Jessica BowmanBrad KruegerReed Taylor

Krista GardnerLottie Slawson

Company FactsWorld’s second-largest food and beverage company

140,000 diverse employees worldwideHeadquarters – Northfield, Illinois

Approximately $50 billion in revenues

Sales in approximately 160 countriesOperations in more than 70 countries

80% revenue from #1 share positions

Eleven $1 billion brands

Eleven $1 Billion Brands

“Creating Smiles from Coast to Coast”

Manufacturing and Processing Facilities Worldwide

U.S.27%

Canada7%

European Union33%

Eastern Europe/Middle East/Africa

10%

Latin America11%

Asian Pacific11%

Mission StatementOur Vision...

“Helping people around the world eat and live better”

Our Guiding Principals...“Put consumers first, work simply; act quickly, and play to win”

Our Values...Innovation – satisfying real-life needs with unique ideasQuality – fulfilling a promise to deliver the bestSafety – ensuring high standards in everything we makeRespect – caring for people, communities and the environmentIntegrity – doing the right thingOpenness – listening to the ideas of others and encouraging an open dialogue

Company Strategies for SuccessBuild a high-performing organization

Reframe our categories

Exploit our sales capabilities

Drive down costs without compromising quality

Focal IndustryFood Industry Overall

Packaged consumer goods – major marketCompetitors – Nestle & Conagra Foods

Global Market Powerhouses – Oreo, Nabisco, Philadelphia cream cheese, Jacobs and Carte Noire coffees

Local Market – Kraft cheeses, dinners and dressings, Maxwell House coffees, Oscar Meyer meats

Customers – grocery stores, restaurants, wholesalersEnd Users – general publicPricing Structure – affordable; drive down costs without

compromising quality

The General Environment SegmentsEconomic – families are eating at home more

Demographic – 10 nationalities within top 30 leaders

Sociocultural – 34% women in management positionsCEO – Irene Rosenfeld

The General Environment SegmentsLegal/Political – increased government policy

Food safety requirements

Technological – Global Technology & Quality Group2,400 food scientists, chemists, and engineers

Intensity of Rivalry Among Competitors in an Industry

Nestle – world’s largest food company

Competes on basis of:Product quality, brand recognition, brand loyalty, price,

& etc. Kraft acquired Cadbury

Growth potential

The Threat of Substitutes

Store brands (private label products)

Similar but cheaper products

Kraft needs to maintain & improve their brand image

The Bargaining Power of BuyersWal-mart accounts for 16% of Kraft’s net revenue in 2008Reduce shelf spaceNo assurance of buying same large quantities as in the past

The Bargaining Power of Suppliers Kraft purchases dairy, meat, and raw materials

Supplied by independent third partiesKraft and their suppliers don’t have much control of prices

External factors – weather, trade barriers & government policy

The Threat of New Entrants

High barriers to entry Shelf space Economies of scale

Summary2nd largest food and beverage company

Stable industry structureAcquiring of Cadbury

Need to make products healthier Focus on health and wellness

Referenceswww.kraftfoodscompany.com

Yahoo! Finance

Business Week

Wikinvest.com

The Annual Reports Service – Kraft Annual Review

Questions??