Kraft sees growth picking up speed
Kraft Foods is confident that their turnaround strategy will position them for strong growth in coming years, with or without Cadbury.
The maker of Oreo and Vegemite began a corporate overhaul soon after the appointment of Chief Executive Irene Rosenfeld in 2006. This has seen a renewed focus on key markets and a pruning of underperforming brands. And Ms Rosenfeld is adamant that the strategies put in place are working and will see them make ground on their competitors.
“We’re now poised to deliver profit margins at or above industry averages and to consistently deliver against our long-term earnings target of seven to nine per cent growth,” she told delegates at the World Business Forum. “Now is the right time to accelerate our transformation, whether in combination with Cadbury, or on a stand-alone basis.”
“Either way, we’re ready to take that next step.”
The US-based food manufacturer has certainly not been missed by the media in the past month, as a takeover proposal to Cadbury and an ill-considered name choice for their new Vegemite spin-off in Australia have ensured days of no media coverage are few and far between.
Kraft must make a formal offer to Cadbury by November 9 or leave the confectioner alone for six months. Meanwhile, they have now named their new Vegemite product Cheesybite after a public vote.