Replies to post #5862 on The Rising Influence of Rising Affluence

[DewDiligence]

MDLZ can grow in China via bolt-on acquisitions that are similar in scope to the HNZ deal for Foodstar (#msg-51552987). By applying its big-company skills in marketing, procurement, and information technology, HNZ has increased Foodstar’s sales and profits substantially in only two years. I see no reason why MDLZ cannot use the same approach.

[DewDiligence]

China’s coffee market is embryonic:

http://www.bloomberg.com/news/2012-10-16/nestle-to-battle-starbucks-over-chinese-portioned-coffee-market.html

With Chinese consumers drinking only three cups of coffee per capita each year, compared with 604 for the French, the companies are wagering that there’s latent demand in cities such as Shanghai, where rising wealth is whetting appetites for western luxuries. Mondelez International Inc., (MDLZ) the snacks and coffee business spun off from Kraft Foods Inc., is also considering introducing its Tassimo coffee maker in China.