Mondelez International, Inc. (MDLZ - Free Report) (formally known as Kraft Foods Inc), and International Business Machines Corporation (IBM - Free Report) recently announced that they will extend their partnership till September 2015. The partnership will help Mondelez International establish three SAP instances in three years.
The partnership will result in execution of the Catalyst CEEMA Wave 4 project, which is now operating in Eastern & South East Europe, Middle East and Northern Africa region. The project is expected to complete in 2014 and bring 22 countries in the Central and Eastern Europe (CEE) and Middle East and Africa (MEA) region under one enterprise resource planning (ERP) platform along with the EU region.
This multi-year partnership will help Mondelez International improve its efficiency and optimize its resources in the long term.
Following the spin off of Kraft Foods Group Inc. from Kraft Foods, Inc. on October 1, 2012, the erstwhile Kraft Foods, Inc has been renamed Mondelez International and now comprises only its global snacks business. Mondelez International produces and markets packaged food products, including snacks, beverages, cheese, convenient meals and various packaged grocery products. The company has popular brands like Cadbury, Jacobs, LU, Milka, Nabisco, Oreo, Tang and Trident.
Mondelez International intends to expand its strong presence in the fast growing snacks business, particularly in emerging markets. The company intends to focus on increasing its revenue and earnings, optimizing costs and improving its margin through better volume and product mix. The partnership with IBM will help the company achieve its targets.
We currently have a Neutral recommendation on Mondelez International, Inc. The stock carries a Zacks #3 Rank (a short-term ‘Hold’ rating).