Oreo Cookies

Topics: Nabisco, Kraft Foods, Oreo Pages: 5 (1741 words) Published: July 31, 2011
Oreo Cookie Products

Nabisco is a company that has been in existents since 1898. During their 109 years in existence, they have grown through natural growth, mergers, and acquisitions. This has allowed Nabisco to be the leading snack maker in the world. Being the leading snack maker has allowed Nabisco to introduce a diverse selection of foods. However in recent years Nabisco has been reluctant to adapt to current market trends. The company was focusing on producing new versions of existing products to make them more convenient. However Nabisco was ignoring that other companies were creating similar products that were cheaper and also healthier products. Recently, Nabisco realized this trend and began creating healthier foods such as 100-calorie snack packs, low carb foods, and low fat foods. With these new products, Nabisco has been able to serve people that have chosen to adapt to a healthy eating life style. The new Fat Free OREO that Nabisco will be introducing next year will solidify Nabisco as a company that is willing to support those that have adopted that healthy eating life style. Nabisco is expecting the new Fat Free OREO to become one of the leading fat free snacks on the market. Nabisco hopes to expand to other fat free products like OREO piecrust, OREO ice cream cones, and snack size packages of Fat Free OREO for vending machines or individual purchases in 2009.

Situation Analysis
In 1898, The National Biscuit Company was formed in the US through the merger of several regional baking companies. In 1952, the now familiar red Nabisco triangle first appeared on the upper left corner of National Biscuit Company products. National Biscuit Company changed its name to Nabisco in 1971. In 1981, Nabisco, Inc. merged with Standard Brands (founded in 1929) to become Nabisco Brands. To expand their global presence and to strengthen their position in the fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired Nabisco Holdings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash plus assumed $4 million in debt (Grant 243). Nabisco is the world’s largest manufacturer and marketer of cookies and crackers, based on retail sales. Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations (Cookies 4). 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 (Grant 243). The people of Kraft have recognized that the business has an important role in society- a responsibility that included understanding and meeting the public’s expectations, helping to address important social, environmental and economic issues and making a difference in local communities and the world. They firmly believe that “Our success will depend importantly on our willingness and ability to listen, get feedback on what we’re doing from those both inside and outside Kraft and act responsibly on issues of important concern.” Beginning in the early 1990’s cookie sales began to slowly decline because consumer’s buying habits were shifting towards lower calorie. When more brands began making low fat products, then sales began to slowly increase again. By the early 2000s the low fat trend was out and the low carb trend was in. Therefore, cookie sales fell by 1.9 percent. The low carb craze has diminished in the eyes of Americans. There are numerous diets that are setting the trend for the low fat craze. Among them are the South Beach Diet, Jenny Craig, and Weight Watchers. However, these diets do not ban but actually encourage the consumption of “good” fats. In order to gain back old consumers and attract new consumers, companies have had to develop a wide variety of products containing a low or no amount of fat. Numerous companies are creating low fat/no fat versions of their products and...
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