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Kraft Foods Inc.

2009
Case Notes Prepared by: Dr. Mernoush Banton
Case Author: Kristopher J. Blanchard

A.

Case Abstract

Kraft Foods Inc. (www.Kraftfoodscompany.com) is a comprehensive strategic


management case that includes the companys calendar December 31, 2008 financial
statements, competitor information and more. The case time setting is the year
2009. Sufficient internal and external data are provided to enable students to
evaluate current strategies and recommend a three-year strategic plan for the
company. Headquartered in Northfield in the U.S. state of Illinois, Kraft Foods Inc. is
traded on the New York Stock Exchange under ticker symbol KFT.

B.

Vision Statement (Actual)

One company growing by nourishing lives and finding a better way today one bite at
a time.

C.

Mission Statement (Actual)

Make Today Delicious.

Mission Statement (Proposed)


As a global company (3), we pride ourselves in producing superior products and
services (2) to our customers. With superior technology (4) and dedicated employees
(9), we are constantly working on introducing new and innovative products, meeting
our customers expectation (6) and ensuring to achieve higher than expected return
to our shareholders (5). Our desire is to be the number one choice for our loyal
customers (7, 8).
1.
2.
3.
4.
5.
6.
7.
8.
9.

Customer
Products or services
Markets
Technology
Concern for survival, profitability, growth
Philosophy
Self-concept
Concern for public image
Concern for employees

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D.

External Audit

CPM Competitive Profile Matrix

Weight

Kraft
Weighted
Rating Score

Nestle
Weighted
Rating Score

ConAgra
Weighted
Rating Score

0.14

0.28

0.42

0.14

Global Expansion
Organizational
Structure

0.08

0.24

0.32

0.16

0.02

0.04

0.06

0.02

Employee Morale

0.03

0.09

0.06

0.03

Technology

0.08

0.24

0.32

0.16

Product Safety

0.11

0.11

0.33

0.22

Customer Loyalty

0.10

0.40

0.30

0.20

Market Share

0.08

0.24

0.32

0.16

Advertising

0.09

0.36

0.27

0.18

Product Quality

0.10

0.40

0.30

0.20

Product Image

0.11

0.44

0.33

0.22

Financial Position

0.06

0.18

0.24

0.12

Total

1.00

Critical Success
Factors
Price
competitiveness

3.02

3.27

Opportunities
1. More people are dining out, and food producers are devoting more attention
to products designed for restaurants, vending machines, and other
foodservice providers
2. Be able to sell to restaurants at a higher margin
3. Consumers are shifting toward food containing less trans fat or fewer calories,
or those containing only organic ingredients
4. Bottled water has become well established in the market and enhanced
waters containing vitamins or supplements are gaining popularity
5. Consumer prices for baked goods increased 10.7 percent in January 2009
compared to January 2008
6. Input costs for bakers, including commodities such as wheat, eggs, and
natural gas, have declined recently
7. The U.S. market for packaged and processed foods has seen large profits in
retail sales, and this number is expected to see steady growth
8. Worldwide, demand is also on the rise for packaged type of food as more
people adopt a lifestyle that includes less time for the preparation of food
9. The greatest asset of any retail and consumer product company is its
reputation and perceived value among consumers

Copyright 2011 Pearson Education Limited

1.81

Threats
1. Obesity is increasing drastically in both children and adults and accordingly
consumers are deviating from having snacks, cheeses and such
2. Rising costs of petroleum cause an increase in cost for companies in the food
industry and in the agriculture end
3. Food safety programs have been adopted recently as issues of chemical and
bacterial contamination and new food-borne pathogens remain a public health
concern
4. Because the industry is so competitive, it is difficult for these companies to
raise their prices accordingly, and profit margins have suffered as a result due
to weak economy and increase in unemployment, many consumers have
switched from brand name to generics
5. Due to increase in fuel charges, the cost of distribution can increase as well
6. Global warming becoming a major political issue and food producers are
simultaneously cast as perpetrator and potential healer
External Factor Evaluation (EFE) Matrix
Key External Factors

Weight

Rating

Weighted
Score

1. More people are dining out, and food producers


are devoting more attention to products
designed for restaurants, vending machines,
and other foodservice providers
2. Be able to sell to restaurants at a higher margin

