Kraft Foods Inc. (NYSE: KFT) is the largest confectionery, food, and beverage corporation headquartered in the United States.[2] It markets many brands in more than 155 countries. 11 of its brands annually earn more than $1 billion worldwide: Kraft, Cadbury, Oscar Mayer, Maxwell House, Nabisco, Oreo, Philadelphia cream cheese, Jacobs, Milka, LU, and Trident. 40 of its brands are at least 100 years old.[3]
The company is headquartered in Northbrook, Illinois, a Chicago suburb.[4] Its European headquarters is in Glattpark, Opfikon, Switzerland, near Zürich;[5]
Kraft is an independent public company, it is listed on the New York Stock Exchange and became a component of the Dow Jones Industrial Average on September 22, 2008, replacing the American International Group.
Kraft Foods Inc. (Kraft Foods), incorporated in 2000, manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. The Company sells its products to consumers in approximately 170 countries. The Company operates in three segments: Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets. At December 31, 2010, the Company had operations in more than 75 countries and made its products at 223 manufacturing and processing facilities worldwide. At December 31, 2010, its portfolio included 11 brands Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacobs and Maxwell House coffees; Philadelphia cream cheeses; Kraft cheeses, dinners and dressings, and Oscar Mayer meats. The Company is a holding company. In February 2010, the Company announced that it has acquired the control of Cadbury plc. As of June 1, 2010, the Company owned 100% interest of Cadbury ADSs (Cadbury Shares).
On March 1, 2010, the Company completed the sale of the assets of its North American frozen pizza business (Frozen Pizza) to Nestle USA, Inc. (Nestle). Its Frozen Pizza business was a component of its U.S. Convenient Meals and Canada & N. A. Foodservice segments. The sale included the DiGiorno, Tombstone and Jack’s brands in the U.S., the Delissio brand in Canada and the California Pizza Kitchen trademark license.
Kraft Foods North America
Kraft Foods North America includes the United States Beverages, United States Cheese, United States Convenient Meals, United States Grocery, United States Snacks, and Canada and N.A. Foodservice. Beverages include Maxwell House, Starbucks (under license), Gevalia, General Foods International, Yuban and Seattle’s Best (under license) coffees; Tassimo hot beverage system; Capri Sun (under license) and Kool-Aid packaged juice drinks; Kool-Aid, Crystal Light and Country Time powdered beverages; and Tazo (under license) teas. Cheese include Kraft and Cracker Barrel natural cheeses; Philadelphia cream cheese; Kraft grated cheeses; Polly-O and Athenos cheese; Velveeta and Cheez Whiz processed cheeses; Kraft and Deli Deluxe processed cheese slices, and Breakstone’s and Knudsen cottage cheese and sour cream.
Convenient Meals include Oscar Mayer and Louis Rich cold cuts, hot dogs and bacon; Lunchables lunch combinations; Boca soy-based meat alternatives; Deli Creations complete sandwiches; and Claussen pickles. Grocery include Jell-O dry packaged desserts; Cool Whip whipped topping; Jell-O refrigerated gelatin and pudding snacks; Jet-Puffed marshmallows; Kraft and Miracle Whip spoonable dressings; Kraft and Good Seasons salad dressings; A.1. steak sauce; Kraft and Bull’s-Eye barbecue sauces; Grey Poupon premium mustards; Shake N’ Bake coatings; and Baker’s chocolate and baking ingredients. Biscuits include Oreo, Chips Ahoy!, Newtons, Nilla, Nutter Butter and SnackWell’s cookies; Ritz, Premium, Triscuit, Wheat Thins, Cheese Nips, Flavor Originals, Honey Maid grahams, Teddy Grahams crackers, Nabisco 100 Calorie Packs; Planters nuts and trail mixes; Handi-Snacks two-compartment snacks, and Back to Nature granola, cookies, crackers, nuts and fruit & nut mixes. Confectioneries include Toblerone, Trident, Halls, Stride, Dentyne, Sour Patch Kids, Swedish Fish, Maynards, Bubbas, Chiclets, Milka bars, and Clorets.
Canada & N.A Foodservice products span all Kraft Foods North America segments and sectors. Canadian brand offerings include Nabob coffee, Kraft peanut butter and Peek Freans biscuits, as well as a range of products bearing brand names similar to those marketed in the United States. The N.A. Foodservice business sells primarily branded products, including Maxwell House coffee, Oreo cookies, A.1. steak sauce, and a broad array of Kraft sauces, dressings and cheeses.
Kraft Foods Europe
Kraft Foods Europe includes biscuits, confectionery, beverages, cheese, grocery and convenient meals. Biscuits include Oreo, Digestive, Tuc, Mini-Star, Mikado (under license), Ourson, Petit Dejeuner, Cracotte, Belin, Heudebert, Grany, Petit Ecolier, Saiwa, Oro, Fonzies, Start, Prince and Belvita biscuits. Confectioneries include Milka, Marabou, Cote D’or, Toblerone, Freia, Suchard, Lacta, Pavlides,Mirabell chocolate confectionery products, Terry’s, Daim/Dime, Twist, Cadbury Dairy Milk, Roses, Creme Egg, Twirl, Flake, Crunchie, Heroes/Favourites, Wispa, Mini Eggs, Green and Black’s, Buttons, Milk Tray, Poulain, Giant Buttons, Double Decker, Moro/Boost, Timeout, Trident, Hollywood, Stimorol, Halls, Bassetts, Maynards, Trebor, Carambar, Poulain, La Pie Qui Chante, V6, TNCC, Eclairs, Malabara and Bubbas.
