Kraft Foods Inc. (NYSE: KFT) today announced plans to change its corporate name to Mondelez International, Inc. Does this name sound silly? It does here, but you can decide for yourself at the end with the company’s explanation of the name.
Kraft Foods is dividing to create two public companies before the end of 2012. One is called “a high-growth global snacks business and a high-margin North American grocery business.”
The North American grocery company will become Kraft Foods Group, Inc., retaining the Kraft brand for its corporate identity and as the brand for many of its consumer products. The company noted that the global snacks company will require a new name when it launches later this year.
The company invited employees to suggest names for the new global snacks company and more than 1,000 employees participated with over 1,700 names submitted. Mondelez International was inspired by separate suggestions from two employees, one in Europe and another in North America.
Here is the explanation and will sound a bit like the old Altria name change from Philip Morris…. “Mondelez” is called “a newly coined word that evokes the idea of ‘delicious world.’ as “Monde” is from the Latin word for “world” and “delez” is a fanciful expression of “delicious.” In addition, “International” captures the global nature of the business. (Why do I keep thinking of the Menendez brothers?)
Kraft may be an international company, but Americans are probably going to have problems with the name in many cases when referring to the company. Our question is rather simple… After the split, will Kraft remain in the Dow Jones Industrial Average?
JON C. OGG