Azione Kraft Foods Group Forum | US50076Q1067

🍽️ Giants at the dinner table: Nestlé, Unilever & Co. - Who serves up the greatest success?

Company presentation

Nestlé, founded in Switzerland in 1866, is today the world's largest food company, with products ranging from baby food to coffee and pet food. Unilever was created in 1929 through the merger of a Dutch margarine manufacturer and a British soap producer and is now a global giant in the consumer goods sector. Coca-Cola, founded in Atlanta in 1886, is the world's leading beverage producer. PepsiCo, founded in 1965, is not only Coca-Cola's biggest competitor in the beverage market, but also a major player in the snack segment. Mondelez was founded in 2012 following the split-up of Kraft Foods and focuses on snacks and confectionery.

Historical development

$NESN (-0,02%) has developed into a diversified group over the decades through strategic acquisitions such as Maggi (1947) and Purina (2001). $ULVR (+0,16%) It also grew through significant acquisitions, such as Bestfoods (2000), but also had to shed business areas such as the frozen food segment (2006). $KO (-0,07%) and $PEP (+0,19%) have been competing intensively for decades and have increasingly expanded their portfolios. $MDLZ (+1,16%) Although Bestfoods has only been operating as an independent company since 2012, it benefits from the long tradition and experience of $KRFT Foods.

Business model and core competencies

Nestlé relies on an extremely broad brand portfolio and a global presence, with a particular focus on powdered and liquid beverages, especially coffee. Unilever has a strong position in personal care, household cleaners and food. Coca-Cola and PepsiCo dominate the global beverage market, with PepsiCo additionally diversified through a strong snacks business. Mondelez, on the other hand, focuses on snacks and confectionery, with globally recognized brands such as Oreo.

Future prospects and strategic initiatives

All five companies are placing greater emphasis on healthier and more sustainable product offerings. Nestlé is increasingly investing in personalized nutrition and health services. Unilever is driving sustainability initiatives and focusing on high-growth areas. Coca-Cola and PepsiCo are expanding their portfolios to include sugar-free and functional beverages. Mondelez is focusing primarily on growth in emerging markets and the expansion of e-commerce.

Market position and competition

Total Addressable Market (TAM)

The global market for packaged food and beverages, in which all five companies operate, is estimated at over USD 3 trillion. Driven by population growth and rising incomes in emerging markets, a significant increase is expected to continue.

Development

Nestlé is the largest manufacturer in its sector in terms of sales.

However, the company lags well behind its competitors in terms of sales growth. Coca-Cola and Mondelēz top the list here

The segmentation illustrates a distributed sales distribution with a focus on NA, although it is highly doubtful why the segmentation was chosen so unusually.

The distribution only looks better at Unilever, while Mondelēz has a solid country diversification.

In terms of gross margin, Nestlé is in the midfield and performs worse than Coca-Cola and PepsiCo. In contrast, Mondelēz and Unilever were able to increase their margins.

Coca-Cola stands out in terms of net profit margin, while the other companies are relatively far behind. However, the question arises as to why PepsiCo recorded such a drastic decline in its gross margin.

In terms of earnings per share (EPS), PepsiCo currently tops the list, followed by Nestle.

Free cash flow (FCF) is positive for all companies.

Share-based compensation (SBC) is also present at all companies. However, PepsiCo clearly stands out, while Nestlé is only just ahead of Mondelēz despite its size.

Part 2:https://getqu.in/uymSw7/