Tag Archive | "Kraft Foods"

Kraft Foods Names New Board of Mondelez International


Kraft Foods has announced the composition of the board of directors for its global snacks company, Mondelez International, which has will be separated from the North American grocery business in October 2012. Irene Rosenfeld (pictured), currently head of Kraft Foods, will be Chairman and CEO of Mondelez International. Other board members are:

* Stephen Bollenbach, 70, served as Co-Chairman and Chief Executive Officer of Hilton Hotels Corporation from May 2004 until his retirement in October 2007, and served as President and CEO from February 1996 to May 2004.  Prior to that, he served as Senior Executive Vice President and Chief Financial Officer of The Walt Disney Company from September 1995 to February 1996. Bollenbach spent the previous 30 years in various financial leadership positions in the hospitality, real estate and financial services industries.

* Lewis Booth, CBE, 63, served as EVP and CFO of the Ford Motor Company from November 2008 until his retirement in April 2012. He was EVP, Ford of Europe, Volvo Car Corporation and Ford Export Operations and Global Growth Initiatives and EVP of Ford’s Premier Automotive Group, from 2005 to 2008.  Prior to that, Booth held various executive leadership positions with Ford, including as Chairman and Chief Executive of Ford of Europe, President of Mazda Motor Corporation and President of Ford Asia Pacific and Africa Operations.  He was employed continuously by the Ford Motor Company in positions of increasing responsibility since 1978.

* Lois Juliber, 63, Kraft Foods Inc. director since 2007, served as a Vice Chairman of the Colgate-Palmolive Company from July 2004 until April 2005. She served as Colgate-Palmolive’s Chief Operating Officer from March 2000 to July 2004, EVP – North America and Europe from 1997 until March 2000 and President of Colgate North America from 1994 to 1997. Prior to joining Colgate-Palmolive, Juliber spent 15 years at General Foods Corporation, in a variety of key marketing and general management positions.

* Mark Ketchum, 62, Kraft Foods Inc. director since 2007 and Lead Director since 2009, served as President and CEO of Newell Rubbermaid Inc. from October 2005 to June 2011 and was a member of its board of directors from November 2004 to May 2012. From 1999 to 2004, Ketchum was President, Global Baby and Family Care of The Procter & Gamble Company. Ketchum joined P&G in 1971, where he served in a variety of roles, including VP and General Manager – Tissue/Towel from 1990 to 1996 and President–North American Paper Sector from 1996 to 1999.

* Jorge Mesquita, 50, Kraft Foods Inc. director since May 2012, has been employed continuously by P&G in various marketing and leadership capacities since 1984. He has served as Group President – New Business Creation and Innovation since March 2012.  He was Group President, Global Fabric Care from 2007 to 2011 and President, Global Home Care from 2001 to 2007, also serving as President of Commercial Products and President of P&G Professional from 2006 to 2007.

* Fredric Reynolds, 61, Kraft Foods Inc. director since 2007, served as EVP and CFO of CBS Corporation from January 2006 until his retirement in August 2009. From 2001 until 2006, Reynolds served as President and CEO of Viacom Television Stations Group and EVP and CFO of the businesses that comprised Viacom Inc. He also served as EVP and CFO of CBS Corporation and its predecessor, Westinghouse Electric Corporation, from 1994 to 2000. Prior to that, Reynolds served in various capacities with PepsiCo, Inc. for 12 years, including CFO at Pizza Hut, Pepsi Cola International, Kentucky Fried Chicken Worldwide and Frito-Lay.

* Ruth Simmons, 67, is President Emerita of Brown University and Professor of Comparative Literature and Africana Studies since 2001. Prior to that, Simmons served as President,SmithCollegefrom 1995 to 2001 and Vice Provost of Princeton University from 1991 to 1995. She served in various administrative positions at colleges and universities since 1977, including the University of Southern California from 1979 to 1983, Princeton University from 1983 to 1989 (and again from 1991 to 1995) and Spelman College from 1989 to 1991.

* Jean-Francois van Boxmeer, 50, Kraft Foods Inc. director since 2010. Van Boxmeer has been Chairman of the Executive Board and CEO of Heineken N.V. since 2005 and a member of its Executive Board since 2001. He has been employed continuously by Heineken in various capacities since 1984, including as General Manager of Heineken Italia from 2000 to 2001.

Posted in NewsComments Off on Kraft Foods Names New Board of Mondelez International

Mondelez International is New Name For Kraft’s Global Snacks Business


Kraft Foods’ high-growth global snacks business, which will be separated from its North American grocery business later in the year, will be called Modelez International. The North American grocery company will become Kraft Foods Group, retaining the Kraft brand for its corporate identity and as the brand for many of its consumer products. As a result, the global snacks company will require a new name when it launches later this year.

Mondelez is a newly coined word that means ‘delicious world’. It is a combination of the word monde, deriving from the Latin word for world, and delez, a fanciful expression of delicious. In addition, International captures the global nature of the business. Mondelez International will become a $35-billion business with 80% of its sales outside North Americawhen it comes into being before the end of 2012.

“The Kraft brand is a perfect fit for the North American grocery business and gives it a wonderful platform on which to build an exciting future,” said chairman and chief executive Irene Rosenfeld. “For the new global snacks company, we wanted to find a new name that could serve as an umbrella for our iconic brands, reinforce the truly global nature of this business and build on our higher purpose – to ‘make today delicious.’ Mondelez perfectly captures the idea of a ‘delicious world’ and will serve as a solid foundation for the strong relationships we want to create with our consumers, customers, employees and shareholders.”

