Kraft Foods 518715 224034848 2008-07-07T00:52:42Z 68.3.113.13 Correction of state name {{Infobox Company | company_name = Kraft Foods Inc. | company_logo = [[Image:Kraft.SVG|255px|Kraft Foods Logo]] | company_type = [[Public company|Public]] ({{nyse|KFT}}) | | foundation = 1903 | location = [[Northfield, Illinois]], [[United States|USA]] | key_people = [[Irene Rosenfeld]], CEO | industry = [[Food Processing]] [http://finance.google.com/finance?q=kraft&hl=en] | products = [[Kraft Foods#Brands|See brands listing.]] | revenue = {{profit}} $37.241 Billion [[United States dollar|USD]] (2007) |net_income = {{profit}} $2.590 Billion (2007) <br/>7.0% [[profit margin]] | num_employees = 103,000 ([[December 13]], [[2007]]) | homepage = [http://www.kraft.com/ www.kraft.com] }} '''Kraft Foods Inc.''' ({{nyse|KFT}}) is the second-largest [[food]] and [[beverage]] company headquartered in [[North America]] (behind [[PepsiCo]]) and the third largest in the world (after [[Nestlé|Nestlé SA]] and [[PepsiCo]]). The Philip Morris Company (now known as [[Altria Group]]), acquired Kraft for $12.9 billion in 1988, eventually merging it with another food subsidiary, '''[[General Foods]]''', which it had acquired in 1985. In 2000, [[Philip Morris]] acquired '''[[Nabisco]]''' and merged it with Kraft. Altria sold 280 million Kraft shares via an initial public offering in 2001, retaining an 88.1% stake. On [[January 31]], [[2007]], after months of speculation, the company announced that its 88.1% stake would be spun off to Altria shareholders at the end of March 2007. Kraft is now an independent publicly held company. Kraft is headquartered in [[Northfield, Illinois]], [[United States|USA]], a [[Chicago]] suburb. Kraft Foods markets many popular brands in more than 155 countries. Kraft Foods is named after [[James L. Kraft]], who founded the original [[wholesale]] [[cheese]] business in 1903. ==History== James L. Kraft started a wholesale door-to-door cheese business in Chicago in 1903; its first year of operations was "dismal", losing $3,000 and a horse. Still, the business took hold and Kraft was joined by his four brothers to form J.L. Kraft and Bros. Company in 1909. As early as 1911, circulars and advertisements were in use by the company. In 1912, the company established its New York headquarters to prepare for its international expansion. By 1914, 31 varieties of cheeses were being sold around the United States, due to heavy product development, expansion by marketing, and opening a wholly-owned cheese factory in Illinois.<ref name="kficompany">{{cite web |url= https://www.fundinguniverse.com/company-histories/Kraft-Foods-Inc-Company-History.html|title= Kraft Foods' Company History|accessdate= 2008-03-10|date= 2002|publisher= ''Funding Universe''}}</ref> In 1915, the company had invented [[pasteurized]] [[processed cheese]] that didn't need [[refrigeration]], thus giving a longer shelf life than conventional cheese.<ref name="kficompany"/> The process was patented in 1916 and about six million pounds of the product were sold to the [[U.S. Army]] for military rations during [[World War I]]. In 1919, the company began national advertising and had made its first acquisition: a Canadian cheese company.<ref name="kficompany"/> In 1924, the company changed its name to Kraft Cheese Company and went public.