Kraft Foods
Overview
 
Kraft Foods Inc. is an American confectionery
Confectionery
Confectionery is the set of food items that are rich in sugar, any one or type of which is called a confection. Modern usage may include substances rich in artificial sweeteners as well...

, food and beverage conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...

. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury
Cadbury
-Businesses:*Cadbury Adams, the company's North American subsidiary*Cadbury Ireland, the company's Irish subsidiary*Cadbury UK, the company's UK subsidiary*Cadbury India, the company's Indian subsidiary*Cadbury New Zealand, the company's New Zealand subsidiary...

, Jacobs
Jacobs (coffee)
Jacobs is a brand of coffee that traces its beginnings to 1895 in Germany by Iohann Jacobs and is today marketed in Europe by Kraft Foods. Major markets are Austria, the Baltic countries, Macedonia, Bulgaria, Serbia, the Czech Republic, Germany, Hungary, Poland, Romania, Slovakia, Azerbaijan,...

, Kraft, LU
Lefevre-Utile Biscuit Co.
Lefevre Utile, better known worldwide by the initials LU, is a manufacturer brand of French biscuits, emblematic of the city of Nantes. The brand is now part of Kraft Foods since 2007, after its acquisition from the group Danone...

, Maxwell House
Maxwell House
Maxwell House is a brand of coffee manufactured by a like-named division of Kraft Foods. Introduced in 1892, it is named in honor of the Maxwell House Hotel in Nashville, Tennessee. For many years until the late 1980s it was the largest-selling coffee in the U.S. and is currently second behind...

, Milka
Milka
Milka is a brand of milk chocolate manufactured by Kraft Foods. It is sold in bar form, in holiday shapes, and in a variety of specialty forms....

, Nabisco
Nabisco
Nabisco is an American brand of cookies and snacks. Headquartered in East Hanover, New Jersey, the company is a subsidiary of Illinois-based Kraft Foods. Nabisco's plant in Chicago, a production facility at 7300 S...

, Oscar Mayer
Oscar Mayer
Oscar Mayer is an American meat and cold cut production company, owned by Kraft Foods, known for its hot dogs, bologna, bacon and Lunchables products.-History:...

, Philadelphia, Trident, Tang
Tang (drink)
Tang is a fruit-flavored breakfast drink. Originally formulated by General Foods Corporation food scientist William A. Mitchell in 1957, it was first marketed in powdered form in 1959....

. Forty of its brands are at least a century old.

The company is headquartered in Northfield, Illinois
Northfield, Illinois
Northfield is an affluent village in Cook County, Illinois, United States. It is located approximately north of Chicago. As of the 2000 census, the village population was 5,389...

, a Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...

 suburb. Its European headquarters is in Glattpark
Glattpark
Glattpark is a large construction project in Switzerland that is taking shape in Opfikon, close to the border to Zurich. As part of the construction project a new neighbourhood will be built by 2020; it is designed to provide room for 7,000 residents and about the same number of jobs.Some of the...

, Opfikon
Opfikon
Opfikon is the name of a municipality in the Swiss canton of Zurich, located in the district of Bülach.-Coat of arms:Blazon: Party per fess gules and argent, in chief a half length portrait of a man wearing a coat sable with a white collar, in base cross pattee sable.-Geography:Opfikon is situated...

, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

, near Zürich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...

.

Kraft is an independent public company
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...

; it is listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

 and became a component of the Dow Jones Industrial Average
Dow Jones Industrial Average
The Dow Jones Industrial Average , also called the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow...

 on September 22, 2008, replacing the American International Group
American International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...

.
Encyclopedia
Kraft Foods Inc. is an American confectionery
Confectionery
Confectionery is the set of food items that are rich in sugar, any one or type of which is called a confection. Modern usage may include substances rich in artificial sweeteners as well...

, food and beverage conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...

. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury
Cadbury
-Businesses:*Cadbury Adams, the company's North American subsidiary*Cadbury Ireland, the company's Irish subsidiary*Cadbury UK, the company's UK subsidiary*Cadbury India, the company's Indian subsidiary*Cadbury New Zealand, the company's New Zealand subsidiary...

, Jacobs
Jacobs (coffee)
Jacobs is a brand of coffee that traces its beginnings to 1895 in Germany by Iohann Jacobs and is today marketed in Europe by Kraft Foods. Major markets are Austria, the Baltic countries, Macedonia, Bulgaria, Serbia, the Czech Republic, Germany, Hungary, Poland, Romania, Slovakia, Azerbaijan,...

