Kraft Foods (NYSE:KFT), which will spin-off into North American Grocery division and Global Snacks division this year, issued $800 million of floating-rate notes in the first week of January before it starts its spinoff. Although the company has made strategically sound moves recently including forging a relationship with SodaStream to enter into the carbonated drinks segment, the debt levels may stymie the growth prospects. Furthermore, the debt getting disproportionately transferred to one of the divisions will be detrimental for the respective division. Kraft competes with players like PepsiCo (NYSE:PEP), General Mills (NYSE:GIS) and Kellogg (NYSE:K).
Articles for Kraft Foods
Kraft Updates: Debt Issues Pre-Spinoff, Enters Carbonated Drinks Market
Graph ItNEW!Tuesday, January 10th, 2012 by Trefis Team
Kraft Sweetens Up its Focus on Chocolates
Graph ItNEW!Wednesday, January 4th, 2012 by Trefis Team
With Cadbury now in the bag, Kraft Foods (NYSE:KFT) looks to leverage its presence in the U.K. and India with an increased focus on chocolates. The company is investing significantly in manufacturing and marketing in these two countries. Kraft competes with players like PepsiCo (NYSE:PEP), General Mills (NYSE:GIS), Nestle S.A. and Kellogg (NYSE:K). As per our estimations, Chocolate, Gum & Candy is the most important segment and contributes more than 23% to the overall stock price.
Kraft May See Some Margin Relief if Commodity Prices Soften
Graph ItNEW!Wednesday, December 21st, 2011 by Trefis Team
Kraft (NYSE:KFT), the world’s second-largest food company after Nestle (OTC:NSRGY), may see pressure on its profit margins ease as wheat stocks hit their highest level in a decade, triggering a further slide in prices. Kraft and its competitors, such as General Mills (NYSE:GIS) and Pepsico (NYSE:PEP) have been grappling with record high input prices at a time of sluggish economic growth, making companies reluctant to pass on higher prices to cost-conscious consumers.
In November, the International Grains Council’s GOI Index dropped by 16 points, or 6% to a 13 month low. Abundant supplies of wheat and strong competition from exporters, including Argentina and Australia, have pushed shipping prices down by about $20 to $30 over the past month.
The slide in prices is forecast to continue, with the second largest world wheat crop ever and ample carry over stocks. Prices have fallen 35% from a 29-month high of $9.1675 a bushel in February and will drop 11% more to $5.30 in the next 12 months, Credit Suisse Group AG forecasts.
Kraft’s Sampling Machines a Nice Form of Advertising, Market Research
Graph ItNEW!Tuesday, December 20th, 2011 by Trefis Team
Kraft Foods (NYSE:KFT) has taken a step further in its marketing efforts by rolling out its much-awaited sampling machine in Chicago. The machine dispenses out the mousse-like dessert called Temptations by Jell-O after it does a facial screening to determine if the customer if is an adult or a child. This initiative will help Kraft attract more buyers and also give it more information about sex and age of its customers, which is valuable for launching new products. Free sampling products will only be available to adults for now, and the company will eventually extend this concept to its full range of products. Kraft competes with players like PepsiCo (NYSE:PEP), General Mills (NYSE:GIS) and Kellogg (NYSE:K).
Kraft Changes Marketing Strategy for Philadelphia Cream Cheese
Graph ItNEW!Monday, December 19th, 2011 by Trefis Team
Kraft Foods (NYSE:KFT) has revived the growth of it’s Philadelphia Cream Cheese brand by marketing as a recipe ingredient. The 131-year old brand with $1.7 billion in global sales has clocked an annual growth of 15% this year, double of what it was last year. The company launched marketing campaigns in Europe focusing on how Philly could be used as a cooking ingredient, in addition to being used as a spread. Recent surveys show that the percentage of consumers using Philly as a recipe ingredient in U.K has doubled to more than 37% now. The company now hopes to emulate its European success here in U.S. Kraft currently competes with players like PepsiCo (NYSE:PEP), General Mills (NYSE:GIS) and Kellogg (NYSE:K).
We currently estimate a $34.60 price for Kraft Foods, which is 5% below the current market price.