<ref name="kficompany"/> Kraft had established its London and Hamburg sales offices (its first forays outside North America) in 1927. In 1928, it acquired Phenix Cheese Company makers of [[Philadelphia cream cheese]] and changed its name to Kraft-Phenix Cheese Company; it had captured 40 percent of the cheese market in the United States by 1930. Kraft also began operating in Australia following a merger with [[Fred Walker (entrepreneur)|Fred Walker & Co]].<ref name="kficompany"/> The same year (1930), [[National Dairy Products Corporation]] - makers of [[Breyers]] ice cream and [[Breakstone's]] cottage cheese and sour cream - acquired Kraft-Phenix.<ref name="kficompany"/> During these years, Kraft's product lines were diversified from cheese to salad dressings, caramels, [[Kraft Dinner|macaroni and cheese dinners]] and [[Parkay|margarines]]. In 1933, the company began marketing by radio sponsorship. In 1935, [[Sealtest]] ice cream was launched.<ref name="kficompany"/> During [[World War II]], Kraft Cheese Company sent four million pounds of cheese to Britain weekly.<ref name="kficompany"/> By 1945, Kraft changed its name to Kraft Foods Company as its product lines had diversified. Product development and advertising helped the company to grow during the postwar years, launching sliced process cheese and [[Cheez Whiz|process cheese sauce]] in the 50's. During these years, National Dairy's owner [[Thomas McInnerney]] and Kraft's founder [[James L. Kraft]] died, and at the end of the decade, the divisions became less autonomous and even diversified to the glass packaging business with the acquisition of Metro Glass in 1956.<ref name="kficompany"/> In 1947 Kraft tested the marketing power of the emerging medium of [[television]] by producing the hour-long drama program the ''[[Kraft Television Theatre]]''. The product advertised on the program, McLaren’s Imperial Cheese, was selected because "... [it had] not only had no advertising appropriation whatsoever, but had not even been distributed for several years." The result as described by internal documents of [[J. Walter Thompson]], the advertising firm which conceived of the marketing test, was “although there was no other advertising support for it whatsoever, still grocery stores could not keep up with the demand.”<ref name="'Kraft’-ing a Durable Business Model">{{cite web |url= http://www.tvweek.com/news/2008/04/krafting_a_durable_business_mo.php|title= 'Kraft’-ing a Durable Business Model|accessdate= 2008-06-1|date= 2008-04-27|publisher= ''TV Week''}}</ref> In the 60's, product development became intense, launching jellies, preserves, [[marshmallows]], barbecue sauces and [[Kraft Singles|individually-wrapped cheese slices]].<ref name="kficompany"/> It is also during this decade that the company expanded in many markets worldwide. In 1969, [[National Dairy Products Corporation|National Dairy]] became Kraftco Corporation and transferred to [[Glenview, Illinois]] in 1972.<ref name="kficompany"/> In 1976, its name changed to Kraft, Inc. to emphasize the trademark the company had been known for. Reorganization also occurred after the name change.<ref name="kficompany"/> At the end of the 1970s, Kraft merged with [[Dart Industries]] - makers of [[Duracell]] batteries, [[Tupperware]] plastic containers, West Bend appliances, Wilsonart plastics and Thatcher glass - to form Dart & Kraft.