0.06

0.24

0.07

0.21

3. Consumers are shifting toward food containing


less trans fat or fewer calories, or those
containing only organic ingredients
4. Bottled water has become well established in
the market and enhanced waters containing
vitamins or supplements are gaining popularity
5. Consumer prices for baked goods increased
10.7 percent in January 2009 compared to
January 2008
6. Input costs for bakers, included commodities
such as wheat, eggs, and natural gas, have
declined recently
7. The U.S. market for packaged and processed
foods has seen large profits in retail sales, and
this number is expected to see steady growth
8. Worldwide, demand is also on the rise for
packaged type of food as more people adopt a
lifestyle that includes less time for the
preparation of food
9. The greatest asset of any retail and consumer
product company is its reputation and
perceived value among consumer

0.07

0.14

0.07

0.21

0.06

0.18

0.04

0.08

0.09

0.36

0.09

0.27

0.06

0.18

Opportunities

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Threats
1.

Obesity is increasing drastically in both children


and adults and accordingly consumers are
deviating from having snacks, cheeses and
such
2. Rising costs of petroleum cause an increase in
cost for companies in the food industry and in
the agriculture end
3. Food safety programs have been adopted
recently as issues of chemical and bacterial
contamination and new food-borne pathogens
remain a public health concern
4. Because the industry is so competitive, it is
difficult for these companies to raise their
prices accordingly, and profit margins have
suffered as a result due to weak economy and
increase in unemployment, many consumers
have switched from brand name to generics
5. Due to increase in fuel, the cost of distribution
can increase as well
6. Global warming becoming a major political
issue and food producers are simultaneously
cast as perpetrator and potential healer
Total

0.08

0.24

0.09

0.36

0.07

0.28

0.04

0.16

0.06

0.18

0.05

0.1

1.00

3.19

Positioning Map
Price (High)

Nestle
Kraft
Foods Inc.
ConAgra
Brand
Loyalty
(Low)

Brand
Loyalty
(High)

Price (Low)

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E.

Internal Audit
Strengths
1. After two incidents of contamination, the company voluntarily recalled more
than 2 million pounds of nuts and has temporarily shut down its
manufacturing plants
2. Increase in sale in the developing international markets by 2 percent
3. The company operates in 5 different business segments: snacks, beverages,
cheese, grocery and convenient meals
4. Despite economic downturn, the companys revenues increased to US$42.2
billion 2008, while earnings increased to US$2.9 billion
5. Increase in current asset from 2007 to 2008 by almost US$600 million
6. Decrease in current liabilities by around US$6 billion from 2007 to 2008
7. Kraft sells over 100 different brand names
Weaknesses
1. Workers at one of Krafts manufacturers in Illinois turned up a batch of fruits
and nuts that were contaminated with salmonella in December 2007 with a
similar incident in September 2008
2. Drop in sales in the companys snack division from 2007 to 2008 by 2.30
percent
3. Drop in sales in the European Union market by 4.1 percent from 2007 to 2008
4. Despite 9.8 percent increase in price, Kraft Foods lost 0.3 percent market
share during 2008
5. The company has over US$27.5 billion in Goodwill
6. Increase in long-term debt by about 50 percent in 2008 from 2007
7. No new innovative product introduction in recent years
8. New CEO in 2006

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Financial Ratio Analysis (December 2009)


Growth Rates %

Kraft

Industry

S&P 500

Sales (Qtr vs year ago qtr)

-5.70

-3.30

-4.80

Net Income (YTD vs YTD)

33.00

20.70

-6.00

Net Income (Qtr vs year ago qtr)

59.40

17.90

26.80

Sales (5-Year Annual Avg.)

6.71

6.41

12.99

Net Income (5-Year Annual Avg.)

-11.36

-5.09

12.69

Dividends (5-Year Annual Avg.)

11.16

10.54

11.83

Price Ratios

Kraft

Industry

S&P 500

Current P/E Ratio

16.8

18.6

26.7

P/E Ratio 5-Year High

NA

5.7

16.6

P/E Ratio 5-Year Low

NA

1.6

2.6

Price/Sales Ratio

1.00

1.05

2.25

Price/Book Value

1.60

2.87

3.48

Price/Cash Flow Ratio

12.20

12.10

13.70

Profit Margins %

Kraft

Industry

S&P 500

Gross Margin

34.5

31.1

38.9

Pre-Tax Margin

8.2

8.9

10.3

Net Profit Margin

6.0

6.4

7.1

5Yr Gross Margin (5-Year Avg.)