Last year, Kraft Foods invited employees from around the world to suggest names for the new global snacks company. As part of this co-creation process, more than 1,000 employees participated, submitting more than 1,700 names for consideration. Mondelez International was inspired by separate suggestions from two employees, one in Europe and another in North America.

Posted in NewsComments Off on Mondelez International is New Name For Kraft’s Global Snacks Business

Kraft Foods Investing £17 Million in UK R&D


Kraft Foods in investing £17 million to further develop its research and development capabilities in the UK, including the recently opened Centre of Excellence for Chocolate at the former Cadbury head quarters at Bournville near Birmingham. Incorporating new innovation labs, a new pilot plant facility and a collaboration kitchen, the new centre will be used to develop Cadbury products but also innovations for Kraft Foods’ other chocolate confectionery brands such as Milka and Toblerone.

Kraft Foods is also expanding and refurbishing its research facilities atReading, the group’s largest science centre outside the US.

“These openings are really exciting news for Kraft in the UK and Ireland, placing our world-class R&D operations and employees at the centre of a global network,” says Nick Bunker, president of Kraft Foods UK/Ireland.

Posted in NewsComments Off on Kraft Foods Investing £17 Million in UK R&D

Kraft Foods Cuts Manufacturing Waste


Kraft Foods is making steady progress in reducing the amount of manufacturing waste produced and consequently its environmental impact. The global food and beverages producer now has 36 facilities in 13 countries sending zero waste to landfills, including 24 plants in Europe and 12 facilities in North America, and has cut its manufacturing waste by 50% since 2005. Furthermore, the group now recycles or reuses about 90% of its manufacturing waste.

“We’re waging war on waste, one plant at a time,” says Christine McGrath, vice president, Global Sustainability. “Our strategy is simple: generate less waste and find new uses for the waste we do produce.  And our employees are doing just that.”

For Kraft Foods, manufacturing accounts for the vast majority of its solid waste output, so its plants are a natural place to take action. In 2007, the company launched a program with the global recycling company Sonoco Recycling, using its Sonoco Sustainability Solutions (S3) service offering to substantially reduce waste in plants with the ultimate objective of sending zero waste to landfill.

Posted in Environment, NewsComments Off on Kraft Foods Cuts Manufacturing Waste

Kraft Foods Combines Philadelphia and Cadbury


Kraft Foods has combined two of its biggest brands to launch a new product in its range –Philadelphia with Cadbury combination, a fresh tasting, light textured chocolate spread which has half the fat and less sugar than other chocolate spreads. Philadelphia with Cadbury is designed to offer Philadelphia new growth opportunities outside its traditional cheese spread category. The move builds on Philadelphia successfully expanding its use from a simple cheese spread to a cooking ingredient. Philadelphia with Cadbury will be supported by a £3.2 million marketing campaign in the UK.

The launch of Philadelphia with Cadbury follows the successful introduction of Philadelphia with Milka in other countries. In October 2010,Philadelphia with Milka hit the shelves in Germany, and has grown to become a Eur22.2 million brand (retail sales) establishing a 3.6% value share of the cream cheese market and a 6.6% value share of the chocolate spread market. The cheese and chocolate combination is also due to be launched in Spain, Belgium, Netherlands, Nordics and Luxembourg in 2012.

Philadelphia with Cadbury is Kraft Foods’ biggest cross category innovation since its integration with the Cadbury business, and brings together two of Kraft’s biggest household brands in order to create a completely new tasting snack for consumers.

Kraft Foods has twelve iconic brands – Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Tang and Trident – that each generates revenue of more than $1 billion annually.

Kraft Foods is in the process of dividing its business to create two independent public companies – a high-growth global snacks business and a high-margin North American grocery business. The transaction will take at least 12 months to complete.

Posted in NewsComments Off on Kraft Foods Combines Philadelphia and Cadbury

Kraft Foods and SodaStream Enter Strategic Co-branding Deal


Kraft Foods and SodaStream International have formed a strategic partnership for the manufacturing, marketing, distribution and sale of Kraft Foods branded flavours for use with the SodaStream soda making system. This will be the first time that Kraft Foods flavours will be available specifically for use in a carbonated beverage.

SodaStream manufactures beverage carbonation systems, which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. SodaStream products are available at more than 50,000 retail stores in 42 countries around the world.

The initial Kraft Foods brands to participate will be several varieties of Crystal Light, a leading women’s diet beverage, and Country Time, a lemonade brand. One of the new carbonated choices will include an ‘All-Natural’ lemonade. The terms of the deal were not disclosed.

“The carbonated market is an exciting segment for us,” says Doug Weekes, vice president, beverages of Kraft Foods. “We’re delighted to be working with SodaStream to help bring these terrific brands to consumers who prefer their beverages carbonated. It’s a perfect marriage of our iconic brands and SodaStream’s breakthrough technology.”

“We are excited to welcome these delicious Kraft drink mixes into our SodaStream portfolio,” says Daniel Birnbaum, chief executive of SodaStream. “Adding our sparkle to these popular flavors should attract a new audience to both Kraft and SodaStream, and increase awareness of the soda making category.” The companies plan to have the products available during the second quarter of 2012.