Beverages include Jacobs, Gevalia, Carte Noire, Jacques Vabre, Kaffee HAG, Grand’ Mere, Kenco, Saimaza, Maxwell House, Onko, Splendid, Starbucks (under license) and Karat coffees; Tassimo hot beverage system; Tang powdered beverages; and Suchard Express, O’Boy and Kaba chocolate drinks. Cheeses include Dairylea, Sottilette, Osella and El Caserio cheeses; and Philadelphia cream cheese. Grocery includes Kraft pourable and spoonable salad dressings; Miracel Whip spoonable dressings; and Miracoli sauces. Convenient Meals include Lunchables lunch combinations; Miracoli pasta dinners and sauces, and Simmenthal canned meats.
Kraft Foods Developing Markets
Kraft Foods Developing Markets includes biscuits, confectionery, beverages, cheese, grocery and convenient meals. Biscuits include Oreo, Chips Ahoy!, Ritz, Club Social, Express, Kraker Bran, Honey Bran, Aveny Bran, Marbu, Variedad, Pacific, Belvita, Cerealitas, Lucky, Trakinas, Tuc, Mikado (under license), Ourson, Petit Dejeuner, Cracotte, Bolshevik, Prichuda, Jubilee, Major, Merendina, Jacob’s, Chipsmore, Twisties, Biskuat/Tiger, Milk Biscuit, Hi Calcium Soda, Pepito, Gyori and PIM’s biscuits; and Estrella, Kar, Lux and Planters nuts and salted snacks. Confectionery includes Milka, Toblerone, Lacta, Cote d’Or, Recaldent, Terrabusi, Kent, Kan, Alpen Gold, Korona, Poiana, Svoge, Vozdushny, Figaro, Prince Polo / Siesta, Sport/Smash/Jazz/Moreni, Cadbury Dairy Milk, Picnic, 5 Star, Heroes / Favourites, Flake, Fundraising, Crunchie, Perk, Old Gold, Freddo, Cherry Ripe, Moro / Boost, Roses, Trident, Halls, Clorets, Bubbas, Dirol, Chiclets, Eclairs, Beldent, Dentyne, Recaldent, Xylicrystal, Falim, TNCC, tom Tom, Pascall, Chappies, First, Stride, Mentos, Stimorol.
Cheese includes Kraft, Velveeta and Eden processed cheeses; Philadelphia cream cheese; Kraft natural cheese; and Cheez Whiz processed cheese spread. Grocery includes Royal dry packaged desserts; Kraft spoonable and pourable salad dressings; Miracle Whip spoonable dressings; Jell-O dessert toppings; Kraft peanut butter, and Vegemite yeast spread. Convenient Meals include Kraft macaroni and cheese dinners.
Two major restructurings were undertaken in 1996 and 1998, the former involving the elimination of 6,000 jobs and a $428 million charge and the latter, 6,500 job cuts and a $530 million charge. Also in 1998 Nabisco sold its margarine and egg substitute business--including Parkay, Blue Bonnet, Fleischmann's, and Chiffon margarines and the Egg Beaters egg substitute product--to ConAgra, Inc. for $400 million.
Following the sale of its international tobacco operations, RJR Nabisco spun off its domestic tobacco business in 1999. The company was renamed Nabisco Group Holdings Corp., and its sole asset was its 80 percent stake in the Nabisco food unit, now called Nabisco Holdings Corp. Later in 1999 Nabisco Holdings purchased Favorite Brands International, maker of Jet-Puffed marshmallows (formerly Kraft marshmallows) and Farley's fruit snacks.
Nabisco was put up for sale in early 2000, leading to yet another takeover battle involving the company. This time Philip Morris emerged the victor, besting a joint bid by Groupe Danone and Cadbury Schweppes PLC. To complete its third major food company acquisition, Philip Morris had to pay $14.9 billion in cash plus assume $4 billion in debt.
Early 21st Century: Integrating Nabisco into Kraft Foods Inc. and an IPO
Philip Morris completed its acquisition of Nabisco in December 2000 and immediately began integrating the Nabisco operations into those of Kraft Foods and Kraft Foods International. In March 2001 Philip Morris created a new holding company for the combined operations known as Kraft Foods Inc. (lacking the comma of the previous Kraft Foods, Inc.). The previous Kraft Foods was renamed Kraft Foods North America, giving the new Kraft Foods two main units: Kraft Foods North America and Kraft Foods International. The two CEOs of these units, Betsy D. Holden and Roger K. Deromedi, respectively, were named co-CEOs of Kraft Foods Inc. In June 2001 Philip Morris sold a 16.1 percent stake in Kraft Foods to the public, retaining the remaining shares. The second largest IPO in U.S. history, the offering raised $8.68 billion, which Philip Morris earmarked to reduce debt it had incurred in acquiring Nabisco.
