Kraft will increase marketing and innovation
Kraft will increase its investment in marketing and its “power brands” to drive growth.
The food manufacturing company, which owns brands including Oreo, Milka and Philadephia, and also the Cadbury brand portfolio, says it has reviewed its growth strategy and established a “virtuous circle” focusing on its power brands, markets and categories to drive its top-tier growth.
Its cost management programme will also free up money that can be invested in marketing and innovation.
Kraft now generates 60% of its revenues outside the US and Irene Rosenfeld, Kraft chairman and CEO says that the acquisition of Cadbury last year has strengthened the business and positioned it for faster growth.
Kraft says that “cost and revenue synergies” with Cadbury will allow the business to increase spending on advertising and consumer programmes to 9 to 10% of revenue, up from around 8% in 2010.
It will also boost investment in innovation and NPD to 11% of revenue by 2013, up from 9% last year.
The company plans to boost “sluggish” performance in the US by “revitalising” its iconic brands though “advertising, innovation and differentiated marketing”.
It is preparing a number of new product launches in the US this year including Oreo Fudge Cremes, Philadelphia Cooking Creme and MiO liquid water enhancers, which it claims is its largest drinks launch in a decade.
