Kraft Makes Quick Gains in India Snacks Market

KFT: Kraft Foods logo
Kraft Foods

Kraft Foods (NYSE: KFT) believes India will play a pivotal role in the overall growth of the company. [1] 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

See our full analysis for Kraft here

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Already we see Oreo cookies eating up the market share of its rivals in the $1.1 billion Indian cream biscuit segment, just 6 months after its launch. [2] The cookies now command a market share of 6%. The company is looking to further launch new products by using Cadbury’s existing distribution network.

According to Irene Rosenfeld, the Chief Executive of the company, growth in India was exceptional, with sales growing at almost 40% year to date. Ms. Rosenfeld also said that the company has increased investment in key areas such as R&D, advertising and capacity addition by around 70% since its purchase of Cadbury India business. [1]

Understand how a company’s products impact its stock price at Trefis.

  1. Kraft: Expect India to Account Significantly in Overall Growth, November 22, 2011 [] []
  2. Oreo eats into market share of Britannia, Parle, ITC, CNBC TV-18, November 21 []