Oreo, Cadbury, and the Global Snack Empire

Discover how a 100-year-old cheese business split into Mondelez International, the global snacking giant behind Oreo, Cadbury, and Toblerone.[INTRO]ALEX: If you’ve ever twisted an Oreo or unwrapped a Toblerone, you’ve contributed to a 31 billion dollar empire that literally invented its own name from thin air.JORDAN: Wait, invented the name? I always thought Mondelez sounded like a fancy European village.ALEX: It’s actually a portmanteau of the Latin word for 'world' and a stylized version of 'delicious.' They crowdsourced it from their own employees.JORDAN: So it’s corporate-speak for 'Delicious World'? That is the most 'big business' thing I’ve ever heard. ALEX: It perfectly encapsulates their goal: global snack domination. Today we’re looking at Mondelez International, the company that rose from a horse-drawn cheese wagon to become the world’s snacking powerhouse.[CHAPTER 1 - Origin]JORDAN: Okay, take me back. How do you go from cheese wagons to a global conglomerate with a made-up name?ALEX: It starts in 1903 with a man named James L. Kraft. He was selling wholesale cheese from a wagon in Chicago.JORDAN: Kraft? As in Kraft Mac and Cheese?ALEX: Exactly. Over the next century, Kraft Foods grew into a monster through massive acquisitions, including Nabisco—the creators of the Oreo—and eventually, a very controversial takeover of the British icon Cadbury in 2010.JORDAN: I remember that. People in the UK were furious. They thought a piece of their heritage was being swallowed by an American giant.ALEX: They were. And that acquisition was the final piece of the puzzle. By 2011, Kraft was so big it had an identity crisis. It was trying to sell both stable, boring North American groceries—like mayo and mac—and high-growth global snacks.JORDAN: It's hard to be both the turtle and the hare at the same time.ALEX: That’s exactly what the board thought. So, on October 1st, 2012, they pulled the trigger on a massive corporate divorce. The grocery side stayed 'Kraft,' and the global snacking side became Mondelez International.[CHAPTER 2 - Core Story]JORDAN: So Mondelez gets the 'fun' portfolio. Oreo, Ritz, Cadbury, Trident. What was the plan once they were on their own?ALEX: The first CEO, Irene Rosenfeld, had to prove this divorce was worth it. She focused on making these brands truly global. Think about the Oreo: it’s the world’s best-selling cookie because they didn't just ship the American version everywhere.JORDAN: Right, I’ve seen Green Tea Oreos in China and different flavors in Europe.ALEX: Exactly. They localized the palate while keeping the 'Twist, Lick, Dunk' ritual. But by 2017, the company needed a jolt. Enter Dirk Van de Put, the new CEO. He shifted the strategy from just managing old brands to a 'buy and sell' flywheel.JORDAN: Meaning they stopped just making cookies and started acting like a hedge fund?ALEX: In a way. Van de Put started hunting for high-growth, 'trendy' brands. They bought Tate’s Bake Shop for 500 million dollars because people wanted premium cookies. They bought Hu Master Holdings because health-conscious consumers wanted paleo-friendly chocolate.JORDAN: But they also get rid of stuff, right? I don't see much Trident gum around lately.ALEX: Good eye. In 2022, they sold their developed-market gum business for 1.35 billion dollars. They realized gum was a declining category, so they dumped it to double down on chocolate and biscuits.JORDAN: It sounds like a smooth operation, but a company this big has to have some skeletons in the pantry.ALEX: They have many. Because they rely so heavily on cocoa and palm oil, they are constantly in the crosshairs of environmental groups. Greenpeace has slammed them for deforestation in Southeast Asia that destroys orangutan habitats.JORDAN: And what about the cocoa? That’s usually a human rights nightmare.ALEX: It is. Despite their 'Cocoa Life' program, they face ongoing criticism regarding child labor in West African supply chains. It is the fundamental tension of the company: they want to sell 'mindful snacking,' but their ingredients come from some of the most complex and troubled regions on earth.JORDAN: And haven't they been in the news recently regarding Russia too?ALEX: Yes, they faced major boycotts, especially in Nordic countries, for continuing to operate in Russia after the 2022 invasion of Ukraine. It’s been a massive PR headache that proves being a 'global' brand means you can’t hide from global politics.[CHAPTER 3 - Why It Matters]JORDAN: Issues aside, you can’t argue with the scale. They are everywhere.ALEX: They operate in over 150 countries. About 38 percent of their revenue now comes from emerging markets. They aren't just selling to Americans; they are literally defining what 'snack time' looks like for the rising middle class in Asia and Latin America.JORDAN: It’s weird to think that one company in Chicago decides what a kid in Brazil and a professional in Germany are both eating at 3:00 PM.ALEX: That’s the power of the 'Billion-Dollar Brand.' When you own the color purple for chocolate—which Cadbury literally trademarked—you control the shelf.JORDAN: They own the color purple? That is a level of branding I didn't even know was possible.ALEX: Pantone 2685C. They fought in court for years to keep other companies from using it. It shows that Mondelez doesn't just sell food; they sell recognizable, emotional experiences that they guard with an army of lawyers.[OUTRO]JORDAN: Okay, Alex, for those of us standing in the snack aisle tonight: what’s the one thing to remember about Mondelez?ALEX: Remember that Mondelez is less of a food company and more of a global brand architect that constantly prunes and grows its portfolio to dictate how the world snacks.JORDAN: Even if they have to trademark a color to do it.ALEX: Exactly. That’s Wikipodia — every story, on demand. Search your next topic at wikipodia.ai