Kraft to portion control
Kraft Foods has outlined plans to cut portion sizes to help deal with rising food costs.
They announced, in the wake of a fall in quarterly profit, that they are to begin producing new products in smaller portions as they seek to maintain sales in difficult economic conditions.
A 13% fall in profit by the company was reported last week and was blamed primarily on the high cost of food commodities like wheat. Their news followed profit guidelines from McDonald’s, which suggested that the cost of food was starting to impact on food retailers profits.
Kraft Chief Executive Irene Rosenfeld indicated Kraft were attempting to provide products that would have lower costs associated with them. “Without a doubt, we are focused on the opportunities to lower the dollar outlay, particularly in developing markets but also in developed markets,”she was quoted as saying in The Times.
With food prices rising significantly, similar announcements from other food manufacturers may not be too far away.