Dive Brief:
- Mondelez International is creating a separate, stand-alone business to house its cheese and grocery units in Europe. The new business will have about $1.4 billion in sales.
- The move comes just two months after Mondelez moved its coffee units into a separate company that was combined with the operations of D.E. Master Blenders 1753 BV.
- Creating a stand-alone company for cheese and grocery suggests that Mondelez intends to exit that business -- a move that may be driven by shareholders Nelson Peltz and Ralph Whitworth.
Dive Insight:
If Mondelez has to spin off or sell something to appease Peltz and Whitworth, the cheese and grocery business is clearly the best choice. Mondelez has said European cheese and grocery is its smallest segment, contributing to 3.9% of its revenue last year.
