Mondelez International plans to separate off its European cheese and grocery business in order to focus on its fast-growing snack business, according to reports.
The new unit will include brands such as Philadelphia and regional favourites, Sottilette and El Casiero, and will have around $1.4bn in sales. The unit will function independently and will be headed by a President who will report to the President of Mondelez Europe.
The move comes just months after Mondelez agreed to split off its coffee unit to merge with that of rival DE Master Blenders 1753, in order to form a new entity to be called Jacobs Douwe Egberts. The new venture including brands such as Jacobs, Senseo and Douwe Egberts.
In a statement the company said: “Given the impact of the coffee transaction on our European operations, we’ve decided to create a predominantly stand-alone cheese and grocery category in Europe”.
The move is aimed at achieving greater efficiency in managing all of its food brands, according to the company. It plans to focus on its core snacks and confectionery brands to drive growth.
Those familiar with the business are reporting that the move may lead to a sale of the unit.
