven by higher net pricing and favorable volume/mix, which includes sales from e-commerce platforms. The strategic focus on digital sales channels reflects Mondelez's adaptability to changing consumer preferences, particularly post-pandemic.

Wholesale distributors

Wholesale distributors play a pivotal role in Mondelez's supply chain, allowing the company to reach smaller retailers not served by direct sales forces. The impact of short-term distributor agreements related to the divestiture of the developed market gum business added $25 million in net revenues for the first nine months of 2024. This highlights the importance of wholesale partnerships in maintaining revenue streams during transitions in product offerings.

Food service providers

Mondelez's products are also distributed through food service providers, including restaurants, cafes, and catering companies. This channel has been essential in expanding brand reach and consumer exposure. For the three months ended September 30, 2024, segment operating income in North America increased by 72.6% to $918 million, reflecting strong performance across various distribution channels, including food service.

Channel	2024 Net Revenues (in millions)	Change (%)
Supermarkets and Hypermarkets	$2,826	(0.7)
Convenience Stores	Included in overall growth	0.5
E-commerce Platforms	Part of $9,324 million Organic Net Revenue	5.4
Wholesale Distributors	Incremental $25 million	—
Food Service Providers	Part of $918 million Operating Income	72.6

Mondelez International, Inc. (MDLZ) - Business Model: Customer Segments

General consumers (families, individuals)

Mondelez International targets general consumers, which include families and individuals, with a diverse range of snack products. In the third quarter of 2024, net revenues from North America amounted to $2.826 billion, showing a slight decrease of 0.7% compared to the previous year. This segment remains pivotal, accounting for a significant portion of Mondelez's overall sales.

Health-conscious snackers

The health-conscious demographic is increasingly important to Mondelez. The company has expanded its product lines to include healthier options, responding to the growing trend of health and wellness among consumers. In 2024, Mondelez reported a 5.4% increase in organic net revenue, reaching $9.3 billion in the third quarter, driven by higher net pricing and favorable volume/mix.

Millennials and younger demographics

Millennials and younger consumers are a key focus for Mondelez, particularly through innovative marketing strategies and product offerings. The company has tailored its marketing campaigns to resonate with this demographic, which increasingly favors convenience and unique snack experiences. In the first nine months of 2024, Mondelez's net revenues reached $26.8 billion, reflecting a 0.5% increase, largely supported by this younger consumer base.

Retail partners (supermarkets, online)

Retail partners, including supermarkets and online retailers, play a crucial role in Mondelez's distribution strategy. In the third quarter of 2024, the company’s segment operating income increased by 22.5% in Europe, attributed to a favorable volume/mix and higher pricing strategies. The collaboration with retail partners is essential for maximizing product visibility and availability.

Food service industry (restaurants, cafes)

The food service industry represents another important customer segment for Mondelez. The company supplies snacks and confectionery products to restaurants and cafes, adapting its offerings to meet the needs of this sector. The AMEA region reported net revenues of $1.851 billion in the third quarter of 2024, an increase of 3.4%, indicating growth in food service demand.

Customer Segment	Key Metrics	Notes
General Consumers	$2.826 billion (Q3 2024)	0.7% decline YoY in North America
Health-conscious Snackers	5.4% organic revenue growth	$9.3 billion in Q3 2024
Millennials and Younger Demographics	$26.8 billion (First 9 months 2024)	0.5% increase YoY
Retail Partners	22.5% increase in Europe segment operating income	Higher pricing strategies
Food Service Industry	$1.851 billion (Q3 2024)	3.4% increase in AMEA

Mondelez International, Inc. (MDLZ) - Business Model: Cost Structure

Raw material procurement costs

For the first nine months of 2024, Mondelez International reported higher raw material costs, primarily driven by increased prices for cocoa, sugar, nuts, and dairy products. The total increase in input costs was approximately $85 million, reflecting the pressure from global commodity prices and inflationary trends.

Manufacturing and operational expenses

Manufacturing costs have seen fluctuations, with total manufacturing costs increasing due to higher raw material expenses. However, productivity improvements offset some of these increases. In the third quarter of 2024, manufacturing costs were reported at $3.5 billion, which was a slight increase from $3.4 billion in the previous year.

Marketing and advertising expenditures

Marketing and advertising expenditures increased by approximately $270 million in the first nine months of 2024, reflecting a heightened focus on brand promotion and consumer engagement. Total marketing expenses for the period were approximately $1.5 billion.

Logistics and distribution costs

Logistics and distribution costs were impacted by global supply chain disruptions and increased freight costs. The total logistics costs for the first nine months of 2024 were approximately $1.2 billion, a rise from $1.1 billion in the same period of the previous year.

Research and development investments

Research and development (R&D) investments for Mondelez International totaled approximately $250 million for the first nine months of 2024. This reflects a commitment to innovation and product development, particularly in expanding healthier snack options.

Cost Category	2024 Amount (in millions)	2023 Amount (in millions)	Change (in millions)
Raw Material Procurement	85	N/A	N/A
Manufacturing Costs	3,500	3,400	100
Marketing and Advertising	1,500	1,230	270
Logistics and Distribution	1,200	1,100	100
Research and Development	250	230	20

Mondelez International, Inc. (MDLZ) - Business Model: Revenue Streams

Sales of snack food products

Mondelez International generates significant revenue through the sales of various snack food products. For the nine months ended September 30, 2024, the company reported total net revenues of $26.8 billion, with a net revenue increase of 1.9% from the previous year. This increase was primarily driven by higher net pricing and favorable volume/mix across multiple product categories.

E-commerce and direct-to-consumer sales

In recent years, Mondelez has expanded its e-commerce presence and direct-to-consumer sales channels. The company reported that e-commerce sales contributed to its organic net revenue growth of 5.4% in the third quarter of 2024, with significant increases in online shopping during the pandemic continuing to influence consumer purchasing behavior.

Licensing agreements for brand partnerships

Mondelez has established various licensing agreements that allow partnerships with other brands, enhancing its revenue streams. For instance, partnerships in markets such as Asia and Europe have enabled Mondelez to expand its product offerings and reach a wider customer base, resulting in additional revenue.

International sales across different regions

International sales have been a vital component of Mondelez's revenue strategy. For the nine months ended September 30, 2024, net revenues from international markets reached approximately $16.3 billion, contributing to a reported growth of 0.9% in the European region alone. The company has seen growth in regions such as AMEA, with revenues of $5.4 billion, reflecting a 0.9% increase compared to the previous year.

Revenue from promotional campaigns and collaborations

Mondelez also earns revenue through promotional campaigns and strategic collaborations. The company utilizes promotional activities to drive sales during peak seasons, which significantly boosts revenues. For example, promotional campaigns in North America resulted in a revenue uptick, contributing to the overall sales increase.

Revenue Source	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	% Change
Sales of Snack Food Products	$9,204	$9,029	1.9%
E-commerce Sales	Included in overall revenue	N/A	N/A
Licensing Agreements	Part of overall revenue	N/A	N/A
International Sales	$16,314	$16,271	0.3%
Promotional Campaigns	Part of overall revenue	N/A	N/A

Article updated on 8 Nov 2024

Resources:

1. Mondelez International, Inc. (MDLZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mondelez International, Inc. (MDLZ)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Mondelez International, Inc. (MDLZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.