First, there will be billions of new customers around the world for Mondelez, the snacks food company spun off from Kraft Foods Group, now Kraft Foods (KRFT), in October 2012, in the consumer sector...literally.
According to a recent report by McKinsey Quarterly, a publication of the global consulting firm McKinsey & Co., there will be over four billion consumers in the world by 2025 due to urbanization. The growth of urban areas results in greater economic output due to increased market efficiencies, which creates more affluent consumers. The number of those living in cities around the world is up from one billion in 1990, according to "Unlocking the Potential of Emerging Market Cities."
From these new consumers, there will be an increasing demand for the products of Mondelez, including such favorites as Chips Ahoy and Oreo cookies and Cadbury chocolates.
Mondelez already derives more than 40% of its sales from emerging market nations. The company was spun off to reward shareholders with a new stock that could capitalize on the high demand for snack products from abroad. Kraft retained the sluggish North American foods divisions.
Second, with billions of new consumers, demand for items from Mondelez should continue to rise, even though sales growth has been anemic. Mondelez products are so strong that activist Nelson Peltz, who is a major shareholder, stated that coco trees in India that provide the beans for chocolate are called "Cadbury Trees."