Posted in NewsComments Off on Kraft Foods and SodaStream Enter Strategic Co-branding Deal

R&R Ice Cream Links With Kraft Foods


R&R Ice Cream, Europe’s largest own label ice cream manufacturer, is joining forces with Kraft Foods to bring confectionery innovation to ice cream markets across mainland Europe. In co-operation with Kraft Foods, R&R will initially develop, manufacture and distribute an indulgent ice cream range of five iconic Kraft brands – Milka, Toblerone, Daim, Oreo and Philadelphia – across ten European markets – Germany, Austria, Switzerland, France, Italy, Spain, Portugal, Netherlands, Belgium and Luxembourg. The first products will hit the shelves in Spring 2012 and are likely to appear in an individual serve ice cream format similar to R&R’s Nestle Potz range, which has proved so successful in the UK.

 

“We believe this venture could achieve additional sales of some Eur100 million for Kraft branded products within five years,” says James Lambert, chief executive and executive chairman of R&R Ice Cream. “It gives us a world-leading food brand across much of Western Europe and further enhances our reputation as a one-stop shop for both branded and own label ice cream products. I fully expect the Kraft deal to transform the European business in much the same way as the 2001 acquisition of the Nestle Ice Cream business changed our UK operations.”

 

He continues: “R&R is in great shape for 2012. The surplus cash from last November’s Eur350 million bond will be fully invested by early next year resulting in significantly increased EBITDA and free cash flows. Our cash flow generation will also enable us to further pursue our strategy of consolidating the European ice cream market and investing in our factories to reduce costs and increase innovation for customers and consumers.”

Posted in NewsComments Off on R&R Ice Cream Links With Kraft Foods

Kraft Foods to Restructure UK Confectionery Operations


Kraft Foods plans to invest £50 million in its UK confectionery manufacturing operations while cutting the workforce by 200 people. The 200 jobs will be shed at Kraft’s sites at Bournville, Birmingham, Chirk in Wrexham, north Wales, and Marlbrook in Herefordshire. The cuts will be made through redeployment and voluntary redundancies over two years from March 2012.

 

Kraft will invest £6 million in a new biscuits line at its site in Sheffield, which produces sugar confectionery products such as Trebor, Maynards and Bassetts, to facilitate the manufacture of Oreo and BelVita biscuits in the UK for the first time.

 

The remaining investment will be made on a range of projects to upgrade infrastructure, speed up production, reduce waste and improve energy efficiency at three chocolate confectionery manufacturing sites. This includes £13.5 million at Bournville, £3.4 million at Chirk and £2.6 million at Marlbrook.

 

“The ambition is for Bournville, Chirk and Marlbrook to remain at the centre of British food manufacturing and of the Kraft Foods network,” says Neil Chapman, Kraft’s manufacturing director, UK chocolate. “We continue to invest in our people and facilities, so we can increase productivity and transform our business.”

Posted in NewsComments Off on Kraft Foods to Restructure UK Confectionery Operations

Irene Rosenfeld to Lead Kraft’s Global Snacks Company


In the next step toward dividing into two public companies, Kraft Foods has announced the appointments of the heads of the future global snacks and North American grocery businesses. Irene Rosenfeld (pictured), currently chairman and chief executive of Kraft Foods, will be chairman and chief executive of the global snacks company, which will have $31 billion in estimated revenue and a significant presence in numerous fast-growing, international markets.

 

Anthony Vernon, currently executive vice president and president of Kraft Foods North America, will become chief executive of the $17 billion North American grocery company. Kraft Foods expects to complete the spin-off by the end of 2012.

 

As chief executive of Kraft Foods since 2006 and chairman since 2007, Irene Rosenfeld has led Kraft Foods’ transformation. She has thirty years of accomplishments in the food and beverage industry. These include integrating Nabisco; leading Kraft Foods through its spin-off from Altria to emerge as a strong, independent company; and devising strategies that included the transformative LU and Cadbury acquisitions.

Posted in NewsComments Off on Irene Rosenfeld to Lead Kraft’s Global Snacks Company

Kraft Foods to Invest $100 Million to Expand in Russia


Kraft Foods plans to invest $100 million to more than double the capacity of its coffee production plant at Gorelovo in the Leningrad region of Russia. Kraft Foods, which owns the Jacobs and Maxwell House brands, is the second biggest player in the expanding Russian coffee market with a share of 19%, behind Nestle with 28%.

 

The investment will increase annual coffee production at Gorelovo to 16,900 tonnes in 2013 and to 23,000 tonnes by 2015, from a current level of 10,500 tonnes. Kraft Foods has already invested in excess of $150 million in developing the factory to date.

Posted in NewsComments Off on Kraft Foods to Invest $100 Million to Expand in Russia

Kraft Foods Chief is the Most Powerful Woman in Business


Irene Rosenfeld (pictured), chairman and chief executive of Kraft Foods, has overtaken Indra Nooyi, to top Fortune Magazine’s annual ranking of the ‘50 Most Powerful Women in Business’. In second position in 2010, Irene Rosenfeld made the headlines this year with her decision to split Kraft Foods into two companies.

 

Indra Nooyi has continued to develop PepsiCo’s nutritional products portfolio with the aim of growing it into a $30 billion business by 2020. However, she has been critised for losing ground to arch rival Coca-Cola in the North American soft drinks market.

 

Patricia Woertz, chairman, chief executive and president of Archer Daniels Midland is third in the listing. Denise Morrison, the new president and chief executive of Campbell Soup, is ranked 21st.

Posted in NewsComments Off on Kraft Foods Chief is the Most Powerful Woman in Business

Kraft Foods to Open Biscuit Factory in Ukraine


Kraft Foods is investing $36 million to build a biscuit factory in Ukraine. Based at Trostyanets, in central Ukraine, the new facility is due to commence operations in the fourth quarter of this year.

 

Kraft Foods already has two factories in Ukraine. Its plant at Trostyanets produces chocolate and coffee, while its facility at Stari Petrivtsi manufactures potato chips.

