Global Market Expansion7
Kraft Foods began in the year 1903, when James Lewis Kraft purchased wholesale cheese and began to sell it to stores in Chicago, Illinois. Later on James Lewis Kraft along with his four brothers, Charles, Fred, Norman, and John, start the company J.L. Kraft & Bros. Company. The company then decided to produce and vend the company’s own cheese goods. The company then altered its name to Kraft Foods and began selling diversified products. Industry
The food and beverage business is a highly aggressive and developed market. The industry has flourished into a powerhouse led by vast international corporations. However, consumers are becoming more interested in health benefits, such as natural and organic foods. The risk of an increase in prices of raw materials also affects the industry. There is a constant battle between each company in providing more innovative products. SWOT Analysis
There are many characteristics within the Kraft Foods Company that make it a powerful competitor in the food and beverage industry. Kraft Foods has a strong brand image and product innovation. The company also shows a strong distribution network. However, the company’s shows a decline in profitability. Nevertheless, Kraft foods would benefit greatly by reconstructing products for consumers interested in health benefits. Going further with their beverage products will also increase revenue.
Kraft Foods competes with companies such as Nestle, General Mills, Coca Cola, and Pepsi Co. Since Kraft provides a wide variety of products, smaller businesses also pose a great threat of competition. Kraft’s main competitors also have a well-known brand image. Recommendations
In the short-term, Kraft Foods should focus on providing a more diverse selection of products that have a health benefit. Kraft should also focus on providing more innovative products in the beverage industry. This industry is growing and poses a great opportunity for Kraft. In the long run, Kraft Foods should work on improving their client base. They also should expand even more internationally. History
Kraft Foods Group Inc. (Kraft) is the leading food and beverage company located in North America and the second leading through out the world, with Nestle being number one. The company is traded in the NYSE as KFT. Kraft Foods started as a cheese factory in Chicago, Illinois. The company then later diversified their products and altered their company name to Kraft Foods Group Inc. Kraft Foods then began to acquire Tombstone Pizza Corporation, Capri Sun, Jack’s Frozen Pizza, Inc, Nabisco’s Nabisco Foods Group in the United States and Canada. Later on Kraft Foods then pitches Kraft Interactive Kitchen (kraftfoods.com). This is a web site dedicated to recipe ideas for consumers.
Current and Future Profile
Kraft Foods Group, Inc. functions as a food and beverage company in the United States. “Kraft Foods manufacturers and markets a variety of products such as, refreshment beverages, liquid concentrates, packaged juice drinks, powdered beverages, coffee products, beverage mixers, and hot beverage systems; processed cheese products; lunch meats, hot dogs, and bacon, as well as lunch combinations, soy-based meat alternatives, and pickles; and macaroni and cheese dinners, nuts, trail mixes and peanut butter, corn snacks, dry packaged desserts, and refrigerated gelatin and pudding snacks. The company also offers whipped toppings, marshmallows, chocolate and baking ingredients, salad dressings, sauces, mustards, bake coatings, stuffing mixes, meal kits, and shells and cheese dinners.” Kraft Foods Group Inc. also offers a website that enables consumers to see Kraft Recipes and product information. The...