<ref name="kficompany"/> During the 80s, Dart & Kraft offered mixed results to its shareholder, as new acquisitions in the food business - such as Churny premium cheeses, [[Lender's Bagels]], [[Frusen Gladje]] ice cream and [[Celestial Seasonings]] tea - slightly offsets the lagging nonfood business - [[Tupperware]]'s decrease in sales and [[KitchenAid]]'s (acquired soon after the merger) slide in market share - that led for Dart & Kraft to spin off its nonfood business (except [[Duracell]] batteries) into a new entity ([[Premark International, Inc.]]) while changing its name back to Kraft, Inc. In 1988, Kraft sold [[Duracell]] to [[Procter and Gamble]].<ref name="kficompany"/> In the end of 1988, [[Altria Group|Philip Morris Companies]] purchased Kraft for $12.9 billion. In 1989, Kraft merged with Philip Morris's [[General Foods]] unit - makers of [[Oscar Mayer]] meats, [[Maxwell House]] coffee, [[Jell-O]] gelatin, Budget Gourmet frozen dinners, [[Entenmann's]] baked goods and [[Post Cereals]] - as Kraft General Foods. Its aggressive product development was reversed after the merger, as it became slow in addressing issues on its product lines due to its size, and also - company politics.<ref name="kficompany"/> In 1990, KGF acquired Jacobs Suchard - a European coffee and confectionery giant - and Freia Marabou - a Scandinavian confectionery maker - to expand overseas as its business was heavily dependent in the United States. In 1993, it acquired RJR Nabisco's cold cereal business (mainly [[Shredded Wheat]] and Shreddies cereals) while selling its [[Breyers|ice cream]] division to [[Unilever]], and its [[Birdseye]] unit to [[Dean Foods]]. In 1994, it sold its frozen dinners unit to [[H.J. Heinz]] and in 1995, it sold its foodservice unit.<ref name="kficompany"/> In 1995, it changed its name to the present name. The same year, it sold its bakery division (except Lender's Bagels, which was sold in 1996) to CPC International. Also, it sold its candy division in 1995, its tablespreads division the same year and Log Cabin syrup in 1997.<ref name="kficompany"/> In 2000, [[Altria Group|Philip Morris]] acquired [[Nabisco Brands, Inc.|Nabisco Holdings]] for $18.9 billion and merged the company with Kraft Foods the same year.<ref name="kficompany"/> In 2001, Kraft issued the second-largest [[Initial public offering|IPO]] of all time (might become the third-largest after [[VISA]]'s IPO has been offered) and had sold 280 million common shares. In 2004, it sold its sugar confectionery division to [[Wrigley]], while doing minor divestitures therefore - including its [[Cream of Wheat|hot cereals]] division in 2007, its [[Milk Bone|pet snacks]] division in 2006, juice drinks and [[Fruit2o|functional water]] in 2007 and some grocery brands in 2006. Altria announced on [[January 31]], [[2007]], that it will sell all the remaining Kraft Foods shares to Altria's shareholders; each will be given 0.7 share of Kraft for every Altria share they own. Investor [[Nelson Peltz]] bought a three-percent stake at Kraft Foods and is talking with the executives on revitalizing the business,<ref name="econketchup">{{cite web |url= http://www.economist.com/business/displaystory.cfm?story_id=9443091|title= No ketchup, please|accessdate= 2007-07-17|date= 2007-07-05|publisher= ''The Economist''}}</ref> with options such as buying [[Wendy's]] fast food chain or selling off [[Post Cereals|Post]] cereals and [[Maxwell House]] coffee.<ref name="econketchup"/> In February 2008, [[Berkshire Hathaway Inc.]] run by billionaire investor [[Warren E. Buffett]] announced that it had acquired an 8% stake in Kraft worth over $4 billion. Buffett's business partner [[Charles Munger]] had also invested over $300 million in Kraft. In July 2007, the company bought [[Groupe Danone]]'s biscuit (cookie) and cereal division for $7.2 billion.