As it was integrating Nabisco and attempting to meet the anticipated annual cost savings of $600 million by 2003, Kraft Foods also began divesting some of the marginal brands it had acquired in the takeover. By late 2001, the company had announced that it had reached agreements to sell the Farley's and Sathers confection brands as well as its Mexican pasta business, which included the Yemina and Vesta brands. Additional divestments were expected for Kraft, which as one of the top two food companies in the world--with revenues approaching $35 billion--could be very choosy about which brands to retain in its very powerful portfolio.
Principal Subsidiaries: Kraft Foods North America, Inc.; Kraft Foods Holdings, Inc.; Kraft Foods International, Inc.; Kraft Foods Schweiz Holding AG (Switzerland); Nabisco Holdings Corp.; Nabisco, Inc.; Nabisco Brands Company; Kraft Pizza Company; Kraft Food Ingredients Corp.; Capri Sun, Inc.; Callard & Bowser-Suchard, Inc.; Balance Bar Company; MEX Holdings, Ltd.; Nabisco Biscuit Manufacturing (Midwest), Inc.; Nabisco Biscuit Manufacturing (West), Inc.; Nabisco England IHC, Inc.; Nabisco Group Ltd.; Nabisco Holdings IHC, Inc.; Nabisco International, Inc.; Nabisco Technology Company; Kraft Foods Ltd. (Australia); Kraft Canada Inc.; Kraft Foods Italia S.p.A. (Italy); Ajinomoto General Foods, Inc. (Japan); Dong Suh Foods Corporation (South Korea); Votesor BV (Netherlands); Kraft Foods Belgium S.A.; Kraft Foods AS (Norway); Kraft Sverige AB (Sweden); Kraft Foods España, S.A. (Spain); Kraft Foods Schweiz AG (Switzerland); Kraft Foods France; Kraft Foods Deutschland Holding GmbH (Germany); Kraft Foods Produktion GmbH (Germany); Kraft Foods UK Limited; Gevaliarosteriet AB (Sweden); Jacobs Suchard Alimentos do Brasil Ltda. (Brazil); Kraft Lacta Suchard Brasil, S.A. (Brazil); Corporativo Kraft S.A. de C.V. (Mexico); Kraft Foods de Mexico, S.A. de C.V.; Establecimiento Modelo Terrabusi S.A. (Argentina); Nabisco Argentina S.A.; Nabisco Iberia, S.L. (Spain); Nabisco Limited (Canada); Productos Alimenticios Fleischmann e Royal Ltda. (Brazil); Nabisco Euro Holdings Ltd. (Cayman Islands).
Principal Operating Units: Kraft Foods North America; Kraft Foods International.
Principal Competitors: Nestlé S.A.; Unilever; ConAgra Foods, Inc.; Groupe Danone; H.J. Heinz Company; Sara Lee Corporation; General Mills, Inc.; Campbell Soup Company; Kellogg Company; The Quaker Oats Company; Dean Foods Company; Frito-Lay Company.
OVERALL
Beta: 0.58
Market Cap (Mil.): $59,838.11
Shares Outstanding (Mil.): 1,757.88
Annual Dividend: 1.16
Yield (%): 3.41
FINANCIALS
KFT.N Industry Sector
P/E (TTM): 19.72 60.79 35.12
EPS (TTM): 5.93 -- --
ROI: 3.85 2.45 8.07
ROE: 8.47 3.93 13.03
Company Perspectives:
We're there at breakfast, lunch and dinner, and anytime in between. You can find our brands at a French hypermarket, in a vending machine in Japan, or in any American grocery store.
Around the globe, in 140 countries, our 117,000 employees are dedicated to bringing the world its favorite foods. Brands like Kraft, Jacobs, Philadelphia, Maxwell House, Nabisco, Oscar Mayer and Post.
Our company is built on a history of quality and innovation that dates back literally hundreds of years. Over that time, Kraft Foods has grown from modest beginnings to become the second largest food and beverage company in the world. But no matter what our size, we've never lost sight of why we're here--to help make food a simpler, easier, more enjoyable part of life.
Key Dates:
1896: Charles W. Post incorporates Postum Cereal Company, Ltd., having introduced Postum cereal beverage the previous year.
1897: Postum introduces a new cereal called Grape-Nuts.
1898: American Biscuit Company and New York Biscuit Company merge to form the National Biscuit Company (N.B.C.).
1903: James L. Kraft establishes a wholesale cheese distribution business in Chicago.
1909: J.L. Kraft & Bros. Company is incorporated.
1912: N.B.C. launches the Oreo cookie.
1914: Kraft opens its first cheese factory.
1922: Postum Cereal goes public.
1924: Kraft & Bros. changes its name to Kraft Cheese Company and goes public.
1925: Postum begins diversifying with acquisition of the Jell-O Company.
1927: Postum acquires Baker's chocolate and shortens its name to Postum Company.