, Kraft, LU
Lefevre-Utile Biscuit Co.
Lefevre Utile, better known worldwide by the initials LU, is a manufacturer brand of French biscuits, emblematic of the city of Nantes. The brand is now part of Kraft Foods since 2007, after its acquisition from the group Danone...

, Maxwell House
Maxwell House
Maxwell House is a brand of coffee manufactured by a like-named division of Kraft Foods. Introduced in 1892, it is named in honor of the Maxwell House Hotel in Nashville, Tennessee. For many years until the late 1980s it was the largest-selling coffee in the U.S. and is currently second behind...

, Milka
Milka
Milka is a brand of milk chocolate manufactured by Kraft Foods. It is sold in bar form, in holiday shapes, and in a variety of specialty forms....

, Nabisco
Nabisco
Nabisco is an American brand of cookies and snacks. Headquartered in East Hanover, New Jersey, the company is a subsidiary of Illinois-based Kraft Foods. Nabisco's plant in Chicago, a production facility at 7300 S...

, Oscar Mayer
Oscar Mayer
Oscar Mayer is an American meat and cold cut production company, owned by Kraft Foods, known for its hot dogs, bologna, bacon and Lunchables products.-History:...

, Philadelphia, Trident, Tang
Tang (drink)
Tang is a fruit-flavored breakfast drink. Originally formulated by General Foods Corporation food scientist William A. Mitchell in 1957, it was first marketed in powdered form in 1959....

. Forty of its brands are at least a century old.

The company is headquartered in Northfield, Illinois
Northfield, Illinois
Northfield is an affluent village in Cook County, Illinois, United States. It is located approximately north of Chicago. As of the 2000 census, the village population was 5,389...

, a Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...

 suburb. Its European headquarters is in Glattpark
Glattpark
Glattpark is a large construction project in Switzerland that is taking shape in Opfikon, close to the border to Zurich. As part of the construction project a new neighbourhood will be built by 2020; it is designed to provide room for 7,000 residents and about the same number of jobs.Some of the...

, Opfikon
Opfikon
Opfikon is the name of a municipality in the Swiss canton of Zurich, located in the district of Bülach.-Coat of arms:Blazon: Party per fess gules and argent, in chief a half length portrait of a man wearing a coat sable with a white collar, in base cross pattee sable.-Geography:Opfikon is situated...

, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

, near Zürich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...

.

Kraft is an independent public company
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...

; it is listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

 and became a component of the Dow Jones Industrial Average
Dow Jones Industrial Average
The Dow Jones Industrial Average , also called the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow...

 on September 22, 2008, replacing the American International Group
American International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...

. In August 2011, the company announced plans to split into a North American grocery business and a faster-growing global snacks company.

Origin of the firm

The firm known as Kraft Foods was formed on December 10, 1923 by Thomas H. McInnerney. The firm was initially set up to execute on a rollup
Rollup
A Rollup is a technique used by investors where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies of scale. Rollups also have the effect of increasing the valuation multiples the business can command as it...

 strategy in the then fragmented United States ice cream
Ice cream
Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners...

 industry. Through acquisitions it expanded into a full range of dairy products. By 1930, eight years after it was founded, it was the largest dairy company in the United States and the world, exceeding Borden
Borden Milk Products
Borden Milk Products L.P. is a privately held American corporation owned by the Dallas, Texas-based Milk Products LLC, a subsidiary of Grupo Lala.- Borden's Beginnings :...

.

McInnerney operated the Hydrox Corporation, an ice cream company located in Chicago, Illinois. In 1923 he went to Wall Street to convince investment bankers there to finance his scheme for consolidating the United States ice cream industry. He initially found "hard sledding" with one banker saying the dairy industry "lacked dignity." He persevered and convinced a consortium including Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...

 and Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...

 to finance a roll-up strategy.

As a result of his efforts, National Dairy Products Corporation was formed in 1923 in a merger of McInnerney's Hydrox with Rieck McJunkin Dairy Co of Pittsburgh, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

. The resulting firm was then listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

 with the offer of 125,000 shares having been oversubscribed.

