Kraft Foods spears new products to sustain growth
Nabisco cookies, will push funds behind 'fewer, bigger and better
new product ideas' to fuel sustainable growth.
In an overview of Kraft's growth product platforms, John Baxter, executive vice president, global category development at Kraft said the firm was investing behind product ideas such as cracker chips, the Tassimo hot beverage system, beverage stick packs and affordable cheese for developing markets.
Products "that can be successful around the world and provide Kraft with sustainable competitive advantage," he said.
As a source of funds, the maker of Philadelphia cream cheese said it projects new product revenues in 2005 to exceed $1.5 billion.
Among its star performers is the South Beach Diet line of products, which recently achieved $100 million in revenues after six months on the market.
Despite the upbeat tone, the firm also warned that "category weakness" due to higher retail prices and uncertainties in commodity costs continued to pose risks to this guidance.
"Significant challenges that are confronting the food industry this year, including higher-than-anticipated commodity costs, energy and packaging costs, and a highly competitive European marketplace," said Roger K. Deromedi, Kraft's Chief Executive Officer.