34.9

33.5

38.6

5Yr PreTax Margin (5-Year Avg.)

9.9

9.7

16.6

5Yr Net Profit Margin (5-Year Avg.)

7.1

6.8

11.5

Financial Condition

Kraft

Industry

S&P 500

Debt/Equity Ratio

0.82

1.16

1.09

Current Ratio

1.1

1.2

1.5

Quick Ratio

0.7

0.7

1.3

Interest Coverage

3.7

8.9

23.7

Leverage Ratio

2.7

3.2

3.4

Book Value/Share
Adapted from www.moneycentral.msn.com

17.02

8,096.92

21.63

12/08

Avg P/E

Price/ Sales

Price/ Book

Net
Profit
Margin (%)

24.80

0.96

1.78

4.4

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12/07

22.60

1.44

1.83

6.5

12/06

18.80

1.78

2.05

8.5

12/05

18.30

1.40

1.59

8.5

12/04

20.70

1.90

2.03

8.3

12/03

15.80

1.83

1.94

11.1

12/02

20.40

2.31

2.61

11.3

12/01

27.90

1.87

2.51

6.4

12/00

NA

NA

NA

8.7

12/08

24.80

0.96

1.78

4.4

Book Value/ Debt/


Share
Equity

Return
Equity (%)

12/08

$15.11

0.91

8.3

2.9

3.0

12/07

$17.80

0.77

8.6

3.5

5.4

12/06

$17.45

0.36

9.9

5.1

6.8

12/05

$17.72

0.36

9.8

5.0

7.2

12/04

$17.54

0.41

8.9

4.5

6.8

12/03

$16.57

0.45

11.8

5.7

8.9

12/02

$14.93

0.52

12.8

5.8

7.0

12/01

$13.53

0.61

8.0

3.4

3.4

12/00

$9.65

1.78

14.2

3.8

6.5

2.9

3.0

12/08
$15.11
0.91
8.3
Adapted from www.moneycentral.msn.com

on Return
on Interest
Assets (%)
Coverage

Internal Factor Evaluation (IFE) Matrix


Key Internal Factors
Strengths
1. After two incidents of contamination, the
company voluntarily recalled more than 2 million
pounds of nuts and has temporarily shut down
its manufacturing plants

Weight

Rating

Weighted
Score

0.06

0.18

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0.08

0.32

0.06

0.24

0.08

0.32

0.08

0.32

0.08

0.32

0.05

0.15

Workers at one of Krafts manufacturers in


Illinois turned up a batch of fruits and nuts that
were contaminated with salmonella in December
2007 with a similar incident in September 2008
2. Drop in sales in the company's snack division
from 2007 to 2008 by 2.30 percent
3. Drop in sales in the European Union market by
4.1 percent from 2007 to 2008
4. Despite 9.8 percent increase in price, Kraft
Foods lost 0.3 percent market share during 2008

0.06

0.06

0.07

0.07

0.06

0.12

0.06

0.12

5. The company has over US$27.5 billion in


Goodwill
6. Increase in long-term debt by about 50 percent
in 2008 from 2007
7. No new innovative product introduction in recent
years
8. New CEO in 2006

0.06

0.06

0.07

0.07

0.09

0.09

0.04

0.08

Total

1.00

2. Increase in sale in the developing international


markets by 2 percent
3. The company operates in 5 different business
segments: snacks, beverages, cheese, grocery
and convenient meals
4. Despite economic downturn, the company's
revenues increased to US$42.2 billion 2008,
while earnings increased to US$2.9 billion
5. Increase in current asset from 2007 to 2008 by
almost US$600 million
6. Decrease in current liabilities by around US$6
billion from 2007 to 2008
7. Kraft sells over 100 different brand names
Weaknesses
1.

F.