Posted in NewsComments Off on Kraft Foods to Open Biscuit Factory in Ukraine

Kraft Foods to Split into Two Businesses


Kraft Foods intends to spin-off of its North American grocery business to shareholders. The move will create two independent public companies – a high-growth global snacks business with estimated revenue of about $32 billion and a high-margin North American grocery business with estimated revenue of approximately $16 billion. The target is to launch the new companies before year-end 2012.

 

Over the last several years, Kraft Foods has transformed its portfolio by expanding geographically and by building its presence in the fast-growing snacking category. A series of strategic acquisitions, notably of LU biscuit from Danone and of Cadbury, together with the strong organic growth of its ‘power brands’, have made Kraft Foods the world’s leading snacks company. At the same time, the company has continued to invest in product quality, marketing and innovation behind its iconic North American brands, while implementing a series of cost management initiatives.

 

Having successfully executed its transformation plan, and 18 months into the Cadbury integration, the company has, in fact, built a global snacking platform and a North American grocery business that now differ in their future strategic priorities, growth profiles and operational focus.

 

Kraft Foods’ snacks business is focused largely on capitalising on global consumer snacking trends, building its strength in fast-growing developing markets and in instant consumption channels. The North American grocery business is investing to grow revenue in line with its categories in traditional grocery channels through product innovation and world-class marketing, while driving superior margins and cash flows.

 

Irene Rosenfeld, chairman and chief executive of Kraft Foods.

Chairman and chief executive Irene Rosenfeld explains: “We have built two strong, but distinct, portfolios. Our strategic actions have put us in a position to create two great companies, each with the leadership, resources and strong market positions to realize their full potential. The next phase of our development recognizes the distinct priorities within our portfolio. The global snacks business has tremendous opportunities for growth as consumer demand for snacks increases around the world. The North American grocery business has a remarkable set of iconic brands, industry-leading margins, and the clear ability to generate significant cash flow.”

 

Global snacks will consist of the current Kraft Foods Europe and Developing Markets units as well as the North American snacks and confectionery businesses. As an independent company, global snacks would have estimated revenues of approximately $32 billion and a strong growth profile across numerous fast-growing, attractive markets. Approximately 75 percent of revenues would be from snacks around the world, and approximately 42 percent would come from developing markets, including a diversified presence in numerous highly attractive emerging markets. The business would have a strong presence in the fast-growing and high-margin instant consumption channel. The non-snacks portion of the portfolio would consist primarily of powdered beverages and coffee, which have a strong growth and margin profile in developing markets andEurope. Key brands would include Oreo and LU biscuits, Cadbury and Milka chocolates, Trident gum, Jacobs coffee,and Tang powdered beverages.

 

The North American grocery business would consist of the current US Beverages, Cheese, Convenient Meals and Grocery segments and the non-snack categories inCanadaand Food Service. With approximately $16 billion in estimated revenue, this business would be one of the largest food and beverage companies inNorth America. Its portfolio would include many of the most popular food brands on the continent, with leadership positions in virtually every category in which it competes. ey brands would include Kraft macaroni and cheese, Oscar Mayer meats, Philadelphiacream cheese, Maxwell House coffee,CapriSun beverages, Jell-O desserts and Miracle Whip salad dressing.

Posted in NewsComments Off on Kraft Foods to Split into Two Businesses

UK Food and Grocery Industry Recovers 115,000 Tonnes of Waste


Participants in a scheme run by ECR (Efficient Consumer Response) UK are well on the way to achieving targets set last autumn to prevent and recover waste in the FMCG supply chain in the UK. By thinking differently about waste when looking at products, packaging design, range and forecasting, consumer goods manufacturers and retailers have prevented 38,000 tonnes of waste from being created in the first place and redirected a further 115,000 tonnes away from landfill and sewer.

In total, 33 leading food and grocery companies announced last autumn they are voluntarily committing to prevent 75,000 tonnes of waste being created by the end of 2012. All signatories are IGD members and leading retailers, manufacturers, wholesalers or food service operators. They have signed up to the target to totally remove this volume of waste from their supply chains.

Joanne Denney-Finch, chief executive of IGD.

The industry has made great strides in recovering waste, rather than disposing of it. To drive this progress even further the companies have pledged to meet an extra target. They have challenged themselves to divert a further 150,000 tonnes of waste from disposal, mainly from landfill and sewerage, to more productive outputs such as anaerobic digestion.

The food and drink manufacturers participating in the scheme include ABF, Bakkavor Group, Coca-Cola Enterprises, Dairy Crest, Gerber Juice Company, H J Heinz, Kraft Foods, Mars Chocolate UK, Molson Coors Brewing Company (UK), Muller Dairy (UK),

Nestle UK, Northern Foods, PepsiCo UK & Ireland, Robert Wiseman Dairies, Unilever UK, United Biscuits, VION Food UK and Warburtons.

“Food and grocery businesses are constantly striving to reduce waste from their operations and the majority of the supply chain’s product and packaging waste is now recycled or recovered, rather than disposed of,” points out Joanne Denney-Finch, chief executive of IGD. “IGD has brought the industry together to draw up, commit to and deliver these challenging targets – and the industry is making great progress.”

Posted in Environment, NewsComments Off on UK Food and Grocery Industry Recovers 115,000 Tonnes of Waste

More UK Food and Drink Companies Commit to Reduce Environmental Impact


Associated British Foods, Coca-Cola Enterprises, Kraft Foods and Premier Foods are among the major UK food and drink companies to sign up to the second phase of the Courtauld Commitment, launched in 2010.