1928: Postum acquires Maxwell House coffee; Kraft merges with Phenix Cheese Corporation, maker of Philadelphia Brand cream cheese; Kraft introduces Velveeta process cheese spread; N.B.C. acquires Shredded Wheat Company.
1929: Postum acquires controlling interest in Clarence Birdseye's General Foods Company; Postum changes its name to General Foods Corporation; Fleischmann Company, Chase & Sanborn, and the Royal Baking Powder Company merge to form Standard Brands.
1930: Kraft is acquired by National Dairy Products Corporation but continues to operate independently.
1933: Kraft introduces Miracle Whip salad dressing.
1934: Ritz crackers are launched by N.B.C.
1937: The Kraft macaroni and cheese dinner debuts.
1941: The letters "N.B.C." in National Biscuit's official trademark are replaced by the word "Nabisco."
1945: Kraft changes its name to Kraft Foods Company.
1953: General Foods acquires Perkins Products, maker of Kool-Aid powdered beverage mixes.
1956: National Dairy begins centralizing its operations, transforming Kraft from subsidiary to division.
1961: Standard Brands acquires Planters Nut & Chocolate Co.
1969: National Dairy renames itself Kraftco Corporation.
1971: National Biscuit changes its name to Nabisco, Inc.
1976: Kraftco is renamed Kraft, Inc.
1980: Kraft merges with Dart Industries Inc., forming Dart & Kraft Inc., with Kraft continuing to operate independently as a subsidiary.
1981: General Foods acquires Oscar Mayer & Co.; Nabisco and Standard Brands merge to form Nabisco Brands, Inc.; Nabisco Brands acquires the Life Savers Company.
1985: Philip Morris Companies Inc. acquires General Foods; R.J. Reynolds acquires Nabisco Brands, forming RJR Nabisco, Inc. and its food unit, Nabisco Foods Group.
1986: Dart & Kraft is demerged into Kraft, Inc. (the food operations plus Duracell batteries) and Premark International (the remaining operations).
1988: Kraft sells Duracell; Philip Morris acquires Kraft.
1989: Philip Morris combines General Foods and Kraft under a new holding company called Kraft General Foods, Inc.--although the two units continue to operate separately; Kraft General Foods International is also established; Kohlberg Kravis Roberts gains control of RJR Nabisco through a leveraged buyout; RJR Nabisco sells its European cookie and cracker business to BSN.
1990: Kraft General Foods International acquires Jacobs Suchard AG; RJR Nabisco sells its Asia-Pacific operations to Britannia Brands.
1991: RJR Nabisco goes public as RJR Nabisco Holdings Corp.
1993: Jacobs Suchard acquires Freia Marabou a.s., the top Scandinavian confectioner; Kraft General Foods acquires RJR Nabisco Holdings' cold cereal business, including Shredded Wheat; Kraft General Foods divests its ice cream business and its BirdsEye frozen vegetables brand; RJR Nabisco launches the Snackwells line of low-fat cookies and crackers.
1994: Kraft General Foods sells off its foodservice unit.
1995: Major restructuring melds Kraft and General Foods into Kraft Foods, Inc.; Kraft General Foods International is renamed Kraft Foods International, Inc. and becomes a subsidiary of Kraft Foods, Inc.; Kraft sells its bakery division to CPC International.
1998: RJR Nabisco sells its margarine and egg substitute business to ConAgra.
1999: Following the divestment of its tobacco operations, RJR Nabisco changes its name to Nabisco Group Holdings Corp.; the company's sole asset is its 80 percent stake in the Nabisco food unit, now known as Nabisco Holdings Corp.
2000: Philip Morris acquires Nabisco Holdings for $18.9 billion and begins integrating the Nabisco operations into Kraft.
2001: Philip Morris sells a 16.1 percent stake in Kraft Foods Inc. to the public.
Name Age Since Current Position
Rosenfeld, Irene 57 2007 Chairman of the Board, Chief Executive Officer
Brearton, David 50 2008 Executive Vice President - Operations and Business Services
West, Mary 48 2010 Executive Vice President, Chief Category and Marketing Officer
Firestone, Marc 51 2006 Executive Vice President - Corporate and Legal Affairs, General Counsel
May, Karen 53 2005 Executive Vice President - Global Human Resources
Spence, Jean 53 2004 Executive Vice President - Research, Development and Quality
Khosla, Sanjay 59 2010 Executive Vice President and President - Developing Markets
Clarke, Michael 46 2009 Executive Vice President and President, Kraft Foods Europe
Vernon, W. Anthony 55 2009 Executive Vice President and President, Kraft Foods North America
Rovit, Sam 53 2011 Executive Vice President - Strategy
Ketchum, Mark 61 2009 Lead Independent Director
Pope, John 62 2001 Independent Director
Wright, Deborah 53 2001 Independent Director
Lerner, Richard 72 2005 Independent Director
Banga, Ajaypal 51 2007 Independent Director
Juliber, Lois 62 2007 Independent Director
Zarb, Frank 75 2007 Independent Director
Hart, Myra 70 2007 Independent Director
Reynolds, Fredric 60 2007 Independent Director
McDonald, Mackey 64 2010 Independent Director
van Boxmeer, Jean-Francois 49 2010 Independent Director
Address:
Three Lakes Drive
Northfield, Illinois 60093
U.S.A.