2.52

SWOT Strategies
Strengths
1. After two incidents of
contamination, the
company voluntarily
recalled more than 2
million pounds of nuts
and has temporarily
shut down its

Weaknesses
1. Workers at one of
Krafts manufacturers
in Illinois turned up a
batch of fruits and nuts
that were contaminated
with salmonella in
December 2007 with a

Copyright 2011 Pearson Education Limited

manufacturing plants
2. Increase in sale in the
developing
international markets
by 2 percent
3. The company operates
in 5 different business
segments: snacks,
beverages, cheese,
grocery and convenient
meals
4. Despite economic
downtime, the
companys revenues
increased to US$42.2
billion 2008, while
earnings increased to
US$2.9 billion
5. Increase in current
asset from 2007 to
2008 by almost
US$600 million
6. Decrease in current
liabilities by around
US$6 billion from 2007
to 2008
7. Kraft sells over 100
different brand names

2.

3.

4.

5.
6.

7.
8.

similar incident in
September 2008
Drop in sales in the
companys snack
division from 2007 to
2008 by 2.30 percent
Drop in sales in the
European Union market
by 4.1 percent from
2007 to 2008
Despite 9.8 percent
increase in price, Kraft
Foods lost 0.3 percent
market share during
2008
The company has over
US$27.5 billion in
Goodwill
Increase in long-term
debt by about 50
percent in 2008 from
2007
No new innovative
product introduction in
recent years
New CEO in 2006

Opportunities

S-O Strategies

W-O Strategies

1. More people are dining


out, and food
producers are devoting
more attention to
products designed for
restaurants, vending
machines, and other
foodservice providers
2. Be able to sell to
restaurants at a higher
margin
3. Consumers are shifting
toward food containing
less trans fat or fewer
calories, or those
containing only organic
ingredients
4. Bottled water has
become well
established in the
market and enhanced
waters containing

1. Develop a new product


line, focusing on
organic ingredients
(O3, O6, S4, S5, S7)
2. Acquire a small
competitor that sells to
restaurants and / or
intermediary channels
(O1, O2, O6, O8, S2,
S3)

1. Improve the quality by


educating the workers
on how to test and
sample products before
they are shipped (W1,
O9)

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5.

6.

7.

8.

9.

vitamins or
supplements are
gaining popularity
Consumer prices for
baked goods increased
10.7 percent in
January 2009
compared to January
2008
Input costs for bakers,
included commodities
such as wheat, eggs,
and natural gas, have
declined recently
The U.S. market for
packaged and
processed foods has
seen large profits in
retail sales, and this
number is expected to
see steady growth
Worldwide, demand is
also on the rise for
packaged type of food
as more people adopt
a lifestyle that includes
less time for the
preparation of food
The greatest asset of
any retail and
consumer product
company is its
reputation and
perceived value among
consumers

Threats

S-T Strategies

W-T Strategies

1. Obesity is increasing
drastically in both
children and adults and
accordingly consumers
are deviating from
having snacks, cheeses
and such
2. Rising costs of
petroleum cause an
increase in cost for
companies in the food
industry and in the
agriculture end
3. Food safety programs
have been adopted

1. Improve distribution in
European market with
new and innovative
organic products (S2,
S3, S4, S5, T1, T2, T3)
2. Open additional small
distribution center in
Europe and other
regions where sales
are increasing in order
to reduce distribution
costs (S2, S3, S7, O1,
O2, O8)

1. Implement a better
quality control
internally and with
suppliers to reduce
food contamination
(W1, T3, T6)
2. Discontinue products in
snack division that are
not selling (W2, W4,
T1, T2, T5, T6)

Copyright 2011 Pearson Education Limited

recently as issues of
chemical and bacterial
contamination and new
food-borne pathogens
remain a public health
concern
4. Because the industry is
so competitive, it is
difficult for these
companies to raise
their prices
accordingly, and profit
margins have suffered
as a result due to weak
economy and increase
in unemployment,
many consumers have
switched from brand
name to generics
5. Due to increase in fuel
charges, the cost of
distribution can
increase as well
6. Global warming
becoming a major
political issue and food
producers are
simultaneously cast as
perpetrator and
potential healer

Copyright 2011 Pearson Education Limited

G.

