New product designs drive profits for Kraft
giant Kraft Foods confirming that product innovation is set to
drive growth for the firm in the long term.
At an investors meeting Roger K. Deromedi, CEO of the maker of Maxwell House and Philadelphia cream cheese brands said the key to delivering sustainable earnings growth over the long-term in the food industry is 'consistent revenue growth'.
"To that end, we continue to evolve our new product development process by focusing on fewer, bigger and better ideas, and improving our speed of execution," said Deromedi.
The four components of Kraft's plan are to build brand value, transform the portfolio, expand global scale, and drive out costs and assets.
Deromedi reviewed a number of activities supporting the plan that are expected to accelerate growth in the second half of the year, these include new products, such as 'Nabisco 100 calorie packs' and 'Honey maid oatmeal cookies' for US biscuits market, and Tassimo, the company's proprietary, on-demand hot beverage system in its lead market in France.
The firm said an additional $500 million to $600 million injection into marketing in 2004 would boost the drive to build on brand value.
Kraft claims its brands hold the number one share position in 21 of our 25 top categories in the US and 21 of its top 25 country categories internationally.
