Kraft promises to up marketing effort on Cadbury brands

Kraft has vowed to invest in marketing and innovation for its Cadbury “power brands” as well as local brands such as Dairylea in the UK in order to achieve its plan to grow revenue by 5%.

The company made the commitment in a presentation to analysts in New York yesterday (15 September).

Presenting its “Global Growth Strategy”, Irene Rosenfeld, chairman and CEO of Kraft Foods, claims that the food company “is a global snacks powerhouse with an unrivalled portfolio of leading regional and local brands”.

“At Kraft Foods, we’re hitting our sweet spot,” she adds. “We’ve built a solid
foundation for growth. By leveraging our scale, making strategic investments in marketing, sales and innovation and establishing a world-class cost structure, we will take our performance to the next level.”

See Kraft’s VP of marketing Daryl Fielding appear at The Annual, Marketing Week’s new conference on 29 September 2010
See Kraft’s VP of marketing Daryl Fielding appear at The Annual, Marketing Week’s new conference on 29 September 2010

Kraft completed its acquisition of Cadbury at the start of the year with the newly acquired brands counting for more than half of the company’s revenue.

The company claims that the economies of scale provided by the Kraft and Cadbury combination allow it to grow sales and distribution, delivering $1bn (£640m) in revenue synergies.

Since the takeover, Kraft has downsized the Cadbury marketing function in the UK saying that while marketing will remain within the market “overall strategic direction” will come from a central marketing team in Zurich.

Cadbury UK marketing director Phil Rumbol left the company, and has since launched a start-up agency with Fallon founder Laurence Green and creative director Richard Flintham.

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