The firm grew quickly through a large number of acquisitions. As is typical in a roll-up strategy, acquisitions were primarily for stock in National rather than cash. Examples of firms acquired include: (list is not complete - National acquired more than 55 firms between 1923 and 1931)
Year Firm Sector Location
1924 W.E. Hoffman Ice cream Pennsylvania
1924 Dunkin Ice Cream Ice cream Illinois
1925 Sheffield Farms
Sheffield Farms
-Summary:Sheffield Farms was a major distributor of dairy products in New York City at the turn of the 19th century. By 1930 Sheffield Farms was one of three of the largest milk companies in New York City, along with United States Dairy Products Corp. and Borden's...

Fluid milk, ice cream, other New York
1926 Breyer's Ice Cream (ice cream products owned by Unilever
Unilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....

)
Ice cream Pennsylvania
1928 Breakstone Brothers Fluid milk, cheese New York
1928 General Ice Cream Ice cream New York, East Coast
1929 Hiland Dairy Fluid milk, other Kentucky
1930 Kraft-Phenix Cheese, other US, international
1931 Consolidated Dairy Products Ice cream, other dairy New York, New Jersey

Beginnings for Kraft

Canadian-born and of German origin, James L. Kraft
James L. Kraft
James Lewis Kraft was a Canadian-American entrepreneur and inventor. Born near Stevensville, Ontario in Canada to Mennonite parents, George and Minerva Tripp Kraft, he was the first to patent processed cheese...

 started a wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...

 door-to-door
Door-to-door
Door-to-door is a sales technique in which a salesperson walks from the door of one house to the door of another trying to sell a product or service to the general public. A variant of this involves cold calling first, when another sales representative attempts to gain agreement that a salesperson...

 cheese
Cheese
Cheese is a generic term for a diverse group of milk-based food products. Cheese is produced throughout the world in wide-ranging flavors, textures, and forms....

 business in Chicago in 1903; its first year of operations was "dismal", losing US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

3,000 and a horse. However, the business took hold and Kraft was joined by his four brothers to form J.L. Kraft and Bros. Company in 1909. As early as 1911, circulars and advertisements were in use by the company.

In 1912, the company established its New York City, New York, headquarters to prepare for its international expansion. By 1914, thirty-one varieties of cheeses were being sold around the U.S. because of heavy product development
New product development
In business and engineering, new product development is the term used to describe the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible or intangible...

, expansion by marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...

, and opening a wholly owned
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...

 cheese factory
Factory
A factory or manufacturing plant is an industrial building where laborers manufacture goods or supervise machines processing one product into another. Most modern factories have large warehouses or warehouse-like facilities that contain heavy equipment used for assembly line production...

 in Illinois.

In 1915, the company had invented pasteurized
Pasteurization
Pasteurization is a process of heating a food, usually liquid, to a specific temperature for a definite length of time, and then cooling it immediately. This process slows microbial growth in food...

 processed cheese
Processed cheese
Processed cheese, process cheese, cheese slice, prepared cheese, cheese singles or cheese food is a food product made from normal cheese and sometimes other unfermented dairy ingredients, plus emulsifiers, extra salt, food colorings, or whey...

 that did not need refrigeration
Refrigeration
Refrigeration is a process in which work is done to move heat from one location to another. This work is traditionally done by mechanical work, but can also be done by magnetism, laser or other means...

, thus giving a longer shelf life
Shelf life
Shelf life is the length of time that food, drink, medicine, chemicals, and many other perishable items are given before they are considered unsuitable for sale, use, or consumption...

 than conventional cheese. The process was patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....

ed in 1916 and about six million pounds of the product were sold to the U.S. Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...

 for military rations during World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

.

In 1916, the company began national advertising and had made its first acquisition — a Canadian cheese company.

In 1924, the company changed its name to Kraft Cheese Company and listed on the Chicago Stock Exchange
Chicago Stock Exchange
The Chicago Stock Exchange is a stock exchange in Chicago, Illinois, USA. The exchange is a national securities exchange and self-regulated organization, which operates under the oversight of the U.S. Securities and Exchange Commission . The Chicago Stock Exchange is the third most active stock...