The company is headquartered in Northbrook, Illinois, a Chicago suburb.[4] Its European headquarters is in Glattpark, Opfikon, Switzerland, near Zürich;[5]
Kraft is an independent public company, it is listed on the New York Stock Exchange and became a component of the Dow Jones Industrial Average on September 22, 2008, replacing the American International Group.
Kraft Foods Inc. (Kraft Foods), incorporated in 2000, manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. The Company sells its products to consumers in approximately 170 countries. The Company operates in three segments: Kraft Foods North America, Kraft Foods Europe and Kraft Foods Developing Markets. At December 31, 2010, the Company had operations in more than 75 countries and made its products at 223 manufacturing and processing facilities worldwide. At December 31, 2010, its portfolio included 11 brands Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacobs and Maxwell House coffees; Philadelphia cream cheeses; Kraft cheeses, dinners and dressings, and Oscar Mayer meats. The Company is a holding company. In February 2010, the Company announced that it has acquired the control of Cadbury plc. As of June 1, 2010, the Company owned 100% interest of Cadbury ADSs (Cadbury Shares).
On March 1, 2010, the Company completed the sale of the assets of its North American frozen pizza business (Frozen Pizza) to Nestle USA, Inc. (Nestle). Its Frozen Pizza business was a component of its U.S. Convenient Meals and Canada & N. A. Foodservice segments. The sale included the DiGiorno, Tombstone and Jack’s brands in the U.S., the Delissio brand in Canada and the California Pizza Kitchen trademark license.
Kraft Foods North America
Kraft Foods North America includes the United States Beverages, United States Cheese, United States Convenient Meals, United States Grocery, United States Snacks, and Canada and N.A. Foodservice. Beverages include Maxwell House, Starbucks (under license), Gevalia, General Foods International, Yuban and Seattle’s Best (under license) coffees; Tassimo hot beverage system; Capri Sun (under license) and Kool-Aid packaged juice drinks; Kool-Aid, Crystal Light and Country Time powdered beverages; and Tazo (under license) teas. Cheese include Kraft and Cracker Barrel natural cheeses; Philadelphia cream cheese; Kraft grated cheeses; Polly-O and Athenos cheese; Velveeta and Cheez Whiz processed cheeses; Kraft and Deli Deluxe processed cheese slices, and Breakstone’s and Knudsen cottage cheese and sour cream.
Convenient Meals include Oscar Mayer and Louis Rich cold cuts, hot dogs and bacon; Lunchables lunch combinations; Boca soy-based meat alternatives; Deli Creations complete sandwiches; and Claussen pickles. Grocery include Jell-O dry packaged desserts; Cool Whip whipped topping; Jell-O refrigerated gelatin and pudding snacks; Jet-Puffed marshmallows; Kraft and Miracle Whip spoonable dressings; Kraft and Good Seasons salad dressings; A.1. steak sauce; Kraft and Bull’s-Eye barbecue sauces; Grey Poupon premium mustards; Shake N’ Bake coatings; and Baker’s chocolate and baking ingredients. Biscuits include Oreo, Chips Ahoy!, Newtons, Nilla, Nutter Butter and SnackWell’s cookies; Ritz, Premium, Triscuit, Wheat Thins, Cheese Nips, Flavor Originals, Honey Maid grahams, Teddy Grahams crackers, Nabisco 100 Calorie Packs; Planters nuts and trail mixes; Handi-Snacks two-compartment snacks, and Back to Nature granola, cookies, crackers, nuts and fruit & nut mixes. Confectioneries include Toblerone, Trident, Halls, Stride, Dentyne, Sour Patch Kids, Swedish Fish, Maynards, Bubbas, Chiclets, Milka bars, and Clorets.
Canada & N.A Foodservice products span all Kraft Foods North America segments and sectors. Canadian brand offerings include Nabob coffee, Kraft peanut butter and Peek Freans biscuits, as well as a range of products bearing brand names similar to those marketed in the United States. The N.A. Foodservice business sells primarily branded products, including Maxwell House coffee, Oreo cookies, A.1. steak sauce, and a broad array of Kraft sauces, dressings and cheeses.
Kraft Foods Europe
Kraft Foods Europe includes biscuits, confectionery, beverages, cheese, grocery and convenient meals. Biscuits include Oreo, Digestive, Tuc, Mini-Star, Mikado (under license), Ourson, Petit Dejeuner, Cracotte, Belin, Heudebert, Grany, Petit Ecolier, Saiwa, Oro, Fonzies, Start, Prince and Belvita biscuits. Confectioneries include Milka, Marabou, Cote D’or, Toblerone, Freia, Suchard, Lacta, Pavlides,Mirabell chocolate confectionery products, Terry’s, Daim/Dime, Twist, Cadbury Dairy Milk, Roses, Creme Egg, Twirl, Flake, Crunchie, Heroes/Favourites, Wispa, Mini Eggs, Green and Black’s, Buttons, Milk Tray, Poulain, Giant Buttons, Double Decker, Moro/Boost, Timeout, Trident, Hollywood, Stimorol, Halls, Bassetts, Maynards, Trebor, Carambar, Poulain, La Pie Qui Chante, V6, TNCC, Eclairs, Malabara and Bubbas.
