Kraft to bolster key brands in Europe

Kraft, the US food company, is well positioned to split into two separate companies later this year, according to its chief executive, after sales of its key brands in Europe and North America put it on track to deliver “top tier” growth in 2012.


The business said it would step up marketing activity for its core brands, such as Oreo and Cote D’or following its spin-off into two companies.

European revenue rose 7.5% for the full year to December 2011, compared to a 5.1% increase in North America over the same period.

The company had reported a 6.6% growth in fourth quarter revenue to $14.7bn (£9.4bn), while revenue for the year was up 10.5% to $54.4bn (£34.4bn).

Irene Rosenfeld, Kraft’s chief executive, says that the company expects to deliver “top-tier” growth this year ahead of its October split into a global snack offering which will focus on brands such as Cadbury and Oreo, and a separate US grocery division, which will assume responsibility for brands including Maxwell House coffee and Oscar Mayer lunch meat.

She adds: “”Growth was especially strong in our global snacks portfolio. It now represents about half of our sales. The challenge remains in Europe and North America where gum and candy were down mid-single digits.”

The report, which marks Kraft’s final earnings update as a single business, revealed that costs of its separation into two companies could total as much as $1.8bn (£1bn).

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here