Milling & Baking News Corporate Profiles - October 2012 - (Page 104)

Company Overview Chief executive ofﬁcer – Kraft Foods Inc. Company looks forward to future post spin-off Irene Rosenfeld A s of Oct. 1, Kraft Foods Inc., as it formerly was named, ceased to exist. Spun off is an entity that company executives expect to deliver “steady and profitable top-line growth, consistent bottom-line growth and a superior dividend payout.” As part of the separation that took place in October, Kraft Foods Inc. spun off Kraft Foods Group, Inc., which will hold Kraft Foods’ North American grocery business. Following the spin-off, Kraft Foods Inc. was renamed Mondelez International, Inc. Featuring brands such as Kraft, Maxwell House, Oscar Mayer, Planters and Jell-O, Kraft Foods Group will be North America’s fourth-largest consumer packaged food and beverage company, with revenues of approximately $19 billion in 2011. Ten of the company’s brands achieved sales of $500 million or more in 2011, while an additional 17 brands posted sales of $100 million or more in 2011. Approximately 80% of Kraft Foods Group’s revenue comes from categories in which the company holds the No. 1 or No. 2 market position. Kraft Foods Group said future growth will be driven by a four-part strategic plan: making its people its competitive edge, executing with excellence, “turbocharging” its iconic brands and redefining efficiency. Meanwhile, Mondelez International plans to capitalize on its competitive advantages. Mondelez will include Kraft’s Nabisco business, which features such brands as Chips Ahoy!, Honey Maid, Oreo, SnackWells, Triscuits and Wheat Thins. “Mondelez International is a unique investment vehicle with several competitive advantages,” Irene Rosenfeld, chief executive officer, told analysts at the Barclays Back to School Conference held Sept. 6 in Boston. “They include leading positions in fast-growing categories; an advantaged geographic footprint; a portfolio of the world’s favorite snacks brands; an excellent new products pipeline with a proven track record of innovation; strong routes to market with significant barriers to entry; and world-class talent and capabilities.” Ms. Rosenfeld said Kraft loves snacks because they “offer very attractive growth prospects because they’re aligned with many key consumer trends.” She said Mondelez will have about $36 billion in revenue and about three quarters of sales will come from fastgrowing snacks categories — biscuits, chocolate, gum and candy. While Mondelez will be a global snacks business, North America is expected to play a critical role in driving top- and bottom-line growth. “In North America we expect to deliver solid growth with significant opportunities to improve margins,” Ms. Rosenfeld said. “While North America represents only about a fifth of our global sales, our business here will continue to be a top-ten food company, with about $7 billion in revenue. And with the spin-off of grocery, we will be a pure play in snacks.” On the transaction front, Kraft in late August sold a controlling stake in the Back to Nature brand food business to 2011 global sales — $54.4 billion Top brands – Cadbury Jacobs Kraft LU Maxwell House Milka Nabisco Oreo Oscar Mayer Philadelphia Tang Trident 104 \ October 2012 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 - October 2012

Milling & Baking News Corporate Profiles - October 2012