Economics of the...

The
Economics
of
the
Cookie
and
Cracker
Industry

1

The
Economics
of
the
Cookie
and
Cracker
Industry

Intermediate
Accounting

Gage
Thacker

Heidelberg
University

Final
Paper

The
Economics
of
the
Cookie
and
Cracker
Industry

2

In
2014,
the
cookie
and
cracker
industry
is
everywhere.
They
are
being
sold

through
every
major
distributor
nationally;
including
grocery
and
mass

merchandisers,
convenience
stores,
club
stores,
food
service
outlets
and
other

smaller
channels
(Woolford,
2).
Some
of
the
brands
of
cookie
and
crackers
are
Lance

Sandwich
Crackers
(NASDAQ:
LNCE),
RITZ(NASDAQ:
MDLZ),
Snyder’s
of

Hanover(NASDAQ:
LNCE),
Cheez-‐It(NASDAQ:
K),
Oreo(NASDAQ:
MDLZ),

and

Nabisco
Crackers(NASDAQ:
MDLZ).
These
brands
are
made
up
of
three
companies;

Mondelez
International,
Snyder’s-‐Lance
Incorporated,
and
The
Kellogg
Company.

Mondelez
International
is
a
“global
snacking
powerhouse”
who
sells
their

products
in
165
countries
worldwide
(WSJ,
11/26/13,
2).
Their
most
notable
cookie

and
cracker
brands
are
Oreo,
Ritz,
Honey
Maid
crackers,
belVita
breakfast
biscuits,

and
Nabisco
products
(WSJ,
11/26/13,
1)(Mitchell,
1).
They
are
headquartered
out

of
Deerfield,
Illinois
where
James
Lewis
Kraft
founded
it
in
1903.
Originally
they

where
called
Kraft
Foods,
Inc.
until
it
was
changed
to
Mondelez
International
Inc.
on

October
1,
2012
after
a
spin-‐off
of
Mondelez’
North
American
grocery
business
to

Kraft
Foods
Group
Inc.
Mondelez
has
107,00
employees
throughout
their
five
global

segments
which
includes,
Latin
America;
Asia
Pacific;
Eastern
Europe,
Middle
East
&

Africa;
Europe,
and
North
America
(WSJ,
4/18/14,
1).

They
had
comprehensive

earnings
of
$3.692
million
in
2013(Mondelez,
63)
and
are
looking
to
increase
that
in

2014
by
being
more
active
in
social
media
(Jones,
1),
being
more
familiar
with
their

consumers
(Fontes,
1),
popular
culture
(WSJ,
11/26/13,
1),
and
by
expanding
their

global
markets
(Mitchell,
1).

The
Economics
of
the
Cookie
and
Cracker
Industry

3

There
is
only
one
segment
of
Mondelez
International
Inc.
that
focuses
on

national
markets,
which
is
why
Mondelez
has
invested
over
$340
million
dollar
in

European
factories
since
2010.
This
includes
sites
in
France,
the
United
Kingdom,

Central
Europe
and
most
recently
the
Czech
Republic.
The
investment
in
the
“state-‐
of-‐the-‐art”
biscuit
manufacturing
plant
that
took
place
in
Opava,
Czech
Republic
cost

Mondelez
International
over
$100
million.
They
will
be
creating
200
new
roles
in

the
manufacturing
of
Oreo
cookies
and
the
belVita
breakfast
biscuits.
This
is
because

there
is
a
growing
need
for
these
products,
which
is
shown
by
how
Oreo’s
net

revenue
has
grown
25%
and
belVita’s
have
grown
18%
since
2009
in
Europe.
The

Senior
Vice
President
of
the
Integrated
Supply
Chain
Phil
Hodges
for
Mondelez

Europe
said
“We’ve
seen
phenomenal
growth
in
our
biscuit
business
in
recent
years,

especially
our
Oreo
and
belVita
Power
Brands.
This
new
facility
will
help
us
keep
up

with
future
demand
by
creating
additional
capacity
(Mitchell,
1).”

Mondelez
International
Inc.
has
also
been
focusing
on
both
global
and

national
markets
by
focusing
more
on
social
media
in
its
advertisements
and

campaigns.