. In 1926, it was listed on the NYSE. The firm then began to consolidate the United States dairy industry through acquisition, in competition with National and Borden. Firms acquired included:
Year Firm Sector Location
1927 A.E. Wright Salad dressings n/a
1928 Phenix Cheese Cheese, other dairy products National
1928 Southern Dairies Fluid milk, milk powder, other dairy products U.S. South
1928 10 "cheese dealers" Cheese, other dairy products New York
1928 Henard Mayonnaise Co Mayonnaise n/a
1929 D.J. Easton Mayonnaise New Jersey
1929 2 other mayonnaise companies Mayonnaise n/a
1929 10 companies Cheese, other dairy products various regional
1929 International Wood Products n/a n/a
1929 Gelfand Manufacturing n/a n/a


Later, in 1927, it established its London, United Kingdom, and Hamburg
Hamburg
-History:The first historic name for the city was, according to Claudius Ptolemy's reports, Treva.But the city takes its modern name, Hamburg, from the first permanent building on the site, a castle whose construction was ordered by the Emperor Charlemagne in AD 808...

, Germany, sales offices — its first forays outside North America. Sales for 1927 were $60.4m.

In 1928, it acquired Phenix Cheese Company, the maker of a cream cheese
Cream cheese
Cream cheese is a soft, mild-tasting, white cheese with a high fat content. Traditionally, it is made from unskimmed milk enriched with additional cream....

 branded as Philadelphia cream cheese, and the company changed its name to Kraft-Phenix Cheese Company.

In 1929, The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

reported that Kraft Phenix, The Hershey Company
The Hershey Company
The Hershey Company, known until April 2005 as the Hershey Foods Corporation and commonly called Hershey's, is the largest chocolate manufacturer in North America. Its headquarters are in Hershey, Pennsylvania, which is also home to Hershey's Chocolate World. It was founded by Milton S...

 and Colgate
Colgate-Palmolive
Colgate-Palmolive Company is an American diversified multinational corporation focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products . Under its "Hill's" brand, it is also a manufacturer of...

 were looking at merging. In the same year, it was reported that National, Borden and Standard Brands
Standard Brands
Standard Brands was formed in 1929 by J.P. Morgan with the merger of:*Fleischmann Company*Royal Baking Powder Company*E. W. Gillett*Widlar Food Products Company*Chase & Sanborn Coffee Company...

 (a firm that is now part of Kraft Foods) were all looking at acquiring the firm.

By 1930, it had captured forty percent of the cheese market in the U.S. and was the third largest dairy company in the United States after National Dairy and Borden. In 1930, the company also began operating in Australia following a merger with Fred Walker
Fred Walker (entrepreneur)
Fred Walker was an Australian businessman and founder of Fred Walker & Co. The company is best known for creating Vegemite, a food paste and Australian cultural icon....

 & Co.

Post National acquisition of Kraft-Phenix

At the time of the acquisition, National Dairy had sales of $315m compared with $85m for Kraft Phenix. National Dairy management ran the combined business. Following the Kraft-Phenix acquisition, the firm continued to be called National Dairy until 1969 when it changed its name to Kraftco.

Historically, all of the firm's sales came from dairy products. However, the firm's product lines began to diversify away from dairy products to caramel candies, macaroni and cheese dinners and margarines. From the 1950s onward, the firm began to move away from low value added commodity dairy products, such as fluid milk. This trend would continue for the firm, through neglect and divestiture, until the primary remaining dairy product produced by the firm would be cheese. As a result, the modern history of the firm emphasizes the cheese history.

In 1933, the company began marketing by radio sponsorship. In 1935, the Sealtest brand of ice cream was launched as a unified national brand to replace the firm's numerous regional brands.

During World War II, the company sent four million pounds of cheese to Britain weekly.

Product development and advertising helped the company to grow during the postwar years, launching sliced process cheese and Cheez Whiz
Cheez Whiz
Cheez Whiz is a thick processed cheese sauce or spread sold by Kraft Foods. It was developed by a team led by food scientist Edwin Traisman and was first marketed in 1953....

, a brand of process cheese sauce, in the 1950s.

During these years, Thomas McInnerney, National Dairy's founder, and James L. Kraft, Kraft's founder, died, and at the end of the decade, the divisions became less autonomous and even diversified to the glass-packaging business with the acquisition of Metro Glass in 1956.

In 1947, the company tested the marketing power of the emerging medium of television by producing an hour-long drama/anthology series, the Kraft Television Theatre
Kraft Television Theatre
Kraft Television Theatre is an American drama/anthology television series that began May 7, 1947 on NBC, airing at 7:30pm on Wednesday evenings until December of that year. In January 1948, it moved to 9pm on Wednesdays, continuing in that timeslot until 1958. Initially produced by the J...

