Milling & Baking News Corporate Profiles - November 2013 - (Page 108)

Company Overview Kraft Foods Group, Inc. Newly independent company defends market share, trademarks I n its first year as an independent company following the October 2012 spin-off from Mondelez International, Kraft Foods Group, Inc. was in defense mode - both in market share battles with "formidable foes" as well as in a pair of trademark disputes over cheese brands. Innovation is a "pillar" at the new Kraft, which said it's infusing its pipeline with flavor, convenience, simpler ingredient labels and customization. Additionally, the company is working to enhance nutrition and reduce sodium across portfolios and leverage the voice of the Hispanic consumer in early product development. In July, the Northfield, Ill.-based company reorganized its business structure with the creation to two units: Meals and Desserts, and Enhancers and Snack Nuts. Earnings during fiscal 2012 fell nearly 8% while sales eased 2%. Net income in the year ended Dec. 29, 2012, was $1.6 billion, equal to $2.77 per share on the common stock, down from $1.8 billion, or $3 per share, in fiscal 2011. Net revenues totaled $18,339 million, down from $18,655 million. The company was accused in a June lawsuit filed by Saputo Cheese USA Inc., the U.S. subsidiary of Montrealbased Saputo, Inc., of "unauthorized" use of the "Toppers" cheese trademark. Another trademark tiff this year involved preventing Cracker Barrel Old Country Store, Inc., from introducing several meat products to the retail marketplace under a licensing agreement with the John Morrell Food Group, a business unit of Smithfield Foods, Inc. In July, Kraft won a preliminary injunction in the case, after successfully arguing that the Cracker Barrel branded meats would infringe on its trademarked Cracker Barrel brand cheeses and that Cracker Barrel Old Country Store has promoted itself as Cracker Barrel in a prominent fashion and minimized its use of Old Country Store in the brand name. As for defending against competitors in key categories of macaroni and cheese, cold cuts and beverages, the company said during an Aug. 1 call with analysts it was "not yet firing on all cylinders in terms of brandbuilding, marketing and promotional programs." "And we are still not at share of voice, share of market, benchmark advertising levels, behind a number of our biggest brands," said Tony Vernon, chief executive officer, during the call. "We have more to do consistently across all our categories. But we are making progress." Mr. Vernon described the retail marketplace as a war zone, with "a lot of competitive Armageddon activity" in pour-able and spoon-able dressings and "a pitched battle" in cold cuts. Macaroni and cheese, what the company identified as "probably one of our most important franchises," has been losing grip against emerging competitors. "We have formidable foes, and some of the bigger players are getting into this with some of the entrants," Mr. Vernon said. "We'll continue to battle. . . . So I'm looking for some real category growth, and I think we'll defend ourselves nicely." CP Chief executive officer - Top brands - Tony Vernon Crystal Light Jell-O Kraft Kool-Aid MiO Oscar Mayer Philadelphia Velveeta 2012 net revenues - 108 \ November 2013 $18.3 billion Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013
Table of Contents
Editorial - Share price performance remains at odds with food industry financials
Grain-based Foods - Break-up of Hostess reverberates across several categories during 2013
Prepared Foods - Soup category simmers while frozen foods sales stay cool
Beverages - Caffeine buzz rushes through the category
Meat and Poultry - Tight beef supplies offer opportunities for competing proteins
Dairy - Milk production grows amid industry struggles
Confectionery - Segment in recovery, but new challenges beckon
Food service - Menu trends range from better-for-you to over-the-top
Gluten-free - Grain-based foods companies get on board growing trend
F.D.A. defines ‘gluten-free’
Company Overview - Aryzta AG
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Groupe Danone S.A.
Company Overview - Dean Foods Co.
Company Overview - Dunkin’ Brands Group, Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - Hain Celestial Group, Inc.
Company Overview - The H.J. Heinz Co.
Company Overview - The Hershey Co.
Company Overview - Hillshire Brands Co.
Company Overview - Hostess Brands L.L.C.
Company Overview - Kellogg Co.
Company Overview - Kraft Foods Group, Inc.
Company Overview - Mondelez International, Inc.
Company Overview - Nestle S.A.
Company Overview - Panera Bread Co.
Company Overview - PepsiCo, Inc.
Company Overview - Post Holdings, Inc.
Company Overview - Smithfield Foods, Inc.
Company Overview - The J.M. Smucker Co.
Company Overview - Snyder’s-Lance, Inc.
Company Overview - TreeHouse Foods, Inc.
Company Overview - Tyson Foods, Inc.
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Milling & Baking News Corporate Profiles - November 2013

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