Kraft Split No Guarantee of a Success, Too Early to Assess Impact
Graph ItNEW!Monday, December 12th, 2011 by Trefis Team
Kraft Foods (NYSE:KFT), which left the investors baffled when it announced that the company will split into two earlier in August this year, named the Chief Executives for the two yet to be named companies on Monday. Irene Rosenfeld, who is the current CEO of Kraft Foods, will head the Global Snacks Division whereas Anthony Vernon, executive vice president and president of Kraft North America, will head the North American Grocery Division. The spin-off is expected to be complete by the end of next year. Kraft currently competes with players like PepsiCo (NYSE:PEP), General Mills (NYSE:GIS) and Kellogg (NYSE:K). Read More »
Kraft’s Split Could Improve Focus, Unlock Value
Graph ItNEW!Thursday, December 8th, 2011 by Trefis Team
Kraft Foods (NYSE: KFT), which announced in early August that it would be dividing into two separate companies, announced on Monday the newly-appointed CEO and Chairman for both of the new divisions. Irene Rosenfeld, who has been CEO of Kraft since 2006 and Chairman since 2007 will head the new Global Snacks business. Tony Vernon, currently President of Kraft Foods, North America, will be the CEO of the new North American Grocery Business. He will be joined by John Cahill from private equity firm Ripplewood Holdings as Non-Executive Chairman.
A quick look at the Trefis breakdown for the company can help us determine the potential impact of this proposed split.
Kraft Eyes Growth in Snacks with MilkBite: One of its Big Bets for 2012
Graph ItNEW!Wednesday, December 7th, 2011 by Trefis Team
Kraft Foods (NYSE:KFT) plans to launch the first of its kind milk-and-granola bar, called MilkBite, early next year. Droga5 was chosen as the creative agency for launch. The company plans national launch in January 2012 which will include TV ads, digital, social media, sampling and in store marketing. The company has characterized the product to be one of its ‘Big Bets’ for 2012. Kraft currently competes with players like PepsiCo (NYSE:PEP), General Mills (NYSE:GIS) and Kellogg (NYSE:K).
We estimate a $34.60 price for Kraft Foods, which is 5% below the current market price.
Kraft Betting on New Products: Caffeinated Energy Drink, Breakfast Bars
Graph ItNEW!Monday, December 5th, 2011 by Trefis Team
Riding high on the success of MiO water enhancer, Kraft Foods (NYSE:KFT) is all set to launch products in the energy drink and breakfast food sector. In the energy drink sector, Kraft will be directly competing against 5 Hour energy, Red Bull, PepsiCo (NYSE:PEP) and Coca Cola Co (NYSE:KO) whereas in the breakfast food category, it will be up against Kellogg (NYSE:K) and General Mills (NYSE:GIS).
We estimate a $35 price for Kraft Foods, which is in line with the market price.
Kraft Makes Quick Gains in India Snacks Market
Graph ItNEW!Tuesday, November 22nd, 2011 by Trefis Team
Kraft Foods (NYSE: KFT) believes India will play a pivotal role in the overall growth of the company. Kraft is present in India through Cadbury PLC, Oreo cookies and Tang Powder and competes locally against Nestle, Britannia, Parle in the chocolate and snacks category as well as against PepsiCo (NYSE:PEP) and Coca Cola Co (NYSE:KO) in the beverage category.
We have a $35 price estimate for Kraft Foods, which is currently in line with the market price
Kraft Foods : All Articles
- Week of 2012-01-08
- Week of 2012-01-01
- Week of 2011-12-18
- 12/21/11 Kraft May See Some Margin Relief if Commodity Prices Soften
- 12/20/11 Kraft’s Sampling Machines a Nice Form of Advertising, Market Research
- 12/19/11 Kraft Changes Marketing Strategy for Philadelphia Cream Cheese
- Week of 2011-12-11
- Week of 2011-12-04
- 12/08/11 Kraft’s Split Could Improve Focus, Unlock Value
- 12/07/11 Kraft Eyes Growth in Snacks with MilkBite: One of its Big Bets for 2012
- 12/05/11 Kraft Betting on New Products: Caffeinated Energy Drink, Breakfast Bars
- Week of 2011-11-20
- Week of 2011-11-13
- Week of 2011-07-03
- Week of 2011-06-12
- Week of 2011-05-22
- Week of 2011-04-24
- Week of 2011-03-27
- 03/30/11 Starbucks Gains from Selling Packaged Coffee for Keurig Machines
- 03/29/11 Downside to Starbucks from Increasing Packaged Coffee Prices
- 03/29/11 Downside to Kraft if High Coffee Prices Persist
- Week of 2011-03-20
- Week of 2011-02-27
- Week of 2011-02-20
- Week of 2011-02-13
- Week of 2011-02-06
- 02/10/11 Rising Food Costs Could Strain Unilever’s Grocery Share
- 02/09/11 Emerging Markets Drive Kraft’s Chocolate & Candy Market Share
- Week of 2011-01-30
- Week of 2011-01-16
- Week of 2011-01-02
- Week of 2010-12-26
- Week of 2010-12-05
- Week of 2010-11-14
- Week of 2010-09-19
- Week of 2010-08-01
- Week of 2010-07-18
- Week of 2010-06-27