They
have
already
had
branded
campaigns
for
their
brands
Cadbury

Crème
Egg,
Milka
and
Nilla
Wafers
on
Facebook
Inc.,
and
those
worked
very
well
for

them.
After
this
Mondelez
International
said
“those
campaigns
demonstrated
that

advertising
on
the
social
network
is
able
to
drive
more
growth,”
because
of
this

Mondelez
has
decided
to
add
advertising
through
Facebook
into
the
“core”
of
their

“media
investment
plans.”
The
partnership
between
Facebook
Inc.
and
Mondelez

International
Inc.
spreads
out
to
52
countries,
including
the
United
States,
the

United
Kingdom,
Brazil,
the
Gulf
States,
France,
Indonesia
and
India.
Along
with
the

The
Economics
of
the
Cookie
and
Cracker
Industry

4

advertisements
that
Mondelez
receives
from
this
they
also
are
able
to
opt
into

Facebook’s
beta-‐testing
programs,
and
is
enabled
access
to
its
research
and
allows

them
to
participate
in
“capability
through
immersion
days
in
priority
markets

(Jones,
1).”

Another
way
that
Mondelez
International
Inc.
“continues
to
shift
more
of
its

media
spending
to
digital
platforms”
is
by
teaming
up
with
Twitter
Inc.
for
the
SXSW

Interactive
Festival.
They
are
doing
this
by
hosting
an
Oreo
Trending
Vending

Lounge
during
the
festival.
This
will
be
“a
space
that
will
deliver
deliciously
hyper-‐
personalized
and
customized
snacks
based
on
real-‐time
data
collection.”
The
Oreo

Trending
Vending
Lounge
will
let
participants
create
their
own
unique
flavors
and

colors
of
Oreos.
These
will
be
made
in
“real
time
with
experimental
3d
printing

technology.”
Twitter
Inc.
is
involved
with
this
project
because
the
custom
Oreo

cookies
are
based
on
social
conversations
that
are
trending
on
Twitter
based
on

various
Twitter
users
tweets
(Jones,
1,2).

Along
with
trying
to
be
apart
of
every
American’s
life
through
social
media,

Mondelez
International
Inc.
is
forcing
itself
into
“the
most
wonderful
time
of
the

year.”
Mondelez’
brand
RITZ
crackers
has
developed
a
seasonal
program
called
“The

Great
RITZ
Holiday
Parade.”
This
is
a
digital
parade
that
“marches”
across
the
web

from
the
previous
Thanksgiving
up
to
the
previous
Christmas.
While
this
digital

“march”
took
place,
RITZ
gave
out
valuable
entertainment,
food
and
shopping
deals,

recipe
ideas
and
“FUN!”
RITZ
is
also
allowing
their
customer
base
to
join
in
on
this

parade
by
“creating
their
own
customized
floats
and
following
the
parade
online.”

The
Economics
of
the
Cookie
and
Cracker
Industry

5

Whenever
this
parade
stops
the
company
is
offering
“strategically
planned
content”

and
giveaways
to
maximize
their
consumers
interest.

“It’s
too
easy
to
get
caught
up
in
the
stress
of
the
holidays,
so
we
made

it
a
point
this
year
to
put
ourselves
in
our
consumers’
shoes
and
help

them
enjoy
the
holidays
with
their
family
and
friends.
When

developing
the
Great
RITZ
Holiday
Parade,
we
strategically
designed

our
content
and
offers
to
be
truly
helpful,
to
bring
a
smile,
and
to

encourage
sharing.”

This
was
said
by
Katrina
Cohen
who
is
the
Senior
Brand
Manager
of
RITZ
at

Mondelez
International
talking
about
the
reason
for
the
Great
RITZ
Holiday
Parade

and
what
they,
Mondelez
International,
hoped
to
accomplish
with
it.
Mondelez
also

partnered
up
with
a
variety
of
online
retailers
and
websites
to
help
them
with
their

holiday
parade.
Some
of
these
include
offers
on
Felix
Doolittle
stationary,
Kollaburra

boots,
free
specialty
cards
from
Sincerely,
Walmart
photo
studio
discounts,
$10
off

at
Living
Social,
and
they
also
partnered
up
with
the
Food
Network
Thanksgetaway

Sweepstakes.
(Fontes,
1)

Another
way
that
Mondelez
International
Inc.
is
looking
to
upgrade
its

comprehensive
earnings
is
by
helping
fund
and
advertising
at
the
North
American

part
of
the
award
winning
band
One
Direction’s
WHERE
WE
ARE
stadium
tour.
This

will
be
sponsored
by
Mondelez’
brand
Nabisco,
which
will
allow
them
to
show
off

their
advertisements
for
Oreo,
RITZ
and
Honey
Maid.
Their
goal
for
this
is
to
receive

more
recognition
for
this,
which
will
lead
to
higher
revenue
in
the
future
(WSJ,

11/26/13,
1).

