From ketchup to hot drinks, family-run investment firms are shaking up the consumer deals market, squeezing out private equity players and forcing them to change strategy. Families, some of whom made their money from the consumer sector, have deep pockets and are looking to secure their wealth for future generations. They are willing to wait longer for returns, giving them the edge over private equity funds looking for a quick turnaround.Joh A Benckiser (JAB), the investment vehicle of the German billionaire Reimann family, bid for Douwe Egberts coffee last month, creating a hot drinks empire to take on the market leaders Nestle and Mondelez International, a goal that may take some time."Part of the reason for traditional private equity firms not being involved in the D.E. Master Blenders transaction was that the multiples were too high to make the returns work," said Magnus Scadden , Head of EMEA Consumer and Retail at Houlihan Lokey, an investment bank.Family-funded investments in the sector are expected to grow. In Europe this year 9 of the 51 newly minted billionaires have made their money through investments in the consumer sector, the Forbes Rich List calculated.
Mondelez International, Inc. (Mondelez International), is a snack manufacturing company. Shares of MDLZ traded higher by 0.65% or $0.2/share to $30.83. In the past year, the shares have traded as low as $24.50 and as high as $42.54. On average, 13301000 shares of MDLZ exchange hands on a given day and today's volume is recorded at 11166681.
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