SPACE Matrix

FS
Conservative

Aggressive

7
6
5
4
3
2
1

CS

IS
-7

-6

-5

-4

-3

-2

-1

-1
-2
-3
-4
-5
-6

Competitive

-7

Defensive

ES
Financial Stability (FS)
Return on Investment
Leverage
Liquidity
Working Capital
Cash Flow

3
1
4
4
4

Environmental Stability (ES)


Unemployment
Technological Changes
Price Elasticity of Demand
Competitive Pressure
Barriers to Entry

-5
-3
-2
-4
-4

Financial Stability (FS) Average

3.2

Environmental Stability (ES) Average

-3.6

Competitive Stability (CS)


Market Share
Product Quality
Customer Loyalty
Competitions Capacity Utilization
Technological Know-How

-2
-3
-3
-4
-4

Industry Stability (IS)


Growth Potential
Financial Stability
Ease of Market Entry
Resource Utilization
Profit Potential

5
3
4
4
4

Competitive Stability (CS) Average

-3.2

Industry Stability (IS) Average

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Y-axis: FS + ES = 3.2 + (-3.6) = -0.4


X-axis: CS + IS = (-3.2) + (4.0) = 0.8

H.

Grand Strategy Matrix


Rapid Market Growth
QuadrantI

QuadrantII

Strong
Competitive
Position

Weak
Competitive
Position

QuadrantIII

1.
2.
3.
4.
5.
6.
7.

Slow Market Growth

Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Related diversification

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QuadrantIV

I.

The Internal-External (IE) Matrix


The IFE Total Weighted Score
Strong
3.0 to 4.0
I

High
3.0 to
3.99

The EFE
Total
Weighted
Score

Average
2.0 to 2.99
II

Weak
1.0 to 1.99
III

Kraft Foods Inc.

IV

IV

VI

VII

VIII

IX

Medium
2.0 to
2.99

Low
1.0 to
1.99

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J.

QSPM

Key Factors
Opportunities
1. More people are dining out, and food
producers are devoting more attention to
products designed for restaurants,
vending machines, and other foodservice
providers
2. Be able to sell to restaurants at a higher
margin
3. Consumers are shifting toward food
containing less trans fat or fewer calories,
or those containing only organic
ingredients
4. Bottled water has become well established
in the market and enhanced waters
containing vitamins or supplements are
gaining popularity
5. Consumer prices for baked goods
increased 10.7 percent in January 2009
compared to January 2008
6. Input costs for bakers, included
commodities such as wheat, eggs, and
natural gas, have declined recently
7. The U.S. market for packaged and
processed foods has seen large profits in
retail sales, and this number is expected
to see steady growth
8. Worldwide, demand is also on the rise for
packaged type of food as more people
adopt a lifestyle that includes less time for
the preparation of food
9. The greatest asset of any retail and
consumer product company is its
reputation and perceived value among
consumer
Threats
1. Obesity is increasing drastically in both
children and adults and accordingly
consumers are deviating from having
snacks, cheeses and such
2. Rising costs of petroleum cause an

Weight

Develop a
new product
line,
focusing on
organic
ingredients
AS
TAS

Acquire a
small
competitor
that sells to
restaurants
and / or
intermediary
channels
AS
TAS

0.06

0.12

0.24

0.07

0.07

0.28

0.07

0.28

0.07

0.07

---

---

---

---

0.06

---

---

---

---

0.04

---

---

---

---

0.09

0.27

0.09

0.09

0.36

0.18

0.06

0.24

0.06

0.08

0.32

0.08

0.09

0.27

0.18

Copyright 2011 Pearson Education Limited

increase in cost for companies in the food


industry and in the agriculture end
3. Food safety programs have been adopted
recently as issues of chemical and
bacterial contamination and new foodborne pathogens remain a public health
concern
4. Because the industry is so competitive, it
is difficult for these companies to raise
their prices accordingly, and profit
margins have suffered as a result due to
weak economy and increase in
unemployment, many consumers have
switched from brand name to generics
5. Due to increase in fuel, the cost of
distribution can increase as well
6. Global warming becoming a major political
issue and food producers are
simultaneously cast as perpetrator and
potential healer
TOTAL
Strengths
1. After two incidents of contamination, the
company voluntarily recalled more than 2
million pounds of nuts and has
temporarily shut down its manufacturing
plants
2. Increase in sale in the developing
international markets by 2 percent
3. The company operates in 5 different
business segments: snacks, beverages,
cheese, grocery and convenient meals
4. Despite economic downtime, the
company's revenues increased to US$42.2
billion 2008, while earnings increased to
US$2.9 billion
5. Increase in current asset from 2007 to
2008 by almost US$600 million
6. Decrease in current liabilities by around
US$6 billion from 2007 to 2008
7. Kraft sells over 100 different brand names
Weaknesses
1. Workers at one of Krafts manufacturers in
Illinois turned up a batch of fruits and
nuts that were contaminated with
salmonella in December 2007 with a
similar incident in September 2008
2. Drop in sales in the company's snack
division from 2007 to 2008 by 2.30
percent
3. Drop in sales in the European Union

