Mondelez-Snacking Made Right

Mondelez International is an American multinational confectionary, food ,holding and beverage and snack food company that was founded on December 10, 1923 by Thomas H. McInnerney out of Chicago, Illinois.It is a conglomerate consisting of many traditional chocolate brands such as Cadbury and Nabisco. Mondelez originally a part of the Kraft foods only became a separate entity on October 1,2012.

Mondelez currently trades at around 58-62$ with a market cap of about 85 Billion USD.The stock has seen a bullish sentiment for the past 18-25 days spurred by the positive results for the quarter.The market correction is affecting the company but it seems to hold generally well in comparison to its competitors. Mondelez owns Cadbury which almost enjoys monopolistic competition all around the world in the confectionery industry.

Analysts predict a slight increase in EPS from 2.69 to 2.9 for the next fiscal year and a sales growth of about 3.90%.Mondelez International has a high predicted stock forecast of 75$ and a low of 66$ with median target of 71$ which is a 17.32% increase from its current stock price. It is a stable investment and by no means is a growth stock.

Mondelez is heavily investing in sustainable procurement of cocoa and plans to become the first confectionary to be carbon neutral.They are also investing funds into reforestation of previously utilised reserve lands so that they can maximise their utility and cultivate in an eco-friendly manner.All these initiatives are being readily implemented as they been surrounded in controversy in the past on the matter of deforestation by the worldwide NGO Mighty Earth.They were found guilty of clearing over 1.7L Acres of forest reserves to procure cocoa for production in 2018.They were also also accused of stock market manipulation when they supposedly bought 90 million $ worth of wheat futures pushing the price up and earning the company 6.3 million $.As a result of all of these actions, their ESG Risk Ratings have dropped to 3 which is terribly low from a qualitative point of view.The company was also charged for child slavery in a class action law suit by inhabitants from the Ivory Coast. Mondelez has been involved in many accusations in the past and the new management is trying their level best to remedy the wrongdoings and restore the brand to its former glory.