Kraft to focus on 10 brand

Kraft Foods Inc will focus on 10 countries and 10 brands to expand internationally, the unit outside the United States should produce more than $18 billion in sales in 2008.

 China, Russia, Brazil and Southeast Asia are the four "growth
engines" in the 10 international markets Kraft plans to focus
on. The company expects sales to increase 8 percent to 10 percent
annually in those markets in the long term — excluding the effects
of currency, acquisitions and divestitures — with margins also
rising. The six other markets — Australia, United Kingdom, Spain,
France, Italy and Germany — "scale markets," where annual
sales are expected to grow 1 percent to 3 percent. The company will
focus on increasing margins more than in developing markets.

Kraft is
not rushing to bring its entire stable of brands, such as Velveeta
cheese and Oscar Mayer meats, to the 10 countries.

Instead,
Kraft will put most of its efforts behind 10 brands: Oreo cookies;
Club Social/Tuc crackers, Jacobs and Carte Noire coffees;
Philadelphia cream cheese; Tang drink mix; and Milka, Cote d'Or,
Lacta and Toblerone chocolate.

The 10
"power brands" represent almost 40 percent of Kraft's
international sales and more than 60 percent of its profits, so the
company is spending more on advertising and research and development.

Sales of
the brands rose 14 percent in the first half of 2008, up from 11
percent in 2007 and 6 percent annually from 2003 to 2006.