With changing consumer preferences, there is a huge demand for new snacking products with unique flavors. There is lot of focus on product innovation as companies strive to be the first ones to come up with interesting flavors. Mondelez International, Inc. (MDLZ) recently introduced a bacon flavored cracker, which drove its price the following day.
The new RITZ Bacon flavored Crackers incorporate the classic taste of RITZ, seasoned with black pepper and the popular flavor of bacon. This cracker can be used with various toppings such as cheese, chicken, pickles and roast beef.
Product innovation plays a huge role in the company’s success. One of the leading global snacks companies, Mondelez regularly refreshes its brand portfolio through product innovation and extension of its brands to new geographies and platforms.
Mondelez manufactures snacks and beverage products. Its product categories include chocolates, biscuits, gum, candy, cheese & grocery products and coffee and powdered beverages. Its portfolio includes nine brands, which generate revenues in excess of $1 billion and have been christened “Power Brands”. These include popular names like Oreo, Nabisco and LU biscuits; Milka, Cadbury Dairy Milk and Cadbury chocolates; Trident gum; Jacobs coffee; and Tang powdered beverage. However, the company has been under pressure of late and has reported disappointing top-line results ever since the separation from Kraft Foods Global, Inc. Weak biscuit sales in China, continued headwinds from coffee pricing and slower global category growth hurt revenues in the second half of 2014.
Mondelez carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the consumer goods sector are Diamond Foods, Inc. (DMND), Inventure Foods, Inc. (SNAK) and J&J Snack Foods Corp. (JJSF), all carrying a Zacks Rank #2 (Buy).