The Courtauld Commitment is a voluntary agreement run by waste advisory body WRAP (Waste & Resources Action Programme) and helps businesses to improve their overall performances and reduce their environmental impact.

Signatories to the second phase of the Courtauld Commitment are supporting three sector targets associated with food waste and packaging across the UK grocery retail supply chain.

“Building a sustainable business is not only about protecting the environment. With it comes a leaner, more efficient business which strips out waste and saves money. The voluntary approach allows industry sectors to move as one and deliver change without government intervention,” points out Liz Goodwin, chief executive of WRAP. “Responsibility deals stimulate businesses to come up with their own ways to solve problems, giving them far greater flexibility and avoiding potentially onerous regulations.”

Other companies to join the Courtauld Commitment since July 2010 are: AB InBev UK, Cafedirect, Concha y Toro, Cott Beverages, Findus Group, Kraft Foods UK, Miller Brands (UK), Kimberley Clark UK and P & G UK & Ireland.

Posted in NewsComments Off on More UK Food and Drink Companies Commit to Reduce Environmental Impact

Management Buyout Speculation at Green & Black’s


Management at Green & Black’s, the UK-based organic chocolate manufacturer, are reported to be seeking a buy-out of the business from owner Kraft Foods. The US food group acquired Green & Black as part of its £11.7b takeover of Cadbury last year.

Founded by entrepreneur Craig Sams in 1991, Green & Black’s was sold to Cadbury for £20m in 2005. Green & Black’s has an annual turnover of about £40m compared to Kraft’s UK chocolate sales of £1b.

However, in response to media speculation, Kraft Foods has said that it has no current plans to sell Green & Black’s. “Here in Europe, we will continue to invest behind growing and optimising the entire chocolate portfolio,” says Michael Clarke, president of Kraft Foods Europe.

Posted in NewsComments Off on Management Buyout Speculation at Green & Black’s

Hershey to Accelerate Growth in Europe


North American chocolate confectionery manufacturer Hershey is stepping up its growth in Europe as part of its strategy to reduce its reliance on its domestic market by developing internationally, especially in emerging markets such as Asia and Latin America. The UK’s second largest retailer, Asda, will commence selling Hershey products next year and the American confectionery group has now established a European subsidiary, located in London.

Last year, only 14% of Hershey’s total turnover of $5.3b was generated outside of North America. Hershey was linked to a possible bid for Cadbury, which would have helped to internationalise its business, but lost out to Kraft Foods.

Posted in NewsComments Off on Hershey to Accelerate Growth in Europe

Dairy Snacks Market Driven by Health and Convenience


The international market for dairy snacks, such as cheese strings and yogurt tubes, grew by 7% in 2009 and is heading for a 6% rise this year. The first major study on this sector, by leading food and drink consultancy Zenith International, estimates total volume at 217,000 tonnes in 2010 across 26 countries in North America, Latin America, West Europe, East Europe, Africa, the Middle East and Asia Pacific.

Currently, the majority of dairy snack products are cheese-based and targeted at children. In some countries, however, manufacturers are increasingly looking at innovations for adults. Although many dairy snacks are designed to be eaten on the move, some recent launches have been designed for at-home snacking, reflecting continuing changes in consumer eating habits.

Of the total dairy snack volume identified in 2009, the US accounted for almost two-thirds. The UK was the second largest market, with other key countries including France, Canada, Germany and Japan. The most developed regions are North America, West Europe and Australasia, with Latin America and East Europe presenting the next opportunities for companies to be first to market.

The most successful dairy snack products have come from leading international players in the overall dairy market, who command brand recognition and marketing power. Key players and brands include Bel with Mini Babybel, Kraft with Dairylea, and Yoplait yogurt tubes. In countries where dairy snacks have been available for longer and are more established, retailer private labels have been introduced, but these have yet to make a material impact.

“Dairy snacks, although a relatively recent phenomenon, have firmly established themselves as an important segment within both the dairy market and the wider market for snacks,” comments Zenith market analyst Laura Knight. “As modern on-the-go lifestyles have left consumers time poor, many people are increasingly looking for a convenient snack that delivers on health and nutrition, also one that tastes good and provides a pleasurable eating experience. Dairy snacks are well placed to meet these consumer demands and manufacturers have begun to capitalise on the opportunity this presents.”

Although dairy snacks are undeveloped as a snack segment, compared to more traditional snacking foods such as crisps and bars, it is clear that there is considerable long term potential for the market and Zenith expects the market to reach over 260,000 tonnes by 2014.

Posted in NewsComments Off on Dairy Snacks Market Driven by Health and Convenience

Kraft Foods Looks to Reduce Tax Bill With Cadbury Move


Kraft Foods plans to move part of its recently acquired Cadbury business to its European headquarters in Zurich, Switzerland in order to reduce its corporation tax exposure. Since 2006 Kraft Foods has been implementing a European model involving a (holding) company based in Zurich together with local companies in country markets.

Cadbury, which was acquired for $18.4b earlier this year, is now being integrated into this model. This involves the transfer of certain roles to Switzerland, though the majority of UK-based roles will remain in Britain.

Corporation tax on Kraft’s Zurich-based business starts at 15% compared to the much higher rate of 28% in the UK. Foreign holding companies based in Zurich can be exempt from tax on non-Swiss earnings and can also apply for ‘mixed company tax privilege’ to gain lower rates.

