The Rising Influence of Rising Affluence

[DewDiligence]

MDLZ soars 8% on partial sale of coffee business and more cost-cutting:

http://online.wsj.com/news/articles/SB10001424052702304655304579547440661257808

Mondelez International Inc. plans to combine its coffee business with D.E Master Blenders 1753 B.V. of Europe to create a more formidable rival to Nestlé SA in the battle for the world's bubbling coffee market. Under the deal announced Wednesday, Mondelez will hand over its coffee brands, including Gevalia and Jacobs, in exchange for $5 billion in cash and a 49% stake in the new company, to be called Jacobs Douwe Egberts.

… Master Blenders is owned by investment group Joh. A. Benckiser, which bought it last year for nearly $10 billion after the coffee company was spun off from Sara Lee Corp. in 2012.

…The deal is part of a broader restructuring for Mondelez, unveiled on Wednesday and designed to cut costs and focus its business on snacks. Mondelez said it plans to spend about $3.5 billion by 2018 to cover severance payments and other charges in an effort to trim $1.5 billion from its annual budget…. Mondelez already has closed, sold or downsized about 30 plants, reducing head count by 3,000 plus another 1,000 contractors in 2013, the company said. It has several other projects still in the works.

MDLZ, which was spun off from Kraft in Oct 2012, hit an all-time high today.

--
MDLZ’s own PRs today:
http://www.sec.gov/Archives/edgar/data/1103982/000119312514186128/d719556dex991.htm (1Q14 results and restructuring)
http://www.sec.gov/Archives/edgar/data/1103982/000119312514186113/d722646dex991.htm (partial sale of coffee business)