. The product advertised on the program, MacLaren’s Imperial Cheese, was selected because "... [it had] not only had no advertising appropriation whatsoever, but had not even been distributed for several years." As described by internal documents of J. Walter Thompson — the advertising firm which conceived of the marketing test — the result was "although there was no other advertising support for it whatsoever, still grocery stores could not keep up with the demand."

In the 1960s, product development became intense, launching fruit jellies, fruit preserves, marshmallows, barbecue sauces and Kraft Singles, a brand of individually wrapped cheese slices. During this decade, the company also expanded in many markets worldwide.

In 1961, the firm acquired Dominion Dairies of Canada, marking the first effort by the firm to expand into fluid milk and ice cream outside the United States. In the same year it also acquired The Southern Oil Company in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...

, England.

National Dairy becomes Kraft

In 1969, the firm changed its name from National Dairy to Kraftco Corporation. The reason for the name change was given at the time: "Expansion and innovation have taken us far afield from the regional milk and ice cream business we started with in 1923. Dollar sales of these original products have remained relatively static over the past ten years and, in 1969 accounted for approximately 25% of our sales."
At the same time, the firm transferred to Glenview
Glenview, Cook County, Illinois
Glenview is a suburban village located approximately north of downtown Chicago in Cook County, Illinois. As of the 2000 census, the village population was 41,847...

, Illinois, in 1972. In 1976, its name changed to Kraft, Inc. to emphasize the trademark the company had been known for and as a result of the fact that dairy, other than cheese, was now only a minor part of the company's sales. Reorganization also occurred after the name change.

Dart merger

In 1980, Kraft merged with Dart Industries
Justin Whitlock Dart
Justin Whitlock Dart, Sr. was considered the "boy wonder" of the drug store industry. In college Dart had played football for Northwestern University....

 - makers of the Duracell
Duracell
Duracell is a brand of batteries manufactured by Procter & Gamble.Additionally, Duracell owns the Procell professional-use brand.-Products:Duracell manufactures alkaline batteries in many common sizes, such as AAA, AA, C, D, and 9V...

 brand of batteries
Battery (electricity)
An electrical battery is one or more electrochemical cells that convert stored chemical energy into electrical energy. Since the invention of the first battery in 1800 by Alessandro Volta and especially since the technically improved Daniell cell in 1836, batteries have become a common power...

, Tupperware
Tupperware
Tupperware is the name of a home products line that includes preparation, storage, containment, and serving products for the kitchen and home, which were first introduced to the public in 1946....

 brand of plastic containers, West Bend brand of home appliance
Home appliance
Home appliances are electrical/mechanical machines which accomplish some household functions, such as cooking or cleaning. Home appliances can be classified into:*Major appliances, or White goods*Small appliances, or Brown goods...

s, Wilsonart brand of plastics and Thatcher glass - to form Dart & Kraft.

During the 1980s, Dart & Kraft offered mixed results to its shareholders, as new acquisitions in the food business - such as Churny premium cheeses, Lender's Bagels
Lender's Bagels
Lender's Bagels is a brand and producer of bagels that pioneered the bagel industry in the United States. Established in 1927 in New Haven, Connecticut, it became a North American leader in the marketing, distribution and sales of bagels. Lender's introduced frozen bagels and sold the first...

, Frusen Gladje
Frusen Glädjé
Frusen Glädjé was a company that made ice cream for the U.S. market. It was founded in 1980 by Richard Smith. Although the ice cream was made in the United States of America, it used a quasi-Swedish name and packaging of "Frusen Glädjé" .Erhard Sommer...

 ice cream and Celestial Seasonings
Celestial Seasonings
Celestial Seasonings is a tea company based in Boulder, Colorado, United States that specializes in herbal tea but also sells green, wellness, red, white, chai, holiday and black teas. They account for over $100,000,000 in herbal tea blends sales in the United States annually. All of their teas are...

 tea - slightly offset the lagging nonfood business - Tupperware's decrease in sales and KitchenAid
KitchenAid
KitchenAid is a home appliance brand owned by Whirlpool Corporation. The company was started in 1919 by The Hobart Corporation to give restaurants a countertop alternative to their industrial sized mixers. The first model weighed 69 lbs. Each unit is still assembled by hand in Greenville, Ohio...

