Back to top

Analyst Blog

Mondelez International, Inc. (MDLZ - Analyst Report) recently announced the introduction of a new range of espresso capsules, which will be compatible with Nestle S.A.’s coffee making machine Nespresso. The company will launch these espresso capsules in two of its premium coffee brands of Jacobs and Carte Noire in Austria, France, Germany, and Switzerland in the later half of 2013. In addition the company intends to increase investments in its Tassimo coffee making systems, to make it a billion dollar brand.

Machines like Nespresso and Tassimo brew espresso from coffee capsules which are single-use container of ground coffee and flavorings. The launch of espresso capsules for use in the already popular Nespresso machines will boost sales of Mondelez’s premium coffee brands of Jacobs and Carte Noire. As such, its will help Mondelez International to penetrate further into the promising single serve coffee market.     

As a part of its long term strategy, Mondelez intends to improve margins in Europe and North America by shifting the products mix towards high margin products. Margins on these products are 100- 200 basis points higher than other products. The company further intends to focus on reducing cost and improving savings in order to drive margin expansion in the long term. The introduction of these premium coffee brands espresso capsules comes in line with the company’s long term strategy.

Mondelez International focuses on the global food and snacks business of the erstwhile Kraft Foods. It markets products in fast growing food categories like chocolates, biscuits, gum, candy, coffee and powdered beverages, which include several popular brands like Tang, Oreo, Cadbury. On Oct 1, the erstwhile Kraft Foods spun off its North American grocery business into a separate independent company, Kraft Foods Group, Inc. (KRFT - Analyst Report)

Mondelez International carries a Zacks Rank #3 (Hold).

Other food companies that have been doing well consistently are Flower Foods Inc. (FLO - Snapshot Report) and Omega Protein Corp both carrying a Zacks Rank #1 (Strong Buy).


Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%