NEW YORK, May 29, 2013 /PRNewswire/ -- At the Citi 2013 Global Consumer Conference today, Chairman and CEO Irene Rosenfeld highlighted Mondelez International's opportunities to expand margins while funding investments in emerging markets to drive long-term growth.
"Mondelez International is a unique investment vehicle with all the elements in place for sustainable profitable growth," said Rosenfeld, underscoring the company's unrivaled portfolio of iconic brands in fast-growing snacks categories, proven innovation platforms, strong routes to market and advantaged geographic footprint. "With these assets, we will deliver top-tier financial results."
Rosenfeld affirmed the company's long-term financial targets, including growth of 5-7 percent in Organic Net Revenue and double-digit Operating EPS growth on a constant currency basis."Emerging markets are essential to our overall growth aspiration," Rosenfeld continued. "The race is on for us to secure and expand our positions in these fast-growing markets. Our competitors also find emerging markets attractive, so competition will intensify in the near term. That's why stepping up our investments now is critical to deliver long-term shareholder value." Focused Emerging Markets Investments Provide Growth, Attractive Returns Rosenfeld assured that the company would take a disciplined approach to these investments, "We won't invest unless we're confident we can achieve attractive returns within a reasonable time frame." The company expects to increase investments by about $100 million this year, $200 million in 2014 and up to $300 million in 2015 and thereafter in emerging markets. The investments broadly fall into three buckets:
- Boosting marketing and trade support behind Power Brands and global innovation platforms. These investments have a payback of about a year.
- Adding route-to-market and sales capabilities to expand coverage of outlets, particularly in traditional trade. These types of investments also have a quick payback, typically one to two years.
- Capitalizing on "white space" opportunities by entering new markets with new categories, such as the recent launch of Stride gum in China. White-space investments have a payback period of three-to-five years.