Thursday, November 7, 2013

Is Philly's Mondelez factory closing?

Many know the former Nabisco/Kraft factory on Roosevelt Boulevard by its cookie smell, or as the marker for the on-ramp to Interstate 95. And now its latest owner, Mondelez International, is reportedly taking the highway south - all the way to a new factory in Mexico.

As many as 300 workers may be laid off, the Oreo maker told employees yesterday in an emergency meeting, reports 6ABC.com. If true, that means Philadelphia brand cream cheese may soon be the only remnant of the city left in the company's holdings.

A call I placed to Mondelez officials this morning has yet to be returned.

Mondelez split from Kraft last year. The company has since found itself under pressure after stumbling in its first few quarters. Activist investor Nelson Peltz of Trian Fund Management has been pushing for PepsiCo to spin off its beverage business, then merge its remaining snack food business with Mondelez.

In a call with analysts Thursday, CEO Irene Rosenfeld largely blamed a double-digit sales decline in China business and on the country's broader economic slowdown.

Source: Philly.com

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