The confectionery industry is not immune to economic recession and must exploit opportunities in emerging economies to grow, according to an analyst from Goldman Sachs.
Mondelēz International was weighed down by operational issues in Brazil and Russia in the third quarter (Q3) which harmed overall performance in its first results since it split from Kraft Foods in October.
The Mondelez Series - New confectionery powerhouse
The developing markets of Brazil, Russia, India and China will drive sales for Kraft’s global snacks business Mondelez International, according to CEO Irene Rosenfeld.
General Mills sees great potential for its snacks and cereals segments outside North America as population growth in emerging markets looks set to soar.
Brazil, Russia, India and China will feature in the top five biggest grocery markets by 2015, with China set to snatch the top spot from the US in 2012, predicts IGD.
Walmart has announced the closure of its office in Moscow, opened just last year, as it does not see any suitable acquisition opportunities on the horizon.