The
Economics
of
the
Cookie
and
Cracker
Industry

6

These
are
the
multiple
ways
that
Mondelez
International
has
looked
to

increase
its
future
revenue
in
the
coming
years.
Their
past
few
months
have
shown

why
they
need
to
start
improving
their
numbers.
In
early
February
they
reported

“lackluster
financial
results”
which
according
to
Annie
Gasparro
of
The
Wall
Street

Journal
reflects
“the
packaged-‐food
industry’s
continued
struggle
with
weak

consumer
spending
and
cutthroat
competition
(Gasparro,
1).”
Mondelez
has
also

offered
a
cash
tender
offer
for
up
to
$1.5
billion
in
debt
that
is
due
from
2017
to

2020
in
November
of
2013
(Rubin,
1).
Their
stock
prices
have
increased
slightly
as

well
rising
from
$32.29
on
October
17.2013
up
to
$34.55
on
March
31,
2014,
which

is
an
increase
of
only
6.9%
(see
stock
prices).
Going
along
with
stocks,
Mondelez

International
Inc.
paid
$943
million
worth
of
dividends
in
2013,
which
is
$1,115

million
dollars
less
than
2013
(Mondelez,
54).
Mondelez
International
is
seen
as
a

“global
snacking
powerhouse
(Fontes,
1),”
but
it
has
also
seen
“a
recent
run
of

gloomy
news
(Gasparro,
1).”

Snyder’s-‐Lance
is
a
leading
company
in
the
cookie
and
cracker
industry.
This

is
because
their
product
Lance
sandwich
crackers
are
the
market
leader
in
that

industry
(Lee,
3).
Snyder’s-‐Lance’s
core
brands
are
Snyder’s
of
Hanover,
Lance.

Some
of
their
“allied
brands”
are
also
in
the
cookie
and
cracker
industry
including

Archway,
and
Stella
D’oro
who
both
produce
cookies
(Lee,
7).
Headquartered
in

Charlotte,
North
Carolina,
Snyder’s-‐Lance,
Incorporated
sells
their
pretzels,

sandwich
crackers,
potato
chips,
cookies,
tortilla
chips,
restaurant
style
crackers,

nuts
and
other
snacks
both
internationally
and
throughout
the
United
States

(Woolford,
2).
They
have
5,700
associates
who
are
spread
out
through
their
ten

The
Economics
of
the
Cookie
and
Cracker
Industry

7

national
manufacturing
centers
(Lee,
7).
Having
a
net
income
of
$79
million
dollars

in
2013
(Lee,
6),
Incorporated
has
tried
to
continue
their
success
by

sweepstakes
for
students
(Woolford,
1),
new
products
for
2014
(Lee,
4),
and

continuing
to
build
and
strengthen
national
distribution
network

(Carter,
1).

Incorporated
used
it’s
Lance
Sandwich
Crackers
brand
to

help
out
parents
and
students
by
creating
the
Lance
“Back
to
School”
Sweepstakes
in

August
of
2013.
The
reason
for
this
was
to
“alleviate
some
of
the
stress
associated

with
tuition
costs
and
school
supplies.”
Tom
Ingram
who
is
the
Senior
Brand

Director
at
Incorporated
had
this
to
say
about
the
company’s

sweepstakes:

“At
Lance
we
have
the
easy
part
in
supporting
kids—making
sandwich

crackers
filled
with
protein
and
real
peanut
butter
or
cheese.
We

applaud
the
parents
and
educators
who
nourish
kids
of
all
ages
with

essential
reading,
writing,
math,
science
and
critical
thinking
skills.
The

education
focused
sweepstakes
and
prizes
further
demonstrate
our

commitment
to
support
learning
and
education
for
kids
of
all
ages.”