0.07

---

---

---

---

0.04

0.04

0.08

0.06

0.06

0.18

0.05

---

---

---

---

1.00

2.03

1.44

0.06

---

---

---

---

0.08

0.24

0.08

0.06

0.24

0.18

0.08

---

---

---

---

0.08

---

---

---

---

0.08

---

---

---

---

0.05

0.2

0.1

0.06

---

---

---

---

0.07

0.21

0.07

0.06

0.24

0.12

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market by 4.1 percent from 2007 to 2008


4. Despite 9.8 percent increase in price,
Kraft Foods lost 0.3 percent market share
during 2008
5. The company has over US$27.5 billion in
Goodwill
6. Increase in long-term debt by about 50
percent in 2008 from 2007
7. No new innovative product introduction in
recent years
8. New CEO in 2006
SUBTOTAL
SUM TOTAL ATTRACTIVENESS SCORE

K.

0.06

---

---

---

---

0.06

---

---

---

---

0.07

0.28

0.14

0.09

0.36

0.18

0.04
1.00

---

--1.77
3.8

---

--0.87
2.31

Recommendations
Develop a series of products mainly made with organic products and are
healthy in nature by having low carb, low saturated fat and sugar. Introduce
the new product under its own business unit in case the company decides to
expand its line or sell it off.

L.

EPS/EBIT Analysis
US$ Amount Needed: $100 million
Stock Price: US$27.18
Tax Rate: 28.2%
Interest Rate: 6.17% (Average Effective Rate)
# Shares Outstanding: 1.5 billion

EBIT
Interest
EBT
Taxes
EAT
#
Shares
EPS

EBIT
Interest
EBT
Taxes

Common Stock
Recession
$3,800,000,00
0
0
3,800,000,000
1,071,600,000
2,728,400,000
1,503,679,176
1.81

Debt Financing

Financing
Normal
$4,000,000,00
0
0
4,000,000,000
1,128,000,000
2,872,000,000

Boom
$4,500,000,00
0
0
4,500,000,000
1,269,000,000
3,231,000,000

Recession
$3,800,000,00
0
6,170,000
3,793,830,000
1,069,860,060
2,723,969,940

Normal
$4,000,000,00
0
6,170,000
3,993,830,000
1,126,260,060
2,867,569,940

Boom

1,503,679,176
1.91

1,503,679,176
2.15

1,500,000,000
1.82

1,500,000,000
1.91

1,500,000,000
2.15

70 Percent Stock - 30 Percent Debt


Recession
Normal
Boom
$3,800,000,00
$4,000,000,00
$4,500,000,00
0
0
0
4,936,000
4,936,000
4,936,000
3,795,064,000
3,995,064,000
4,495,064,000
1,070,208,048
1,126,608,048
1,267,608,048

$4,500,000,000
6,170,000
4,493,830,000
1,267,260,060
3,226,569,940

70 Percent Debt - 30 Percent Stock


Recession
Normal
Boom
$3,800,000,00
$4,000,000,00
0
0
$4,500,000,000
1,234,000
1,234,000
1,234,000
3,798,766,000
3,998,766,000
4,498,766,000
1,071,252,012
1,127,652,012
1,268,652,012

Copyright 2011 Pearson Education Limited

EAT
#
Shares
EPS

2,724,855,952

2,868,455,952

3,227,455,952

2,727,513,988

2,871,113,988

3,230,113,988

1,502,575,423
1.81

1,502,575,423
1.91

1,502,575,423
2.15

1,501,103,753
1.82

1,501,103,753
1.91

1,501,103,753
2.15

M.

Epilogue

Recently, Kraft announced that they will be cutting the salt in its products sold in
North America by an average of 10 percent over the next two years. This decision
was based on consumers demanding healthier products and better ingredients in the
food they consume. Kraft is planning to complete the reduction of salt over the next
two years.
Kraft also has made an offer to acquire Cadbury which many analysts have rated as
a positive move on behalf of Kraft Foods, Inc. and accordingly, the stock price was
raised by US$3 from $33 to $36.

Copyright 2011 Pearson Education Limited