Since Kraft(KFT) announced last year that it planned to spin off its North American Foods business from its Global
Snacks business, anticipation has been high to discover what the two new companies would be named. Well, the wait is over.
The company undertook a long and deliberate process
Last fall, the company invited employees from around the world to suggest names for the new global snacks company. As part of this co-creation process, more than 1,000 employees participated, submitting more than 1,700 names for consideration. Mondelez International was inspired by separate suggestions from two employees, one in Europe and another in North America
The decision is made. The North American grocery business will retain the Kraft name, while the Global Snacks business will be called Mondelez(rhymes, somehow, with Oh Puhhleez) International. The name, which to us sounds better suited for an eponymous import-export company in a nondescript warehouse must have some meeting. Tell us, what does it mean?
“The Kraft brand is a perfect fit for the North American grocery business and gives it a wonderful platform on which to build an exciting future,” said Chairman and CEO Irene Rosenfeld. ”For the new global snacks company, we wanted to find a new name that could serve as an umbrella for our iconic brands, reinforce the truly global nature of this business and build on our higher purpose – to ‘make today delicious.’ Mondelez perfectly captures the idea of a ‘delicious world’ and will serve as a solid foundation for the strong relationships we want to create with our consumers, customers, employees and shareholders.”
“It’s quite a job for a single word to capture everything about what we want the new global snacks company to stand for,” said Mary Beth West, Executive Vice President and Chief Marketing Officer. ”I’m thrilled with the name Mondelez International. It’s interesting, unique and captures a big idea – just the way the snacks we make can take small moments in our lives and turn them into something bigger, brighter and more joyful.”
There you have it- the head of a global food conglomerate believes that “Mondelez” perfectly captures the idea of a delicious world and the head of marketing is thrilled with it, believing it “captures a big idea”.
We disagree, and hope shareholders will take the opportunity to do so as well. The name change is subject to shareholder approval on May 23, 2012. If the name change takes effect, the company is expected to trade under the ticker MDLZ. Perhaps enough shareholders will awaken from their Oreos-induced slumber to vote and save the world from Mondelez.
In any event, the company expects the spin to be complete before year end.
Disclosure: The author hold no position in any stock mentioned