Posted in NewsComments Off on Kraft Foods Looks to Reduce Tax Bill With Cadbury Move

UK Industry Responds as One in Three Shoppers Want Waste Reduction Prioritised


Nearly a third of UK shoppers want food and grocery retailers and manufacturers to focus on reducing waste. IGD consumer research shows 29% of shoppers think reducing waste should be one of the main sustainability priorities for the industry.

The findings come as 33 leading food and grocery companies have announced they are voluntarily committing to prevent 75,000 tonnes of waste being created by the end of 2012. All signatories are IGD members and leading retailers, manufacturers, wholesalers and food service operators. They have signed up to the target to totally remove this volume of waste from their supply chains.

The industry has made great strides in recovering waste, rather than disposing of it. To drive this progress even further the companies have pledged to meet an extra target. They have challenged themselves to divert a further 150,000 tonnes of waste from disposal, mainly from landfill and sewerage, to more productive outputs such as anaerobic digestion.

Joanne Denney-Finch, chief executive of IGD.

“Food and grocery businesses are striving continually to reduce waste from their operations. This has resulted in the majority of the product and packaging waste from their supply chain being recycled or recovered, rather than disposed of,” says Joanne Denney-Finch, chief executive of IGD. “The industry is now strengthening further its emphasis on supply chain waste prevention. This includes not producing the waste in the first place or redistributing it to alternative markets and charities, such as Fareshare.”

IGD members which have signed up to the two waste targets include: Associated British Foods, Bakkavor, Coca-Cola Enterprises, Dairy Crest, Gerber Juice Company, H J Heinz, Kraft Foods, Mars Chocolate UK, Molson Coors Brewing, Muller Dairy (UK), Nestle UK, Northern Foods, PepsiCo UK & Ireland, Robert Wiseman Dairies, Unilever UK, United Biscuits, VION Food UK and Warburtons.

Posted in NewsComments Off on UK Industry Responds as One in Three Shoppers Want Waste Reduction Prioritised

Lotte Group to Invest €200 Million to Expand Wedel


Tokyo-based Lotte Group is reported to be investing in the region of Eur200m to expand and diversify its Wedel confectionery business in Poland. The expansion programme entails the construction of five new factories, including an initial investment of Eur70m.

Lotte Group acquired the Wedel branded chocolate and sugar confectionery operations in Poland last June from Kraft Foods for an undisclosed sum. The deal marked Lotte’s entry into the European food market. The sale followed the European Commission’s decision to approve Kraft Foods’ acquisition of Cadbury conditional on the disposal of the Cadbury Wedel business in Poland and the Cadbury chocolate confectionery and soft-cake business in Romania.

Lotte Group is a multinational conglomerate with annual sales of Yen3,547b ($40b). Founded in 1948 as a chewing gum company, it currently operates in a variety of sectors, including food and confectionery, retail, travel and tourism, industrial chemicals and construction, and finance. As the original business, confectionery is at the core of the Lotte Group’s operations.

Lotte Group’s confectionery portfolio includes many well-known Asian brands, such as Xylitol, Koala March and Ghana. Lotte Group is the largest chewing gum manufacturer in Asia and third largest in the world.

Posted in NewsComments Off on Lotte Group to Invest €200 Million to Expand Wedel

Strong Annual Results From Barry Callebaut


Switzerland-based Barry Callebaut, the world’s leading manufacturer of high-quality cocoa and chocolate products, reported strong results for its 2009/10 financial year, ended August 31st last. With a sales volume growth of 7.6%, Barry Callebaut significantly outperformed the global chocolate confectionery market which was basically flat at a growth rate of 0.3%.

All regions contributed to this growth. It was particularly strong in those regions where Barry Callebaut had made major investments in the past years – Americas (+15.6%), Asia-Pacific (+15.5%) and Eastern Europe (+11.1%). In terms of product groups, the group’s gourmet & specialties products business managed to accelerate its already fast growth pace, recording a sales volume increase of 17.3%.

However, the strong Swiss franc had an unfavorable impact on sales revenue, operational profit (EBIT) and net profit. In local currencies, sales revenue grew strongly by 11.3% (+6.8% in SFr) and reached SFr5.21b (Eur3.86b), driven by a higher sales volume and higher average raw material prices.

Juergen Steinemann, chief executive of Barry Callebaut.

Further operational efficiency gains, an improved capacity utilisation as well as tight cost management programmes could more than compensate for the anticipated unfavourable combined cocoa ratio, the adverse currency translation effect and fewer one-off gains than in the prior-year period. Operating profit (EBIT) growth in local currencies was 7.9%; in SFr, the increase was 5.6%, up to SFr370.4m. As a result of lower financing costs, net profit grew even faster than EBIT; rising to SFr251.7m – an increase of 13.5% in local currencies and 10% in SFr.

“We have managed to deliver top results. Market conditions were challenging with a still rather fragile world economy, a flat global chocolate market, high raw material prices and important currency fluctuations. Our growth strategy based on the three pillars of expansion, innovation and cost leadership, together with our robust business model, have allowed us to cope well with all these market challenges,” says Juergen Steinemann, chief executive of Barry Callebaut. “The main highlights of the past fiscal year were the successful negotiations of a major long-term global supply agreement with Kraft Foods signed in early September 2010, confirming the trend towards outsourcing and strategic partnerships; the opening of our chocolate factory in Brazil, the first one we have in South America; and the gratifying results of our increased focus on our gourmet & specialties business”

Posted in NewsComments Off on Strong Annual Results From Barry Callebaut

Kraft Foods Opens $14 Million Sugar Confectionery R&D Centre in Europe


Kraft Foods has opened a European Gum and Candy Research & Development Centre at Eysins in Switzerland. The $14m state-of-the-art facility will focus on innovation and new product development for many of Kraft Foods’ confectionery brands, including the world’s leading gum brand Trident and the world’s leading candy brand Halls, as well as other brands like Bassetts, Carambar, The Natural Confectionery Co, Trebor and V6.