The
prizes
in
this
sweepstakes
are
a
lot
of
instant
win
and
weekly
prize

opportunities,
three
grand
prizes
of
$10,000
to
help
with
rising
tuition
costs,
two

hundred
entrants
also
receive
a
$100
Visa
gift
card,
as
well
as
giving
out
3.500

limited
edition
lunch
boxes.
This
was
a
part
of
Incorporated’s
100th

anniversary
celebration.
Other
ways
that
they
have
given
back
to
their
consumers

during
their
100th
anniversary
is
by
traveling
across
the
country
with
their
“Lance

The
Economics
of
the
Cookie
and
Cracker
Industry

8

Snack
Patrol”
where
they
surprise
people
with
free
products
and
“fun-‐filled”

activities”
at
parks
and
community
events,
and
coming
out
with
new
products
and

brands
(Woolford,
1).

Along
with
all
of
Incorporated’s
celebrations
for
their
100th

anniversary
they
have
also
been
working
hard
to
bring
in
new
products
for
their

consumers
in
2014.
In
the
President
and
Chief
Executive
Officer
Carl
E.
Lee
Jr.’s

letter
to
the
stockholders
in
the
2013
annual
report
he
discussed
how
“product

innovation
will
be
a
key
component
of
our
growth
strategy
for
this
group
of
brands

in
2014.”
These
new
products
are
Sweet
&
Salty
pieces,
Korn
Krunchers,
pretzel

Spoonz,
and
new
spicy
sandwich
crackers
from
Lance
(Lee,
4).

Incorporated
are
also
looking
to
grow
their
net
income
by

“growing
and
strengthening
its
national
distribution
network.”
They
are
doing
this

by
purchasing
all
assets
of
Stateline
Service
Corporation
in
August
of
last
year.

Stateline
Service
Corporation
is
a
snack
food
distributor
placed
in
Massachusetts.
Ed

Good
who
is
the
President
of
Stateline,
which
is
now
a
subsidiary
of

Incorporate,
had
this
to
say
about
the
acquisition:

“We’re
excited
to
expand
our
direct
store
delivery
(“DSD”)

distribution
network
through
this
acquisition.
Through
closer

working
relationships
with
key
retailers,
we
expect
to
build
on
the

successful
business
that
Stateline
has
developed
in
this
important

geographic
are.
We
see
an
opportunity
to
expand
our
DSD
network,

enhance
service
to
retail
customers
and
develop
long
term

The
Economics
of
the
Cookie
and
Cracker
Industry

9

opportunities
for
our
independent
business
owners
(“IBO”)
in
the

region.”

This
is
another
way
that
Snyder’s-‐Lance
has
grown
it’s
DSD
network
through

“selective
acquisition.”
They
will
integrate
Stateline
into
their
company
by
having

them
distribute
Snyder’s-‐Lance
products,
and
putting
Stateline
into
their
extensive

direct
store
delivery
network.
Snyder’s-‐Lance
is
hoping
that
this
acquisition
will

better
service
retail
partners
that
sell
their
brands,
and
leverage
supply
chains

including
other
efficiencies
(Carter,
1)
This
acquisition
will
now
be
apart
of

Incorporated’s
more
than
3,000
independent
business
owner
sales

routes
(Lee,
8).

Along
with
their
net
income
of
$79
million
dollars

Incorporated
there
are
many
things
that
have
their
President
and
CEO
raving
about

their
“excellent
results”
in
2013.
Along
with
their
growing
net
income
consolidated

revenues
also
increased
9%,
and
their
organic
growth
of
core

brands
grew
by
5%
in
the
past
year.
All
of
the
growing
revenue
drove
earnings
per

share
up
22%
for
the
year
2013
(Lee,
3).
They
have
also
given
out
dividends
in
2013

including
a
cash
dividend
of
$0.16
per
share
in
the
third
quarter
(WSJ,11/26/13,
1).

Snyder’s-‐Lance
also
had
“record
earnings”
(Lee,
3)
for
their
revenues
at
$1,761,049

for
the
year
(Lee,
6).
Even
though
Snyder’s-‐Lance
financially
had
a
“solid
year”
(Lee,

3)
there
where
also
set
backs
in
the
fact
that
from
October
17th,
2013,
to
March
31st,

2014
the
stock
price
fell
from
$29.72
to
$28.12
which
is
a
decrease
of
5.7%
(see

stock
prices).
President
and
CEO
Carl
E.
Lee
Jr.
had
this
to
say
about

Incorporated’s
2013
year:

The
Economics
of
the
Cookie
and
Cracker
Industry

10

Looking
ahead,
we
are
excited
about
our
product
lineup
for
next
year.