's (acquired soon after the merger) slide in market share - leading Dart & Kraft to spin off its nonfood business (except Duracell
Duracell
Duracell is a brand of batteries manufactured by Procter & Gamble.Additionally, Duracell owns the Procell professional-use brand.-Products:Duracell manufactures alkaline batteries in many common sizes, such as AAA, AA, C, D, and 9V...

 batteries) into a new entity (Premark International, Inc.) while changing its name back to Kraft, Inc. Premark was bought by Illinois Tool Works
Illinois Tool Works
Illinois Tool Works Inc. or ITW is a Fortune 200 company that produces engineered fasteners and components, equipment and consumable systems, and specialty products. It was founded in 1912 by Byron L...

 in 1999. In 1988, Kraft sold Duracell
Duracell
Duracell is a brand of batteries manufactured by Procter & Gamble.Additionally, Duracell owns the Procell professional-use brand.-Products:Duracell manufactures alkaline batteries in many common sizes, such as AAA, AA, C, D, and 9V...

 to private equity firm Kohlberg Kravis Roberts, who then put it into an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

 in 1989. Gillette bought Duracell in 1996, and itself was acquired by Procter and Gamble in 2005.

Philip Morris acquisition and merger with General Foods

At the end of 1988, Philip Morris Companies
Altria Group
Altria Group, Inc. is based in Henrico County, Virginia, and is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates. It is one of the world's largest tobacco corporations...

 purchased Kraft for $12.9 billion. In 1989, Kraft merged with Philip Morris's General Foods
General Foods
General Foods Corporation was a company whose direct predecessor was established in the USA by Charles William Post as the Postum Cereal Company in 1895. The name General Foods was adopted in 1929, after several corporate acquisitions...

 unit - makers of Oscar Mayer
Oscar Mayer
Oscar Mayer is an American meat and cold cut production company, owned by Kraft Foods, known for its hot dogs, bologna, bacon and Lunchables products.-History:...

 meats, Maxwell House
Maxwell House
Maxwell House is a brand of coffee manufactured by a like-named division of Kraft Foods. Introduced in 1892, it is named in honor of the Maxwell House Hotel in Nashville, Tennessee. For many years until the late 1980s it was the largest-selling coffee in the U.S. and is currently second behind...

 coffee, Jell-O
Jell-O
Jell-O is a brand name belonging to U.S.-based Kraft Foods for a number of gelatin desserts, including fruit gels, puddings and no-bake cream pies. The brand's popularity has led to it being used as a generic term for gelatin dessert across the U.S. and Canada....

 gelatin, Budget Gourmet frozen dinners, Entenmann's
Entenmann's
Entenmann's is a company that manufactures and delivers sweet baked goods. The company offers dessert cakes, donuts, ultimates, cookies, loaf breads, pies, club packs, singles, cereal bars, little bites, Enten-mini’s products, as well as Danish, crumb cakes, and buns...

 baked goods, Kool-Aid
Kool-Aid
Kool-Aid is a brand of flavored drink mix owned by the Kraft Foods Company.-History:Kool-Aid was invented by Edwin Perkins in Hastings, Nebraska, United States. All of his experiments took place in his mother's kitchen. Its predecessor was a liquid concentrate called Fruit Smack...

, Crystal Light
Crystal Light
Crystal Light is a low-calorie powdered beverage mix that offers naturally and artificially sweetened beverage options in multiple flavors. Originally marketed in 1982 with Linda Evans as its spokesperson, the company later had celebrities Raquel Welch and Priscilla Presley as spokeswomen...

 and Tang powdered beverage mixes, Post Cereals
Post Cereals
Post Foods, LLC, also known as Post Cereals is a food company that was founded by C.W. Post in 1895 with the first Postum, a "cereal beverage," developed by Post in Battle Creek, Michigan. The first cereal, Grape-Nuts, was developed in 1897. Post has its headquarters in the Bank of America Plaza...

, Shake 'n Bake flavored coatings and numerous other packaged foods - as Kraft General Foods. Its aggressive product development was reversed after the merger, as it became slow in addressing issues on its product lines due to its size, and also company politics.

In 1990, the company acquired Jacobs
Jacobs (coffee)
Jacobs is a brand of coffee that traces its beginnings to 1895 in Germany by Iohann Jacobs and is today marketed in Europe by Kraft Foods. Major markets are Austria, the Baltic countries, Macedonia, Bulgaria, Serbia, the Czech Republic, Germany, Hungary, Poland, Romania, Slovakia, Azerbaijan,...