Beverages include Jacobs, Gevalia, Carte Noire, Jacques Vabre, Kaffee HAG, Grand’ Mere, Kenco, Saimaza, Maxwell House, Onko, Splendid, Starbucks (under license) and Karat coffees; Tassimo hot beverage system; Tang powdered beverages; and Suchard Express, O’Boy and Kaba chocolate drinks. Cheeses include Dairylea, Sottilette, Osella and El Caserio cheeses; and Philadelphia cream cheese. Grocery includes Kraft pourable and spoonable salad dressings; Miracel Whip spoonable dressings; and Miracoli sauces. Convenient Meals include Lunchables lunch combinations; Miracoli pasta dinners and sauces, and Simmenthal canned meats.
Kraft Foods Developing Markets
Kraft Foods Developing Markets includes biscuits, confectionery, beverages, cheese, grocery and convenient meals. Biscuits include Oreo, Chips Ahoy!, Ritz, Club Social, Express, Kraker Bran, Honey Bran, Aveny Bran, Marbu, Variedad, Pacific, Belvita, Cerealitas, Lucky, Trakinas, Tuc, Mikado (under license), Ourson, Petit Dejeuner, Cracotte, Bolshevik, Prichuda, Jubilee, Major, Merendina, Jacob’s, Chipsmore, Twisties, Biskuat/Tiger, Milk Biscuit, Hi Calcium Soda, Pepito, Gyori and PIM’s biscuits; and Estrella, Kar, Lux and Planters nuts and salted snacks. Confectionery includes Milka, Toblerone, Lacta, Cote d’Or, Recaldent, Terrabusi, Kent, Kan, Alpen Gold, Korona, Poiana, Svoge, Vozdushny, Figaro, Prince Polo / Siesta, Sport/Smash/Jazz/Moreni, Cadbury Dairy Milk, Picnic, 5 Star, Heroes / Favourites, Flake, Fundraising, Crunchie, Perk, Old Gold, Freddo, Cherry Ripe, Moro / Boost, Roses, Trident, Halls, Clorets, Bubbas, Dirol, Chiclets, Eclairs, Beldent, Dentyne, Recaldent, Xylicrystal, Falim, TNCC, tom Tom, Pascall, Chappies, First, Stride, Mentos, Stimorol.
Cheese includes Kraft, Velveeta and Eden processed cheeses; Philadelphia cream cheese; Kraft natural cheese; and Cheez Whiz processed cheese spread. Grocery includes Royal dry packaged desserts; Kraft spoonable and pourable salad dressings; Miracle Whip spoonable dressings; Jell-O dessert toppings; Kraft peanut butter, and Vegemite yeast spread. Convenient Meals include Kraft macaroni and cheese dinners.
Two major restructurings were undertaken in 1996 and 1998, the former involving the elimination of 6,000 jobs and a $428 million charge and the latter, 6,500 job cuts and a $530 million charge. Also in 1998 Nabisco sold its margarine and egg substitute business--including Parkay, Blue Bonnet, Fleischmann's, and Chiffon margarines and the Egg Beaters egg substitute product--to ConAgra, Inc. for $400 million.
Following the sale of its international tobacco operations, RJR Nabisco spun off its domestic tobacco business in 1999. The company was renamed Nabisco Group Holdings Corp., and its sole asset was its 80 percent stake in the Nabisco food unit, now called Nabisco Holdings Corp. Later in 1999 Nabisco Holdings purchased Favorite Brands International, maker of Jet-Puffed marshmallows (formerly Kraft marshmallows) and Farley's fruit snacks.
Nabisco was put up for sale in early 2000, leading to yet another takeover battle involving the company. This time Philip Morris emerged the victor, besting a joint bid by Groupe Danone and Cadbury Schweppes PLC. To complete its third major food company acquisition, Philip Morris had to pay $14.9 billion in cash plus assume $4 billion in debt.
Early 21st Century: Integrating Nabisco into Kraft Foods Inc. and an IPO
Philip Morris completed its acquisition of Nabisco in December 2000 and immediately began integrating the Nabisco operations into those of Kraft Foods and Kraft Foods International. In March 2001 Philip Morris created a new holding company for the combined operations known as Kraft Foods Inc. (lacking the comma of the previous Kraft Foods, Inc.). The previous Kraft Foods was renamed Kraft Foods North America, giving the new Kraft Foods two main units: Kraft Foods North America and Kraft Foods International. The two CEOs of these units, Betsy D. Holden and Roger K. Deromedi, respectively, were named co-CEOs of Kraft Foods Inc. In June 2001 Philip Morris sold a 16.1 percent stake in Kraft Foods to the public, retaining the remaining shares. The second largest IPO in U.S. history, the offering raised $8.68 billion, which Philip Morris earmarked to reduce debt it had incurred in acquiring Nabisco.
