Kraft

Topics: Kraft Foods, Cadbury plc, Maxwell House Pages: 18 (3758 words) Published: September 29, 2014
Kamila Toufarova

International Business – Individual Project
KRAFT FOODS INC.
KRAFT FOODS MISSION
“Our mission is to be North America’s best food & beverage company. Our company has a great heritage that we’re building into and even grater future.” IMPORTANT INFORMATION ABOUT CORPORATE SPIN-OFF

On 1 October 2012, the former Kraft Foods Inc. changed its name to Mondelēz International Inc. and spun-off some brands into a new company called Kraft Foods Group Inc. Kraft Foods Group focuses on the North American food business. On the other hand Mondelēz International focuses on the global snacks business, including the former Cadbury businesses, plus global brands including Dairylea and Philadelphia. FACTS ABOUT KRAFT FOODS GROUP INC



It is North America’s fourth largest consumer packaged food and beverage company



$19 billion in annual sales (Kraft Foods Inc. in 2011)



10 brands with more than $500 million in sales (2011)



98% of North American households have Kraft brands in their households



25% of the firm's sales and earnings generated beyond the borders of USA



Approximately 80 % of Kraft Foods Group's revenue comes from categories in which the company holds the No. 1 or No. 2 market position



Kraft employs 25,000 employees in the US and Canada



Its American headquarter is located in Northfield, Illinois and its European headquarter in Opfikon, Switzerland



It is a public company listed on the NASDAQ

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FACTS ABOUT MONDELEZ INTERNATIONAL INC



Mondelēz is a whole new company. It arose from Kraft Foods Inc. in October 2012 It employs around 100,000 people around the world



Its products are marketed in 170 countries



Mondelēz has leading shares in every category and every region of the world in which it competes in snacks. It holds the No. 1 position globally in Biscuits, Candy, Chocolate and Powdered Beverages as well as the No. 2 position in Gum and Coffee

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CORPORATE STRATEGY
A.


CORPORATE STRATEGY – SPIN-OFF

SETTLEMENT ARRANGED FOR SHAREHOLDERS

On 01 Oct 2012, Kraft Foods Inc. completed the spin-off of Kraft Foods Group, Inc. (the N. American grocery business) thru a pro rata dividend of all shares of Kraft Foods Group, Inc. Therefore, post-spin, shareholders owns 1 share of Mondelēz International, Inc. (MDLZ) and .33 shares of Kraft Foods Group, Inc. (KRFT) for every share of Kraft Foods Inc. (KFT) that they owned before the spin-off.



THE SPIN-OFF

The business, that becomes an independent public company in October 2012, expects to deliver steady and profitable top-line growth, consistent bottom-line growth and a superior dividend payout.
As previously announced, Kraft Foods Inc. planed to spin-off Kraft Foods Group, Inc., which now holds Kraft Foods' North American grocery business on Oct. 1, 2012. Kraft Foods Group trades on the NASDAQ (KRFT). Following the spin-off, Kraft Foods Inc. was renamed Mondelēz International, Inc. It trades on the NASDAQ under the symbol MDLZ.

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BRANDS’ PORTFOLIO SPLIT

Kraft Foods Group offers a diverse portfolio of brands with products in the beverages, cheese, convenient meals and grocery categories. Led by iconic brands like Kraft, Oscar Mayer and Maxwell House, Kraft Foods Group is N. America's fourth largest consumer packaged food and beverage company out of the gate, with revenues of approx. $19 billion in 2011. 10 of the company's brands (now owned by Kraft Foods Group Inc.) achieved sales of $500 million or more in 2011, while additional 17 brands (now owned by Mondelēz) posted sales of $100 million or more in 2011. Approx. 80 % of Kraft Foods Group's revenue comes from categories in which the company holds the No. 1 or No. 2 market position. Mondelēz (former Kraft Foods Inc.), which supposed to be a high-growth global snacks company with annual revenue of approx. $36 billion and leading brands including Cadbury, Jacobs, LU, Milka, Nabisco, Oreo,...
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