This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Mondelēz International is appointing current CFO Luca Zaramella to a newly created chief operating officer position, potentially setting up the long-time company executive to one day take over the top role at the Oreo maker. Zaramella will oversee the company’s commercial operations in its four geographical regions as well as the corporate sales, marketing and supply chai ...

Group 1: Company Overview - Mondelez International, Inc. (NASDAQ:MDLZ) is recognized as one of the 13 Best Consumer Staples Dividend Stocks to invest in currently [1] - The company operates through several core segments including biscuits, chocolate, gum, and candy, with a strong portfolio of established brands [2] - Mondelez sells its products in over 150 countries, providing it with significant scale and brand recognition [3] Group 2: Financial Performance and Outlook - TD Cowen analyst Robert Moskow has lowered Mondelez's price target from $68 to $62 while maintaining a Buy rating, reflecting a cautious outlook for the consumer staples sector in 2026 [2] - The firm anticipates a challenging year for large-cap names, with volume growth expected to remain negative at -0.9% for 2025 and pricing conditions to stay muted [2] - Cocoa costs are identified as a major headwind, with potential inflation impacting adjusted earnings per share by up to 15% in 2025 [2] Group 3: Dividend and Investment Appeal - Mondelez has consistently raised its dividend payout for over a decade, with a current yield of approximately 3.7% as of January 7 [3] - The company's strong financial position and brand portfolio provide some insulation against economic uncertainties [2]

Core Insights - Mondelēz is leveraging artificial intelligence through its generative AI tool AIDA to enhance marketing content production and personalization, aiming for higher engagement and conversion rates [1][6][7] - The company has invested over $40 million in AIDA, which is expected to reduce marketing content creation costs by up to 50% [5][6] - AIDA is still in the learning phase, being tailored to fit the unique needs of Mondelēz's diverse brand portfolio while ensuring responsible advertising practices [4][15] Investment and Strategy - The initial investment in AIDA is significant, prompting Mondelēz to prioritize features that deliver quick value [2] - The company is exploring which brands to pilot first with AIDA to maximize the tool's effectiveness [2][18] - AIDA's infrastructure is designed to be scalable, with plans to identify additional value cases for expansion [18] Technology and Implementation - AIDA was developed over two years and aims to create marketing content more efficiently, allowing for personalized material targeting specific consumer groups [6][7] - The company emphasizes the importance of integrating AI thoughtfully, ensuring it enhances existing processes rather than complicating them [8][9] - There is ongoing experimentation with AIDA to push its capabilities and improve output quality [11][12] Challenges and Considerations - The complexity of food marketing requires AIDA to maintain high fidelity in product representation, which differs from other consumer goods [13][14] - Mondelēz is committed to responsible AI use, ensuring that outputs align with brand values and do not promote unhealthy consumption [15][16] - Legal oversight remains a critical part of the process, with all marketing assets undergoing manual review before market release [17]

Core Insights - The rise of private label products is prompting more consumer packaged goods (CPG) manufacturers to take legal action against retailers for alleged imitation of their products [2][3][7] Group 1: Legal Actions - J.M. Smucker has filed a lawsuit against Trader Joe's, claiming that its crustless PB&J sandwiches are a clear imitation of Smucker's Uncrustables [2] - Mondelēz International has also sued Aldi, alleging that the grocery chain's snack products replicate the packaging of well-known brands like Oreos and Chips Ahoy! [2] Group 2: Market Dynamics - Private label products, once considered inferior, have become significant competitors in the market, available in various retail environments from small stores to large chains like Walmart and Costco [3] - Private label is projected to account for over 20% of food and grocery sales by 2025, up from 12% two decades ago, with sales reaching a record $271 billion in 2024, marking a 3.9% increase from the previous year [4][5] Group 3: Consumer Behavior - Inflation has led consumers to seek cost-saving options, making private label products more appealing [5] - Retailers are investing more in enhancing the quality and value of private label offerings, contributing to their growth [5] Group 4: Competitive Landscape - The competition between national brands and private label products is intensifying, with manufacturers increasingly willing to defend their market share through legal means [3][7] - The relationship between private label retailers and branded products is described as a "game of cat and mouse," where retailers attempt to closely mimic popular items to attract consumers [6][7]