As it was integrating Nabisco and attempting to meet the anticipated annual cost savings of $600 million by 2003, Kraft Foods also began divesting some of the marginal brands it had acquired in the takeover. By late 2001, the company had announced that it had reached agreements to sell the Farley's and Sathers confection brands as well as its Mexican pasta business, which included the Yemina and Vesta brands. Additional divestments were expected for Kraft, which as one of the top two food companies in the world--with revenues approaching $35 billion--could be very choosy about which brands to retain in its very powerful portfolio.
Principal Subsidiaries: Kraft Foods North America, Inc.; Kraft Foods Holdings, Inc.; Kraft Foods International, Inc.; Kraft Foods Schweiz Holding AG (Switzerland); Nabisco Holdings Corp.; Nabisco, Inc.; Nabisco Brands Company; Kraft Pizza Company; Kraft Food Ingredients Corp.; Capri Sun, Inc.; Callard & Bowser-Suchard, Inc.; Balance Bar Company; MEX Holdings, Ltd.; Nabisco Biscuit Manufacturing (Midwest), Inc.; Nabisco Biscuit Manufacturing (West), Inc.; Nabisco England IHC, Inc.; Nabisco Group Ltd.; Nabisco Holdings IHC, Inc.; Nabisco International, Inc.; Nabisco Technology Company; Kraft Foods Ltd. (Australia); Kraft Canada Inc.; Kraft Foods Italia S.p.A. (Italy); Ajinomoto General Foods, Inc. (Japan); Dong Suh Foods Corporation (South Korea); Votesor BV (Netherlands); Kraft Foods Belgium S.A.; Kraft Foods AS (Norway); Kraft Sverige AB (Sweden); Kraft Foods España, S.A. (Spain); Kraft Foods Schweiz AG (Switzerland); Kraft Foods France; Kraft Foods Deutschland Holding GmbH (Germany); Kraft Foods Produktion GmbH (Germany); Kraft Foods UK Limited; Gevaliarosteriet AB (Sweden); Jacobs Suchard Alimentos do Brasil Ltda. (Brazil); Kraft Lacta Suchard Brasil, S.A. (Brazil); Corporativo Kraft S.A. de C.V. (Mexico); Kraft Foods de Mexico, S.A. de C.V.; Establecimiento Modelo Terrabusi S.A. (Argentina); Nabisco Argentina S.A.; Nabisco Iberia, S.L. (Spain); Nabisco Limited (Canada); Productos Alimenticios Fleischmann e Royal Ltda. (Brazil); Nabisco Euro Holdings Ltd. (Cayman Islands).
Principal Operating Units: Kraft Foods North America; Kraft Foods International.
Principal Competitors: Nestlé S.A.; Unilever; ConAgra Foods, Inc.; Groupe Danone; H.J. Heinz Company; Sara Lee Corporation; General Mills, Inc.; Campbell Soup Company; Kellogg Company; The Quaker Oats Company; Dean Foods Company; Frito-Lay Company.
OVERALL
Beta: 0.58
Market Cap (Mil.): $59,838.11
Shares Outstanding (Mil.): 1,757.88
Annual Dividend: 1.16
Yield (%): 3.41
FINANCIALS
KFT.N Industry Sector
P/E (TTM): 19.72 60.79 35.12
EPS (TTM): 5.93 -- --
ROI: 3.85 2.45 8.07
ROE: 8.47 3.93 13.03
Company Perspectives:
We're there at breakfast, lunch and dinner, and anytime in between. You can find our brands at a French hypermarket, in a vending machine in Japan, or in any American grocery store.
Around the globe, in 140 countries, our 117,000 employees are dedicated to bringing the world its favorite foods. Brands like Kraft, Jacobs, Philadelphia, Maxwell House, Nabisco, Oscar Mayer and Post.
Our company is built on a history of quality and innovation that dates back literally hundreds of years. Over that time, Kraft Foods has grown from modest beginnings to become the second largest food and beverage company in the world. But no matter what our size, we've never lost sight of why we're here--to help make food a simpler, easier, more enjoyable part of life.
Key Dates:
1896: Charles W. Post incorporates Postum Cereal Company, Ltd., having introduced Postum cereal beverage the previous year.
1897: Postum introduces a new cereal called Grape-Nuts.
1898: American Biscuit Company and New York Biscuit Company merge to form the National Biscuit Company (N.B.C.).
1903: James L. Kraft establishes a wholesale cheese distribution business in Chicago.
1909: J.L. Kraft & Bros. Company is incorporated.
1912: N.B.C. launches the Oreo cookie.
1914: Kraft opens its first cheese factory.
1922: Postum Cereal goes public.
1924: Kraft & Bros. changes its name to Kraft Cheese Company and goes public.
1925: Postum begins diversifying with acquisition of the Jell-O Company.
1927: Postum acquires Baker's chocolate and shortens its name to Postum Company.
1928: Postum acquires Maxwell House coffee; Kraft merges with Phenix Cheese Corporation, maker of Philadelphia Brand cream cheese; Kraft introduces Velveeta process cheese spread; N.B.C. acquires Shredded Wheat Company.