We
have
a
number
of
great
new
items
and
flavors
in
our
core
brands

along
with
improvements
in
several
of
our
more
regional
allied

brands.
This
pipeline
of
innovation
is
very
robust
and
we
anticipate

solid
growth
as
we
move
into
2014.
We
also
continue
to
grow
our

independent
business
owner(IBO)
based
distribution
network,
and

have
recently
acquired
additional
routes
in
a
key
geography
(WSJ,

11/7/13,
1).”

Kellogg’s
is
another
company
that
is
a
leader
in
the
cookie
and
cracker

industry.
Being
the
second
largest
producer
of
cookies
and
crackers,
Kellogg’s
is
the

maker
of
famous
brands
such
as
Keebler,
Special
K,
Pringles,
Frosted
Flakes,
Pop-‐
Tarts,
Corn
Flakes,
Rice
Krispies,
Kashi,
Cheez-‐It,
Eggo,
Coco
Pops,
and
Mini-‐Wheats.

Cheez-‐It
crackers
and
Keebler
cookies
are
their
main
brands
in
the
cookie
and

cracker
industry
of
America
(Evora,
1).
Being
founded
in
1906
the
Kellogg
Company

is
headquartered
out
of
Battle
Creek,
Michigan
(Kellogg,
2)
and,
along
with
being
the

second
largest
producer
of
cookies
and
crackers,
they
are
also
the
world’s
leading

cereal
company
(Evora,
1).
Their
President
and
CEO
is
a
Mr.
John
A.
Bryant
who
was

appointed
there
in
2010
after
joining
Kellogg’s
in
1998
(Kellogg,
4,5).

Kellogg

Company
is
considered
a
global
company
because
they
manufacture
their
various

products
out
of
eighteen
countries
and
sell
these
products
to
more
than
180

countries,
with
30,277
total
employee’s
work
at
(Kellogg,
2).
They
sell
their

products
to
many
places
but
their
biggest
customer
is
Wal-‐Mart
stores
where
21%

of
Kellogg’s
consolidated
net
sales
took
place
at
in
2013
(Kellogg,
4).
Kellogg

The
Economics
of
the
Cookie
and
Cracker
Industry

11

companies
total
net
sales
for
2013
where
$14.972
million
which
was
their
highest
in

at
least
the
past
five
years
(Kellogg,
14).
They
are
trying
to
build
on
this
success
by

being
ethical
(WSJ,
3/20/14,
1),
acting
on
their
“commitment
to
returning
cash
to

share
owners
(Stynes,
1),”
and
being
there
for
families
of
any
culture
(Evora,
1).

Kellogg’s
has
now
been
recognized
for
the
sixth
time
since
2007
as
one
of
the

World’s
Most
Ethical
Companies
by
Ethisphere
Institute.
Ethisphere
Institute
is
a

research
center
that
promotes
the
best
practices
in
corporate
ethics
and

governance.
According
to
this
research
center,
Kellogg’s,
along
with
the
other

companies
honored,
“understand
the
correlation
between
ethics,
reputation
and

daily
interactions
with
their
brand.”
Ethisphere
also
said
that
they
“not
only

promote
ethical
business
standards
and
practices
internally,
they
exceed
legal

compliance
minimums
and
shape
future
industry
standards
by
introducing
best

practices
today.”

John
Bryant
who
as
stated
earlier
is
the
President
and
CEO

believes
that
they
have
received
this
honor
so
often
because
“our
century-‐old
legacy

of
integrity
lives
on
in
the
way
we
run
our
business,
serve
our
customers
and

consumers,
create
value
for
our
investors,
and
make
a
difference
in
our

communities.”
Ethisphere
Institute
determines
their
World’s
Most
Ethical
list
by

rating
companies
on
five
different
categories.
These
categories
are
ethics
and

compliance
program,
which
is
25%
of
the
grade,
reputation,
leadership,
and

innovation,
which
is
20%
of
the
grade.
The
next
category
is
governance,
which
is

10%
of
the
score,
then
there
is
corporate
citizenship
and
responsibility
which
is

25%
of
Ethisphere’s
score.
The
last
category
that
Ethisphere
uses
to
determine
their

The
Economics
of
the
Cookie
and
Cracker
Industry

12

list
is
the
culture
of
ethics
in
the
company,
which
is
20%
of
their
rating
(WSJ,

3/20/14,
1).