<ref name="econketchup"/><ref name="economistbetter">{{cite web |url= http://www.economist.com/business/displaystory.cfm?story_id=9476097|title= Getting better?|accessdate= 2007-07-22|date= 2007-07-12|publisher= ''The Economist''}}</ref> While two years earlier firestorms of protest had arisen over plans for American [[Pepsi]]Co's hostile takeover of the French company, Kraft's announcement was not met with the same protests, although a possible deal comes with strings: promising not to close French factories and keep the cookie headquarters near [[Paris]] for at least three years.<ref name="econketchup"/> Kraft is much more powerful in the US than in foreign markets.<ref name="econketchup"/> In November 2007, Kraft Foods agreed to sell its [[Post Cereals|cereal]] unit to [[Ralcorp Holdings]], a major private-label food maker, for $2.8 billion in a form of a spin-off merger. This would add 50% to Ralcorp's sales, to $3.3 billion, and will be used for Kraft's debt payment, which is at $13.4 billion, in danger of a downgrade by Standard and Poor's.<ref>"Kraft to Shed Post Cereals Unit," ''Associated Press,'' November 15, 2007.</ref> ==Sponsorships== Kraft Foods is an official partner and sponsor of [[Major League Soccer]] and sponsors the [[Kraft Nabisco Championship]], one of the four [[major championships|"majors"]] on the [[Ladies Professional Golf Association|LPGA]] tour. ==Brands== Kraft Foods' core businesses are in beverage, cheese and dairy, snackfoods and confectionery, convenience foods and cereals. <ref>http://www.kraft.com/Brands/largest-brands/</ref> * [[A1 Steak Sauce]] * [[Africana Romania]] * [[Ali Coffee]] * [[Alpen Gold]] chocolate (Russia) * [[Arrowroot biscuits]] * [[Athenos]] Mediterranean food products * [[Back to Nature]] * [[Baker's chocolate (brand)|Baker's]] * [[Balance Bar]] * [[Better Cheddars]] * [[Boca Burger]] * [[Bonox]] * [[Breakstone's]] * [[Brooke Bond]] * [[BullsEye Barbecue Sauce]] * [[California Pizza Kitchen]] (grocery store items) * [[Calumet Baking Powder]] * [[Cameo (biscuit)|Cameo biscuits]] * [[Capri Sun]] * [[Carte Noire]] * [[Charada]] (Peru) * [[Kraft Cheese Nips|Cheese Nips]] * [[Cheez Whiz]] * [[Chicken in A Biskit]] * [[Chips Ahoy!]] * Christie (Canada) * [[Claussen]] * [[Clight]] * [[Club Social]] crackers * [[Cool Whip]] * [[Corn Nuts]] * [[Coronita]] (Peru) * [[Côte d'Or (brand)|Côte d'Or]] (Belgium) * [[Country Time]] powdered drink mix * [[Cracker Barrel (cheese)|Cracker Barrel]] * [[Crystal Light]] * [[Daim bar|Daim]] (Sweden) * [[Dairylea]] (Europe) * Delissio (Canada) * [[DiGiorno]] * [[Easy Cheese]] * Eden processed cheese (Philippines) * [[Estrella]] Potato Chips (Sweden; Finland) * Field (Peru) * [[Fig Newton]]s * [[Filipinos (snack food)|Filipinos]] (Spain; Portugal) * [[Freia (chocolate)|Freia]] (Scandinavia) * [[Fruit2o]] * [[General Foods International]] * [[Gevalia]] (Sweden) * [[Grey Poupon]] * [[Handi-Snacks]] * [[Honey Maid]] * [[Jack's Pizza]] * [[Jacobs (coffee)|Jacobs]] (Europe) * [[Japp bar|Japp]] (Scandinavia) * [[Jell-O]] gelatin * [[Jet-Puffed Marshmallows]] * [[Kaffee HAG]] * [[Kenco]] (UK) * [[Knox gelatin]] * Knudsen * [[Kong Haakon]] (Norway) * [[Kool-Aid]] * [[Kraft BBQ Sauce]] * Kraft Caramels * Kraft [[Macaroni and cheese]] * [[Kraft Dinner]] (Canada) * [[Kraft Dinner|Kraft Easymac]] * Kraft Mayo * Kraft Peanut Butter * [[Kraft Singles]] * Kraft Sandwich Spread * Lacta (Brazil) * [[Lefèvre-Utile Biscuit Co.]] * [[Lunchables]] * [[Maarud]] Potato Chips (Norway) * [[Marabou (chocolate)|Marabou]] (Sweden) * [[Maxwell House]] * [[Milka]] (Switzerland, Germany, rest of Europe) * [[Miracle Whip]] * [[Miracoli]] (Germany) * Mostro (Peru) * [[Nabisco]] * [[Nabob (coffee)|Nabob]] (Canada) * [[Nilla]] * [[Non-Stop]] (Scandinavia) * [[Nutter Butter]] * [[O'boy]] (Scandinavia; Estonia) * Onko coffee * [[Oreo]] * [[Oscar Mayer]] * Grated [[Parmesan cheese]] * [[Philadelphia cream cheese]] * [[Pigrolac]] * [[Planters]] * [[Poiana (brand)|Poiana]] (Romania) * [[Polly-O]] cheese * [[Post Cereal]]s * [[Premium]] (a Nabisco brand of saltine crackers) * [[Pretzels]] * [[P'tit Québec]] * [[Prince Polo]] * [[Pure Kraft Salad Dressings]] * [[Ritz cracker|Ritz]] * Royal baking powder * Seven Seas * [[Shake 'n Bake]] * [[Simmenthal]] canned meat * [[Snackabouts]] * [[SnackWells]] * [[South Beach Living]] * [[Starbucks]] (grocery store items) * [[Stove Top stuffing]] * [[Suchard]] * [[Svoge (chocolate)|Svoge]] (Bulgaria) * [[Taco Bell]] (grocery store items) * [[Tang (drink)|Tang]] * [[Tassimo]] T-DISCS. * [[Teddy Grahams]] * [[Terry's]] chocolates * [[Terry's Chocolate Orange]] * [[Toblerone]] (Kraft Foods Switzerland) * [[Tombstone (pizza)|Tombstone]] * [[Triscuit]] * Trakinas * [[Twist]] * [[Vegemite]] * [[Velveeta]] * [[Wheat Thins]] {{div col end}} ==Former brands== {{Listdev}} *[[Royal Lunch Milk Crackers]] discontinued in 2008 *[[Crown Pilot Crackers]] used for New England chowder 2008 *[[Postum]] hot cereal-based beverage, discontinued in 2007 *[[Post Cereals]] (from [[Shredded Wheat]] to [[Honey Bunches of Oats]]) sold to [[Ralcorp Holdings]] (deal pending) *[[Fruit2O]] and [[Veryfine]] beverages sold to [[Sunny Delight]] in 2007 *[[Cream of Wheat]] and [[Cream of Rice]] sold to [[B&G Foods]] in 2007 *[[Minute Rice]] in 2006 to [[Riviana Foods]] *[[Milk-Bone]] (sold to [[Del Monte Foods]] in 2006) *[[Del Monte]], Aylmer, Coronation and other grocery products in Canada (sold to [[CanGro]] in 2005) *[[Life Savers]] (U.S.) and [[Altoids]] (sold to [[Wm. Wrigley Jr. Company]] in 2005) *[[Life Savers]] (Canada) (sold to [[Hershey's]] in 1987 then sold to [[Beta Brands]] in 1996 then sold to [[Wm. Wrigley Jr. Company]] in 2005) *[[Trolli]] (sold to [[Wm. Wrigley Jr. Company]] and then to [[Farley's & Sathers]]) *[[Breyers]] and [[Light N' Lively]] [[yogurt]], sold to [[CoolBrands|CoolBrands International]] *[[Breyers]], [[Sealtest]], [[Frusen Gladje]] and [[Light N' Lively]] ice cream, sold to [[Unilever]] in 1993, though the [[Oreo]] ice cream in the U.S. is made by Breyers. *[[Bird's Eye]] frozen products, sold to [[Dean Foods]] in 1993; now independent *[[Budget Gourmet]] frozen meals, sold to [[H.J. Heinz]] in 1994; now sold by [[Bellisio Foods]] under the [[Michelina's]] brand *[[Lender's]] bagels now part of [[Blackstone Group]]'s [[Pinnacle Food Group]] in 1996. *[[Rondele]] spreadable cheeses sold to Waterbury Holdings in 1996 *[[Stella D'oro]] (sold to [[Stella D'oro Holdings LLC]], a newly formed subsidiary of Brynwood Partners in 2006) *[[Farley's & Sathers]] now independent. *[[Celestial Seasonings]] (Bought back by original owners in 1988) *[[Kraft Foodservice]] sold to Clayton, Dubilier and Rice Inc. in 1995 *Bakery business (consists of [[Entenmann's]], [[Freihofers]], [[Oroweat]] and [[Boboli]] brands) to [[Bestfoods]] in 1995, now owned by [[George Weston Limited]] *Specialty oils business sold to [[Associated British Foods]] in 1995 *[[Parkay]], [[Touch of Butter]], and [[Chiffon]] sold to [[Nabisco Brands, Inc.]] in 1995; Nabisco's butter business was