Core Viewpoint - Lululemon has filed a lawsuit against Costco, accusing the retailer of selling knockoff versions of its popular products, highlighting the challenges faced by established brands in combating "dupe culture" [1][2]. Group 1: Lawsuit Details - The lawsuit, filed in California, claims that Costco is selling and manufacturing knockoffs of Lululemon's Scuba sweatshirts, Define jackets, and ABC pants, alleging trade dress infringement and unfair competition [2]. - Lululemon seeks compensation for lost profits and significant harm to its brand and reputation due to Costco's actions [2]. Group 2: Legal Challenges - Winning a trademark infringement lawsuit over dupe products is difficult, as the original manufacturer must prove that the copycat product could confuse customers into believing it is the real item [3][4]. - The burden of proof lies with the original company to demonstrate that the copycat product has caused confusion and impacted their business, which is challenging to establish [4]. Group 3: Industry Context - The rise of "dupe culture" has been significantly influenced by social media platforms like TikTok, where consumers actively seek and share cheaper alternatives to high-end products [6]. - TikTok videos featuring the dupe hashtag have garnered over 6 billion views, indicating a growing acceptance of purchasing knockoff products among younger consumers [6]. Group 4: Related Legal Cases - A notable case involved e.l.f. Cosmetics, which admitted to creating a product that mimicked Benefit Cosmetics' mascara but was ruled not to infringe on trademarks due to insufficient evidence of customer confusion [7][8]. - Other companies, such as Mondelez International and Williams-Sonoma, are also pursuing legal action against retailers and websites for similar trademark infringement claims [8].

Group 1: Passive Income and Investment Opportunities - Generating passive income can lead to financial freedom and increased independence [1] - Investing in high-yield dividend stocks, particularly in the food and beverage industry, is a viable strategy for passive income [2] Group 2: Mondelez - Mondelez has a current dividend yield of 2.9%, which is more than double the S&P 500's yield of 1.4% [3] - The company owns iconic brands like Oreo and Cadbury, generating billions in revenue and free cash flow, supporting a 10.5% compound annual growth rate in dividends over the past five years [4] - Mondelez aims for organic revenue growth of 3% to 5% annually, supporting high-single-digit EPS growth, and has a strong balance sheet for acquisitions [5] Group 3: PepsiCo - PepsiCo offers a dividend payout of 4.1% and plans to increase it by 5% starting in June, marking 53 consecutive years of dividend growth [6] - The company has a diverse portfolio of brands, many generating over $1 billion in annual sales, with durable demand [7] - PepsiCo invests in product innovation and productivity, expecting 4% to 6% annual organic revenue growth and high-single-digit EPS growth, with a strong balance sheet for acquisitions [8] Group 4: Starbucks - Starbucks has a dividend yield of 2.9% and has increased its dividend for 14 consecutive years, with a 20% compound annual growth rate during that period [9] - The company sees potential to double its U.S. store footprint and expand internationally, with over 40,000 stores currently [9] - Starbucks aims to enhance sales growth and profitability by focusing on coffee and improving customer experience [10] Group 5: Industry Overview - The food and beverage sector is characterized by steadily rising revenue and cash flow, enabling companies to pay growing dividends [12] - Companies like Mondelez, PepsiCo, and Starbucks are highlighted as strong candidates for passive income due to their enticing and steadily increasing dividends [12]

Core Insights - Mondelēz International has appointed Norberto Chaclin as Executive Vice President and Chief Research & Development Officer, aiming to enhance its R&D and quality strategy to shape the future of snacking [1][2] Company Leadership - Norberto Chaclin is recognized as a proven leader with a strong track record in innovation and a commitment to mentoring future R&D talent, which is expected to strengthen partnerships with commercial businesses and drive consumer-centric growth [2][4] - Chaclin previously served as Senior Vice President of R&D for Global Biscuits and has led significant innovations for brands like Oreo and Ritz [2][3] Background of New Executive - Chaclin has 18 years of experience at PepsiCo, where he held various roles, ultimately leading R&D for North America Beverages [3] - He holds a bachelor's degree in chemical engineering and an MBA, and is involved in food and nutrition sciences [5] Company Overview - Mondelēz International reported net revenues of approximately $36.4 billion in 2024 and operates in over 150 countries with iconic brands such as Oreo, Ritz, and Cadbury [6]