Kellogg
Company
has
also
recently
been
in
the
news
for
buying
back
debt

and
treasury
stock.
In
February
of
this
year
Kellogg
has
offered
to
repurchase
$700

million
worth
of
treasury
notes
that
are
due
between
2020
and
2023.
Along
with

this
Kellogg’s
has
also
repurchased
$1.5
billion
dollars
worth
of
its
own
stock.

Kellogg
Company
has
said
that
“the
buyback
plan
represents
its
commitment
to

returning
cash
to
share
owners
(Stynes,
1),”
but
according
to
Jennifer
Bowman
of

BattleCreekObserver.com
many
investors
are
looking
to
acquire
Kellogg’s
including

billionaire
Warren
Buffett,
and
PepsiCo
Inc.,
so
they
are
acquiring
this
treasury

stocks
to
avoid
a
takeover
(Bowman,
1).

Along
with
being
proactive
in
any
takeover
attempts,
and
being
ethically

sound,
Kellogg
Company
has
recently
been
connecting
with
Hispanic
families
by

their
own
online
community
Dias
Grandiosos,
which
translates
to
“great
day.”
Dias

Grandiosos
is
their
new
digital
platform
that
features
recipes,
tips,
articles,
and

original
content
that
is
designed
by
Latina’s
for
Latina’s.
Kellogg
has
decided
to
do

this
because
80
percent
of
Latinas
use
the
Internet
to
help
them
make
purchases,

and
because
Latina
moms
are
“constantly”
looking
for
new
ways
help
them
in
the

decision-‐making
process.
Christopher
Rivera,
who
is
the
associate
director
in
the

multicultural
brand-‐marketing
department
at
Kellogg’s
said
this
about
the
new

service
from
Kellogg’s:

“Dias
Grandiosos
is
grounded
in
the
understanding
that
Latinas
are

trying
to
find
balance
between
maintaining
their
cultural
heritage

The
Economics
of
the
Cookie
and
Cracker
Industry

13

while
embracing
a
more
American
lifestyle.
We
help
her
find
this

balance
through
deliciously
nutritious
recipes,
compelling
articles,

and
relatable
stories
about
real
Hispanic
women
and
their
families

with
topics
that
she
cares
about
and
that
are
relevant
to
our
brands

(Evora,
1).”

Along
with
high
net
sales
in
2013
Kellogg
Company
has
also
given
$1.80

worth
of
cash
dividends
per
common
stock
in
2013
(Kellogg,
15).
Kellogg
Company

was
also
one
of
the
Wall
Street
Journals
stocks
to
watch
in
early
February,
because

they
“swung
to
a
fourth-‐quarter
profit
on
lower
expenses
and
a
mark-‐to-‐market

benefit
that
offset
a
decline
in
the
cereal
maker’s
revenue.
Earnings
slightly
beat

views
(Kell,
2).”
They
have
also
had
to
close
factories,
and
they
have
had

underperforming
brands
in
2013,
which
led
to
reductions
in
corporate
overhead

(Gasparro,
2).
This
is
because
they
have
recently
“faced
increased
competition”
as

well
as
a
lot
less
of
a
demand
as
of
late
from
consumers
(Stynes,
1).

Kellogg’s
is

hoping
to
fix
these
problems
by
their
“Project
K”
which
was
announced
in
2013.

Project
K
is
an
efficiency
and
effectiveness
program
that
will
span
four-‐years,
and

hopefully
generate
a
great
amount
of
savings,
which
will
eventually
lead
to
growth

in
revenues,
gross
margin,
operating
profit
as
well
as
cash
flow
(Kellogg,
16).

Products
in
the
cookie
and
cracker
industry
might
be
being
sold
throughout

every
major
distributor
nationally
(Woolford,
2),
but
it
is
also
being
sold
in
many

countries
around
the
world
(WSJ,
4/18/14,
1)
(Evora,
1)
(Fontes,
1)
Mondelez

International
is
a
“global
snacking
powerhouse”
who
owns
brands
such
as
Oreo,

RITZ,
and
Nabisco
(WSJ,11/26/13,
1)
that
had
had
comprehensive
earnings
of

The
Economics
of
the
Cookie
and
Cracker
Industry

14

$3.692
million
in
the
year
2013.
Incorporated
has
the
number
one

sandwich
cracker
in
the
nation
along
with
their
$1.8
billion
in
total
revenues
in

2013.
Kellogg
Company
is
the
second
largest
producer
of
cookies
and
crackers,
they

are
most
well
known
for
their
brands
Cheez-‐It
crackers
and
Keebler
cookies
in
the

cookie
and
cracker
industry
(Evora,
1).
These
three
companies
have
collectively

made
over
$4.6
billion
in
revenue
in
2013
(Mondelez,
30)
(Kellogg,
18)
(Lee,
6).