1929: Postum acquires controlling interest in Clarence Birdseye's General Foods Company; Postum changes its name to General Foods Corporation; Fleischmann Company, Chase & Sanborn, and the Royal Baking Powder Company merge to form Standard Brands.
1930: Kraft is acquired by National Dairy Products Corporation but continues to operate independently.
1933: Kraft introduces Miracle Whip salad dressing.
1934: Ritz crackers are launched by N.B.C.
1937: The Kraft macaroni and cheese dinner debuts.
1941: The letters "N.B.C." in National Biscuit's official trademark are replaced by the word "Nabisco."
1945: Kraft changes its name to Kraft Foods Company.
1953: General Foods acquires Perkins Products, maker of Kool-Aid powdered beverage mixes.
1956: National Dairy begins centralizing its operations, transforming Kraft from subsidiary to division.
1961: Standard Brands acquires Planters Nut & Chocolate Co.
1969: National Dairy renames itself Kraftco Corporation.
1971: National Biscuit changes its name to Nabisco, Inc.
1976: Kraftco is renamed Kraft, Inc.
1980: Kraft merges with Dart Industries Inc., forming Dart & Kraft Inc., with Kraft continuing to operate independently as a subsidiary.
1981: General Foods acquires Oscar Mayer & Co.; Nabisco and Standard Brands merge to form Nabisco Brands, Inc.; Nabisco Brands acquires the Life Savers Company.
1985: Philip Morris Companies Inc. acquires General Foods; R.J. Reynolds acquires Nabisco Brands, forming RJR Nabisco, Inc. and its food unit, Nabisco Foods Group.
1986: Dart & Kraft is demerged into Kraft, Inc. (the food operations plus Duracell batteries) and Premark International (the remaining operations).
1988: Kraft sells Duracell; Philip Morris acquires Kraft.
1989: Philip Morris combines General Foods and Kraft under a new holding company called Kraft General Foods, Inc.--although the two units continue to operate separately; Kraft General Foods International is also established; Kohlberg Kravis Roberts gains control of RJR Nabisco through a leveraged buyout; RJR Nabisco sells its European cookie and cracker business to BSN.
1990: Kraft General Foods International acquires Jacobs Suchard AG; RJR Nabisco sells its Asia-Pacific operations to Britannia Brands.
1991: RJR Nabisco goes public as RJR Nabisco Holdings Corp.
1993: Jacobs Suchard acquires Freia Marabou a.s., the top Scandinavian confectioner; Kraft General Foods acquires RJR Nabisco Holdings' cold cereal business, including Shredded Wheat; Kraft General Foods divests its ice cream business and its BirdsEye frozen vegetables brand; RJR Nabisco launches the Snackwells line of low-fat cookies and crackers.
1994: Kraft General Foods sells off its foodservice unit.
1995: Major restructuring melds Kraft and General Foods into Kraft Foods, Inc.; Kraft General Foods International is renamed Kraft Foods International, Inc. and becomes a subsidiary of Kraft Foods, Inc.; Kraft sells its bakery division to CPC International.
1998: RJR Nabisco sells its margarine and egg substitute business to ConAgra.
1999: Following the divestment of its tobacco operations, RJR Nabisco changes its name to Nabisco Group Holdings Corp.; the company's sole asset is its 80 percent stake in the Nabisco food unit, now known as Nabisco Holdings Corp.
2000: Philip Morris acquires Nabisco Holdings for $18.9 billion and begins integrating the Nabisco operations into Kraft.
2001: Philip Morris sells a 16.1 percent stake in Kraft Foods Inc. to the public.
Name Age Since Current Position
Rosenfeld, Irene 57 2007 Chairman of the Board, Chief Executive Officer
Brearton, David 50 2008 Executive Vice President - Operations and Business Services
West, Mary 48 2010 Executive Vice President, Chief Category and Marketing Officer
Firestone, Marc 51 2006 Executive Vice President - Corporate and Legal Affairs, General Counsel
May, Karen 53 2005 Executive Vice President - Global Human Resources
Spence, Jean 53 2004 Executive Vice President - Research, Development and Quality
Khosla, Sanjay 59 2010 Executive Vice President and President - Developing Markets
Clarke, Michael 46 2009 Executive Vice President and President, Kraft Foods Europe
Vernon, W. Anthony 55 2009 Executive Vice President and President, Kraft Foods North America
Rovit, Sam 53 2011 Executive Vice President - Strategy
Ketchum, Mark 61 2009 Lead Independent Director
Pope, John 62 2001 Independent Director
Wright, Deborah 53 2001 Independent Director
Lerner, Richard 72 2005 Independent Director
Banga, Ajaypal 51 2007 Independent Director
Juliber, Lois 62 2007 Independent Director
Zarb, Frank 75 2007 Independent Director
Hart, Myra 70 2007 Independent Director
Reynolds, Fredric 60 2007 Independent Director
McDonald, Mackey 64 2010 Independent Director
van Boxmeer, Jean-Francois 49 2010 Independent Director
Address:
Three Lakes Drive
Northfield, Illinois 60093
U.S.A.
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