Worth $23 billion annually, the global gum market has grown by almost a quarter since 2005, and is one of the fastest-growing categories within confectionery. Kraft Foods has a number of gum brands with leading positions in markets across Europe, such as Hollywood in France, Trident in Spain, Greece and Portugal, and Stimorol in Denmark and Switzerland.

The new centre will be home to a team of product and package developers and quality experts who are responsible for breakthrough gum and candy innovation, such as the new Fresh & Clean gum product which is currently launching in markets across Europe. As the European Centre for innovation and technology for gum and candy, the team based in Eysins will collaborate closely with the Kraft Foods Global Gum & Candy Centre of Excellence, based in New Jersey in the US, to drive innovation and new technologies that support the company’s European gum and candy business and global category growth platforms.

The Center in Eysins joins 14 other Kraft Foods R&D Centres supporting the company’s global businesses including beverages, biscuits, cheese, chocolate, coffee and gum and candy.

Posted in NewsComments Off on Kraft Foods Opens $14 Million Sugar Confectionery R&D Centre in Europe

Cadbury Helps Kraft to Hit Sweet Spot


Kraft Foods has just outlined its new global development strategy and expects to deliver organic revenue growth of 5% or more, margins in the mid- to high-teens and earnings per share (EPS) growth of 9% to 11%. Following its $18.4b acquisition of Cadbury earlier this year, Kraft Foods became the undisputed world leader in snacks, a high-growth, high-margin category that now accounts for more than half of the group’s total revenue.

The enlarged Kraft Foods has an exceptional portfolio of global snacks power brands – led by Milka and Cadbury chocolates, Oreo and LU biscuits and Trident gum – with leading market shares in every major region, a full pipeline of innovation and a clear opportunity to grow its presence in what Kraft describes as the point-of-purchase ‘hot zone’.

Complementing the US-based food giant’s snacks portfolio are well-loved iconic regional and local brands in the beverage, grocery, cheese and convenient meals categories. Roughly 80% of these ‘heritage’ brands hold number one or number two positions in their respective categories and are household names among consumers who tend to be extremely brand-loyal. They also carry high margins and generate strong cash flow.

Irene Rosenfeld, chairman and chief executive of Kraft Foods.

“Today’s Kraft Foods is a global snacks powerhouse with an unrivaled portfolio of leading regional and local brands,” points out Irene Rosenfeld, chairman and chief executive of Kraft Foods. “This unique and complementary combination, together with our significant presence in high-growth developing markets, will deliver consistent growth in the top tier of our peer group.”

The combination of Kraft Foods and Cadbury provides the scale necessary to grow sales and distribution in new and existing markets, delivering a projected $1b in incremental revenue synergies. Kraft also expects to realise $750m of cost savings from integrating Cadbury by 2013.

More than half of Kraft Foods’ revenue now comes from markets outside of North America, such as Brazil, China, India and Mexico, where GDP and demand growth are strongest. Accordingly, by 2013, the proportion of business in developing markets will increase from a quarter of total revenue to roughly one-third.

Additional savings over the next three years from procurement, manufacturing and logistics will drive productivity gains in excess of 4% of cost of goods sold, according to Kraft Foods. These productivity gains, combined with flat overhead growth and pricing to offset input costs, will contribute to the expansion of gross margin.

“At Kraft Foods, we’re hitting our sweet spot,” she adds. “We’ve built a solid foundation for growth. By leveraging our scale, making strategic investments in marketing, sales and innovation and establishing a world-class cost structure, we will take our performance to the next level.”

Posted in NewsComments Off on Cadbury Helps Kraft to Hit Sweet Spot

Estrella Maarud Joins Savoury Snacks Industry Pledge


Estrella Maarud, a leading, Norwegian-owned manufacturer of savoury snacks for the Nordic and Baltic markets, has decided to join the advertising pledge recently launched by the European Snacks Association (ESA). In April, ESA announced its support for the EU Pledge, whereby member companies are committed to changing food and beverage advertising on TV, print and internet to children under the age of 12 in the European Union.

The EU Pledge programme is a voluntary commitment to the EU Platform for Action on Diet, Physical Activity and Health, the multi-stakeholder forum set up by the European Commission in 2005 to encourage interested parties to take initiatives aimed at fighting obesity in Europe.

In April, the following ESA member companies signed the ESA Pledge agreement which enters into force on 1st January 2011: Intersnack, Lorenz Snack-World, Procter & Gamble, Unichips and Zweifel Pomy-Chip. Two ESA member companies, LU Snack Foods (Kraft) and PepsiCo, are already members of the EU Pledge Group. These companies represent the bulk of advertising expenditure in the European savoury snacks market.

Posted in NewsComments Off on Estrella Maarud Joins Savoury Snacks Industry Pledge

Barry Callebaut to Expand Production Capacity After Global Supply Agreement With Kraft


Barry Callebaut, the world’s largest manufacturer of cocoa and chocolate products, and Kraft Foods, the world’s second largest food company and a global leader in confectionery, have signed a long-term global product agreement. Under the terms of the agreement, Barry Callebaut will deliver the majority of Kraft Foods cocoa products and industrial chocolate requirements around the world. The agreement, which also includes some of the Cadbury liquid chocolate deliveries under the current outsourcing agreement, is expected to more than double Barry Callebaut’s existing business with Kraft Foods.

