Mondelez International, Inc. (MDLZ) recently announced its plans to enter the Australian and Dutch coffee markets with the launch of Carte Noire and Velours Noir branded coffee products in the countries.
In Netherlands, the Deerfield, Ill.-based food and snacks company will launch a range of Velours Noir-branded roast & ground coffee, wholebeans and pods. In addition, Mondelez will also launch Velours Noir branded single-serve espresso capsules which are compatible with Nestlé’s coffee machine, Nespresso. All these products will be launched in partnership with local retailer, Albert Heijn, and are expected to be available early next week.
In Australia, the company will launch Carte Noire-branded wholebean instant and premium freeze-dried coffee products.
Mondelez also announced its plans to launch Carte Noire-branded Nespresso-compatible espresso capsules in Spain in mid-October. The company already sells these espresso capsules under Jacobs and Carte Noire coffee brands in Austria, France, Germany and Switzerland.
These expansion efforts are in line with Mondelez’s plans to improve revenues and profits in Europe. Moreover, these product launches underlie management’s plans to gain share in the global coffee market which is growing at 10% per annum.
Mondelez emerged from a split of Kraft Foods, Inc last year when the latter was de-merged into two companies — Mondelez and Kraft Foods Group (KRFT). Kraft Foods Group consists of the North American grocery business of the old Kraft Foods while Mondelez handles the latter’s snack business, which includes brands like Cadbury and Toblerone chocolates. Currently, Mondelez carries a Zacks Rank #3 (Hold) as it is in a transitional stage and is likely to take some time to stabilize.
Other Stocks to Consider
Other stocks in the food industry that are currently performing well and have a bright outlook include Pinnacle Foods Inc. (PF) and Green Mountain Coffee Roasters, Inc (GMCR). Both the companies carry a Zacks Rank #1 (Strong Buy).