sold to [[ConAgra Foods]] in 1999. *Caramel and marshmallow business, sold to [[Texas Pacific Group]] in 1995, which later, reacquired *[[Koogle]] flavored peanut butter, discontinued *[[Spreadery]] spreadable cheeses, discontinued *[[Cheddarie]] cheese spread, discontinued *[[Cheese Pot]] cheese spread, discontinued *[[Kraft Eating Right]] frozen entrees, discontinued *[[Uneeda]] biscuits, discontinued *Stove Top Oven Classics, discontinued in 2003 ==Kraft Foods in the news== In 1992, the gelatin industry, in particular Kraft's Atlantic Gelatin plant in [[Woburn, Massachusetts]], which supplies the vast majority of [[Jell-O]], came under scrutiny for a history of noxious smells, toxic waste releases into [[Boston Harbor]], and a policy of corporate secrecy. Heading off a rash of local complaints, industry lobbyists invited Massachusetts state representatives Paul Casey and Carol Donovan into the plant. However, the representatives were barred from going past the conference room. Repeated requests for a plant tour by journalists were refused. In 1993, the plant was hit with a $250,000 fine for violating the [[Clean Air Act (USA) (1970)|Clean Air Act of 1970]]. In a [[February 4]] [[1996]] article, the [[Associated Press]] reported that a Massachusetts Department of Environmental Protection official was one of only a few outsiders who had seen the inside of the Woburn plant. [[Image:Kraft van.jpg|thumb|right|1950s Kraft delivery van in Australia, advertising "[[Velveeta]]", "[[Vegemite]]" and "[[Kraft Cheddar]]"]] In 2005, Kraft was [[Lawsuit|sued]] for [[Spam (electronic)|spamming]] its [[Gevalia]] coffee brand by [http://www.hypertouch.com Hypertouch], an [[Internet Service Provider|ISP]]. Kraft was accused of sending multiple waves of spam to the ISP, and the action brought under the [[CAN-SPAM Act of 2003]] act. At the time of writing, the suit had not yet been ruled upon.<ref>[http://legal.hypertouch.com Kraft sued over Gevalia spam]</ref> Kraft began a major restructuring process in January 2004, following a year of declining sales, (blamed largely on the rising health consciousness of Americans), and the sacking of co-CEO [[Betsy Holden]]. The company announced closures of 19 production facilities worldwide and the reduction of 5500 jobs, as well as the sale of 10% of its branded products. Kraft Foods expects to eliminate 8000 jobs, roughly 8% of its workforce.{{Fact|date=July 2007}} ==See also== *[[General Foods Corporation]] *[[Wise Use Movement]] *[[Ovson Egg]] ==References== {{reflist}} ==External links== *[http://www.kraft.com Kraft Corporate Website] *[http://www.kraftfoods.co.uk/kraft/page?PagecRef=1 Kraft UK website] *[http://www.hoovers.com/kraft-foods/--ID__103392--/free-co-factsheet.xhtml Kraft Foods Inc. Fact Sheet from Hoover's] *[http://www.cjly.net/deconstructingdinner/041207.htm Kraft Foods Radio Show] *[http://www.altria.com/about_altria/1_2_3_1_kraftfoodsna.asp List of North American Kraft Companies] {{Kraftprod}} {{Illinois Corporations}} [[Category:Kraft| ]] [[Category:Companies based in Cook County, Illinois]] [[Category:Northfield, Illinois]] [[Category:Companies established in 1903]] [[Category:Cheesemakers]] [[bs:Kraft Foods]] [[bg:Крафт Фуудс]] [[da:Kraft Foods]] [[de:Kraft Foods]] [[es:Kraft Foods]] [[fr:Kraft Foods]] [[id:Kraft Foods]] [[it:Kraft Foods]] [[nl:Kraft Foods]] [[no:Kraft Foods]] [[pl:Kraft Foods]] [[pt:Kraft Foods Inc.]] [[ro:Kraft Foods]] [[ru:Kraft Foods]] [[simple:Kraft Foods]] [[fi:Kraft Foods]] [[sv:Kraft Foods]]