Juergen Steinemann, chief executive of Barry Callebaut.

As a result of this agreement, Barry Callebaut will increase its production capacities primarily in the US, Canada, Cote d’Ivoire, Malaysia as well as in Europe and invest approximately $65m (SFr66m, Eur51m) over the next two years. The additional volumes will be built up gradually over a period of three years, starting immediately.

“This long-term global supply agreement with Kraft Foods ranks amongst the largest strategic deals our company has ever signed. It means that we have succeeded in firmly establishing ourselves as a leading supplier for cocoa and chocolate products to the international food industry,” says Juergen Steinemann, chief executive of Barry Callebaut. “We are excited about this partnership between two leading companies in their field which is evidence of the ongoing outsourcing and partnership trend in the chocolate industry.”

With annual sales of about SFr4.9b (Eur3.2b) last year, Zurich-based Barry Callebaut is present in 26 countries, operates more than 40 production facilities and employs about 7,500 people.

Posted in NewsComments Off on Barry Callebaut to Expand Production Capacity After Global Supply Agreement With Kraft

Cadbury Acquisition Drives Profit at Kraft Foods


The acquisition of Cadbury has helped Kraft Foods to report higher than expected second quarter profit despite a decline in its North American sales. Cadbury contributed 91% of the 25% rise in the US-based food and beverage giant’s net revenues to $12.3b during the quarter.

Kraft Foods’ operating income increased 16.8% to $1.70b, including a favourable impact of 17.8 percentage points from Cadbury’s operations, partially offset by a negative 11.0 percentage point impact from integration program and acquisition-related costs.

Irene Rosenfeld, chairman and chief executive of Kraft Foods.

“We delivered strong earnings in the quarter and the first half of the year, despite difficult conditions in many markets that tempered top-line growth,” says Irene Rosenfeld, chairman and chief executive of Kraft Foods. “We’re making excellent progress on the Cadbury integration and expect to realise even greater synergies. In light of our strong earnings momentum, we will reinvest our 2010 upside to build our brands and to harmonise business practices. We will deliver at least $2.00 of operating EPS this year while building a stronger foundation to achieve top-tier growth in 2011.”

Kraft Foods has increased its estimate of total cost synergies expected from the integration of Cadbury from $675m to at least $750m and has accordingly adjusted the total costs of the integration programme from approximately $1.3b to $1.5b.

Posted in NewsComments Off on Cadbury Acquisition Drives Profit at Kraft Foods

Kraft Foods to Sell Cadbury’s Romanian Business


Kraft Foods is selling its Cadbury’s Kandia-Excelent chocolate, soft cake and sugar confectionery business in Romania to Oryxa Capital, an international investment fund, for an undisclosed sum. The sale includes Kandia-Excelent brands (Rom, Magura, Kandia, Laura, Sugus and Silvana and others), related trademarks and the manufacturing facility in Bucharest.

Kandia-Excelent employs approximately 530 people. Kraft Foods will retain the Cadbury international brands, including Halls candy.

The disposal is in compliance with conditions set by the European Commission in approving Kraft Foods’ acquisition of Cadbury. Kraft Foods has already agreed the sale of Cadbury’s E Wedel business in Poland to Tokyo-based Lotte Group.

Posted in NewsComments Off on Kraft Foods to Sell Cadbury’s Romanian Business

Kraft Foods Sells Wedel Business in Poland


Kraft Foods is selling Cadbury’s E. Wedel-branded chocolate and sugar confectionery operations in Poland to Lotte Group for an undisclosed sum. The sale, which is subject to customary regulatory approvals, includes the E. Wedel business, its related brands and a manufacturing facility in Warsaw. Approximately 1,000 Cadbury Wedel employees will transfer to Lotte Group.

Kraft Foods will keep the remaining Cadbury business in Poland, including the Halls brand and other non-E. Wedel-branded chocolate and sugar confectionery products sold in Poland and two manufacturing plants in Skarbimierz. Subject to approval by the European Commission, Kraft Foods will also retain a third Cadbury plant in Bielany Wroclawskie, Poland.

Irene Rosenfeld, chairman and chief executive of Kraft Foods.

The sale follows the European Commission’s decision to approve Kraft Foods’ acquisition of Cadbury conditional on the disposal of the Cadbury E. Wedel business in Poland and the Cadbury chocolate confectionery and soft-cake business in Romania. The divestiture of the Romanian business will be the subject of a separate announcement at a later date.

Based in Tokyo, Lotte Group is a multinational conglomerate with annual sales of Yen3,547b ($40b). Founded in 1948 as a chewing gum company, it currently operates in a variety of sectors, including food and confectionery, retail, travel and tourism, industrial chemicals and construction, and finance. As the original business, confectionery is at the core of the Lotte Group’s operations. Lotte Group’s confectionery portfolio includes many well-known Asian brands, such as Xylitol, Koala March and Ghana. Lotte Group is the largest chewing gum manufacturer in Asia and third largest in the world.

Posted in NewsComments Off on Kraft Foods Sells Wedel Business in Poland




Food & Drink Business Conference & Exhibition 2015

Food & Drink Event Videos

Upcoming Events

  • February 25, 2017Golositalia & Aliment & Equipment
  • February 26, 2017Gulfood
  • March 3, 2017DETROP 2017
  • March 6, 2017Sibab Portugual 2017
AEC v1.0.4

Jobs: Food Packaging

Jobs: New Product Development

Jobs: Finance

Jobs: Project Management

Jobs: Logistics

The Magazine

F&D Business Preferred Suppliers

Advertisements