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Sabine Peters-Halfbrodt EU Corporate & Public Affairs December 8th, 2009

Commitment to Sustainability

DelibProcessSCP Closing Conference Brussels, Blegium

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Who is Kraft Foods? •  One of the leading food companies in the world

•  $ 41.9 billion in revenue

•  98.000 employees and 168 plants worldwide

•  Wide product portfolio including snacks, chocolate & coffee

North America

Latin America Region

Kraft Foods Europe

Central & Eastern Europe,

Middle East & Africa Region

Asia Pacific Region

9 Brands with more than $1 billion in revenue

50+ Brands with more than $100 million in revenue

40+ Brands over 100 years old

An amazing brand portfolio.

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Why is Kraft Foods committed to sustainability? Forecast  Population growth  Average standard of living improves Consequences  Growing demand on limited

natural resources  Increase of emissions and pollution

Ambitious goals and status quo.

Base Year: 2005 All goals to be achieved by year end 2011

We are on track to meet or to exceed all our goals and to date have delivered roughly $150MM in productivity

Down 12% (actuals thru 2008)

Down 21% (actuals thru 2008)

116MM pounds out

(actuals thru 2008)

Down 14% (actuals thru 2008)

Down 14% (actuals thru 2008)

Today‘s focus: Agricultural Commodities.

Pioneer in sustainable coffee

Major collaboration with Rainforest Alliance

Significant brand & customer linkage

Expanding Rainforest Alliance programme to cocoa

Global programme to combat child labour in West Africa

Broader strategy includes energy, emissions, waste

Coffee and Cocoa.

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• Since the early 1990s: coffee and cocoa have been crisis-ridden commodities

• Some 50 to 100 million people worldwide depend on coffee and cocoa

• For more than 15 years, Kraft Foods has focused on working to improve agricultural production conditions in developing countries in Africa, Latin America and South Asia, focusing on commodities such as coffee and cocoa

Coffee and Cocoa.

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Collaborating with the Rainforest Alliance Good reasons for…

•  The Rainforest Alliance •  applies to all types and sizes of farms •  beneficial for farmers, workers and their families •  protecting water, soil and wildlife •  promotes biodiversity and helps to conserve eco-systems •  leads to better farm management with intended

farm health improvements and yield increases, better crop quality and reliable harvest volumes

•  The Rainforest Alliance Certified™ program matches highest standards towards sustainable agriculture and proved itself to be market-capable and competitive in the origins (supply and demand pricing model)

•  The 1st rigorous sustainability standard of the tropics

•  Means more than 20 years of experience on international level (FSC co-author)

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Purchasing of raw coffee from Rainforest Alliance Certified™ farms

Coffee.

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UK / Kenco example: Continuous improvements in coffee.

Complete power brand roll-out (Retail & AFH) 100% RAC

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Kenco Sustainable Development launch (Retail & AFH) 100% RAC

Kenco Pure launch (Retail) 100% RAC

Freeze-dried roll-out (Retail & AFH) 75% RAC

Freeze-dried roll-out (Retail & AFH) 100% RAC

Building sustainability into every aspect of Kenco.

Sales Transport & Warehousing Packaging Conversion Raw

Materials

Project Mocha – new ambient warehouse

100% sourced from Rainforest Alliance Certified

farms by 2010

Coffee grounds burnt for energy >30% Reduction in energy used

since 2000

Eco-Refill pack Project Cheshire

new formats AFH cup recycling

FSC (Sustainable) outer packs and POS

Genesis

Connecting consumers with

the farm Education

programme

Dedication to great sustainable coffee 13

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Purchasing of raw cocoa from Rainforest Alliance Certified™ farms

Cocoa.

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•  In 2005, we embarked on a 3-y development project in Côte d’Ivoire •  Partnering with internationally respected partners:

•  the Rainforest Alliance •  leading development organizations such as GTZ and USAID •  cocoa trader Armajaro

•  End of 2008: 2,000 farmers were awarded Rainforest Alliance Certified™ •  Harvest 2007/2008: premium generated additional 280,000 USD for all •  Yields improved, productivity increased significantly, sometimes 50% plus •  Incidents of “black pod” disease decreased up to one third

Sustainably farmed cocoa: Pioneering PPP initiative sets new standards.

Beginning in France and Belgium with 70% plus cocoa premium dark chocolates, Côte d’Or now contains at least 30% cocoa from Rainforest Alliance Certified™ farms

By end of 2012, the company will use only cocoa from Rainforest Alliance Certified™ farms in two major chocolate brands in Europe:

•  Côte d’Or •  Marabou

This equates to approx. 30,000 tons of cocoa beans on an annual basis

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First chocolate products containing cocoa from Rainforest Alliance Certified™ farms.

• Bill & Melinda Gates Foundation

• World Cocoa Foundation (WCF)

• Sustainable Tree Crops Program (STCP)

• Empowering Cocoa Households with Opportunities and Education Solutions (ECHOES)

Other initiatives.

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Fundamental co-operations in agricultural development.

In addition to and jointly with the Rainforest Alliance:

•  United States Agency for International Development (USAID)

•  Global Environment Facility (GEF)

•  United Nations Development Program (UNDP)

•  Deutsche Gesellschaft fuer Technische Zusammenarbeit (GTZ)

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