Mondelez hires management advisor to cut 2.2 billion | RetailDetail

Mondelez hires management advisor to cut 2.2 billion

Mondelez hires management advisor to cut 2.2 billion

American snack producer Mondelez has hired management advisor Accenture to research its cost structures, as it seeks to save 2.2 billion euro in three years’ time. The system is already being used by 3G Capital, owners of Heinz.

Experienced cost-cutters

Ever since Mondelez, known for Cadbury chocolate and Trident gum, split off from Kraft Foods in 2012, it struggled to hit the ground running. It is underperforming compared to similar companies, which means shareholders are now complaining, forcing Mondelez’ hand.

 

3G Capital’s budget system – where managers have to build budgets from scratch – looks increasingly interesting as it is a cost-conscious system, which may benefit Mondelez in its aims to get its operational margin to 16 % in 2016. In order to achieve this, it hired Accenture, a management advisor with experience in huge cost-cutting endeavours.

 

“We’ve watched the work that 3G has done with AB InBev and Heinz – Accenture was the partner with them and we believe they can be of great help to us,” Irene Rosenfeld, chief executive of Mondelez, said. It has managed more synergy than anticipated in the merger between Ambev and Interbrew, while it also shut down 3 Heinz factories with 2,000 jobs lost.

Questions or comments? Please feel free to contact the editors


Are Chinese prisoners working for H&M and C&A?

20/02/2018

British former journalist Peter Humphrey has accused C&A and H&M of using forced labour. He claims to have seen how Shanghai prisoners were forced to work for Western chains, something the retailers will now investigate.

Chanel acquires stake in online retailer Farfetch

19/02/2018

French fashion label Chanel obtained a minority stake in British Farfetch. It wants to use the online retailer’s expertise to create more digital innovations for its own customers.

Monoprix wants to acquire web shop Sarenza

19/02/2018

Store chain Monoprix, part of French Groupe Casino, entered negotiations to acquire online shoe seller Sarenza, one of France’s prime online brands.

Zalando expands collaboration with German retailers

16/02/2018

Zalando has further expanded its collaboration with physical retailers in Germany. Shoe stores were already able to ship through Zalando and now clothes stores can too.

Kiabi opens largest Belgian store in Westland Shopping Center

15/02/2018

French clothing chain Kiabi will open its fifth Belgian store in the Westland Shopping Center in Anderlecht. This will become its largest Belgian store to date, spread across 1,800 sqm.

H&M warns for difficult 2018

15/02/2018

Swedish fashion group H&M warns that 2018 could be yet another difficult year for the company. It is working to improve online sales, but store turnover will most likely continue to drop.

Back to top