With the financial results for 2016 coming in, Mondelez International’s latest numbers were a sign, some suggested, US companies could be too focused on growing margins. Elsewhere, Glanbia, the Irish dairy and sports nutrition group announced two acquisitions, Kellogg set out plans to change the way it distributes snacks in the US and we interviewed the CEO of French own-label supplier Agromousquetaires.
“While we don’t diminish the importance of the 2018 margin target to Mondelez’s investment case, we do wonder if it could limit Mondelez’s flexibility to take steps required to not only capture market share, but also lift overall category growth rates. We do not see this as a Mondelez-specific issue, but rather a dynamic that many in the food industry are likely to grapple with in the coming quarters” – Barclays analyst Andrew Lazar, reflecting on Mondelez International’s fourth-quarter and annual results, mulls whether the snack giant’s margin targets could be hampering its ability to grow sales.
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“Both businesses have a strong strategic fit, with Glanbia Performance Nutrition extending its reach to new consumers and channels” – Siobhan Talbot, the MD of Glanbia, outlines why the Ireland dairy-to-sports nutrition business has snapped up Grass Advantage in the US and Body & Fit in the Netherlands.
“If these changes proceed, they will create a business which is fit for future growth” – a spokesperson for Bernard Matthews, now under the ownership of the CEO of 2 Sisters Food Group, explains why the UK turkey processor is looking to cut jobs.
“We want to work with the number one European market for private-label products and that is the UK. We have the know-how, the capacity and we can do it regardless of Brexit” – Agromousquetaires CEO Christophe Bonno is confident of the French own-label group’s ability to crack the UK market – and in the market’s prospects – despite the country leaving the EU.
“This will keep us firmly on our path to our 2018 operating profit margin expansion target and lead to better top-line performance” – Kellogg chairman and CEO John Bryant explains why the US food group is to change the way it delivers snacks in the US.
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