The
Economics
of
the
Cookie
and
Cracker
Industry

15

Works
Cited

1.
Bowman,
J.
(2014,
April
9).
Kellogg
takeover
speculation
continues.
Battle
Creek

Enquirer.
Retrieved
April
20,
2014,
from

http://www.battlecreekenquirer.com/article/20140409/NEWS01/3040900

06/Kellogg-‐takeover-‐speculation-‐continues

2.
Carter,
M.
(2013,
November
27).
Snyder's-‐lance
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service

corporation.
The
wall
street
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Retrieved
from

http://online.wsj.com/article/PR-‐CO-‐20130827-‐

909832.html?mod=WSJ_qtoverview_prlatest

3.
Evora,
J.
(2014,
April
14).
Kellogg's(R)
Helps
Families
Brighten
Their
Day
With

The
Launch
Of
Dias
Grandiosos.
The
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Retrieved
April
18,

2014,
from


4.
Fontes,
K.,
&
Weil,
D.
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26).
Ritz
crackers
is
reimagining
seasonal

fun
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great
ritz
holiday
parade.
The
wall
street
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910130.html?mod=WSJ_qtpressrel_pressrel

5.
Gasparro,
A.
(2014,
February
17).
Food
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Gloomy
News.
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Wall
Street
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18,
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from

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3603716389282?mod=WSJ_qtoverview_wsjlatest&mg=reno64-‐wsj

6.
Jones,
Michelle.
"Facebook
Inc
(FB),
Twitter
Inc
(TWTR)
Partner
with

Mondelez."
ValueWalk.com.
N.p.,
06
Mar
2014.
Web.
10
Mar
2014.

The
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of
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<http://www.valuewalk.com/2014/03/facebook-‐inc-‐fb-‐twitter-‐inc-‐twtr-‐

partner-‐with-‐mondelez/>.

7.
Kell,
J.
(2014,
February
6).
Stocks
to
Watch:
Green
Mountain,
Pandora,
Twitter
-‐

MoneyBeat
-‐
WSJ.
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18,
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http://blogs.wsj.com/moneybeat/2014/02/06/stocks-‐to-‐watch-‐green-‐

mountain-‐pandora-‐twitter/?mod=WSJ_qtoverview_wsjlatest

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Kellogg
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25).
investor.kelloggs.com.

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20,
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0-‐K%20with%20supplement.p

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Lee
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January
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Snyder's-‐Lance
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http://files.shareholder.com/downloads/LNCE/3100391356x0x741740/54

3C1A70-‐1278-‐4EEF-‐85FF-‐

1DEF58518D13/Snyder_s_Lance_2013_Annual_Report_-‐_LNCE.pdf

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Mitchell,
M.
(2013,
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18).
Mondelez
international
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over
$100

million
in
new
european
biscuit
factory.
The
wall
street
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from


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International,
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International,
Inc.
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from

http://ir.mondelezinternational.com/secfiling.cfm?filingID=1193125-‐14-‐

79175&CIK=1103982

The
Economics
of
the
Cookie
and
Cracker
Industry

17

12.
Rubin,
B.
F.
(2013,
November
19).
Mondelez
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tender
offer
for
$1.5

billion

in
debt.
The
wall
street
journal.
Retrieved
from

http://online.wsj.com/article/BT-‐CO-‐20131119-‐

704136.html?mod=WSJ_qtnews_wsjlatest

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T.
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2890351605848?mod=WSJ_qtoverview_wsjlatest&mg=reno64-‐wsj

Wall
Street
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inc.
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third
quarter
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November
7).
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wall
street
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2.
One
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american
leg
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where
we
are
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stadium
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by
nabisco.
(2013,
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26).
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street

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20).
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908720.html?mod=WSJ_qtoverview_prlatestdf

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13).
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18



5.
US
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Molson
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-‐2-‐.
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Wall
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716781.html?mod=WSJ_qtoverview_wsjlatest

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A

MDLZ
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(n.d.).
People
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people

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Woolford,
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(2013,
August
26).
Lance(R)
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to

School
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The
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Retrieved
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from



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