 Suchard
Philippe Suchard
Philippe Suchard was a Swiss chocolatier and industrialist.-Biography:Suchard was born in 1797 in Boudry. According to the memoirs of his sister Rosalie, he became aware of the potentialities of chocolate manufacturing as an industry at the very early age of about twelve...

 (a European coffee and confectionery giant) and Freia Marabou
Marabou (chocolate)
Marabou is a Swedish chocolate brand, which has been the most successful ever since it was launched in 1916. The distinctive brand was founded by the Norwegian chocolatier Johan Throne Holst who already had launched the same chocolate recipe in Norway under the name Freia with great...

 (a Scandinavian confectionery maker) to expand overseas as its business was heavily dependent on the U.S. In 1993, it acquired RJR Nabisco's cold cereal business (mainly Shredded Wheat
Shredded Wheat
Shredded wheat is a breakfast cereal made from whole wheat. As of January 2010, it was available in three sizes: bite sized , miniature , and full size, which may be broken into small pieces before milk is added .Both sizes are available in a...

 and Shreddies cereals) while selling its Breyers ice-cream division to Unilever
Unilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....

 and its Birds Eye
Birds Eye
__FORCETOC__Birds Eye is an international brand of frozen foods owned by Pinnacle Foods in North America and by private equity group Permira in Europe....

 unit to Dean Foods
Dean Foods
Dean Foods is an American food and beverage company with two operating divisions: Fresh Dairy Direct and WhiteWave-Morningstar. The company maintains plants and distributors in the United States and the United Kingdom. Dean Foods products are sold throughout the USA.-History:In 1925, Samuel E...

. In 1994, it sold its frozen dinners unit to H.J. Heinz and in 1995, it sold its foodservice unit.

In 1995, it changed its name to the present name, Kraft Foods. The same year, it sold its bakery division (except Lender's Bagels, which was sold in 1996 to CPC International), its candy division and its tablespreads division. Log Cabin
Log Cabin Syrup
Log Cabin Syrup is a brand of pre-packaged syrups owned by Pinnacle Foods.Log Cabin syrup was introduced in 1887. Grocer Patrick J. Towle, who lived in the village of Forest Lake, Minnesota, named the syrup in honor of his childhood hero, President Abraham Lincoln, and his childhood in a log...

 syrup
Syrup
In cooking, a syrup is a thick, viscous liquid consisting primarily of a solution of sugar in water, containing a large amount of dissolved sugars but showing little tendency to deposit crystals...

 was sold in 1997.

Financial expansion

In 2000, Philip Morris
Altria Group
Altria Group, Inc. is based in Henrico County, Virginia, and is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates. It is one of the world's largest tobacco corporations...

 (renamed Altria in 2003) acquired Nabisco Holdings for $18.9 billion and merged the company with Kraft Foods the same year. In 2001, Philip Morris sold 280 million Kraft shares via the third-largest IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

 of all time, retaining an 88.1% stake in the company.

In 2004, it sold its sugar confectionery division to Wrigley
Wm. Wrigley Jr. Company
The William Wrigley Jr. Company is a company headquartered in the Wrigley Building in Near North Side, Chicago, Illinois. The company was founded on April 1, 1891, originally selling products such as soap and baking powder. In 1892, William Wrigley, Jr., the company's founder, began packaging...

, while doing minor divestitures - including its hot cereals division (Cream of Wheat
Cream of Wheat
Cream of Wheat is a porridge-type breakfast food invented in 1893 by wheat millers in Grand Forks, North Dakota. The cereal is currently manufactured and sold by B&G Foods. Until 2007, it was the Nabisco brand made by Kraft Foods. It is similar in texture to grits, but made with farina instead...

) in 2007, its pet snacks division (Milk-Bone
Milk-Bone
Milk-Bone is a brand of dog biscuit. It was created in 1908 by the F. H. Bennett Biscuit Company, which operated a bakery on the Lower East Side of New York City. Originally named Maltoid, the biscuit was a bone-shaped treat made from minerals, meat products, and milk...

) in 2006, juice drinks and Fruit2o
Fruit2o
Fruit2O, formerly manufactured by Kraft, is a lightly flavored, non-carbonated water beverage introduced in 1999. Fruit2o was introduced to compete not only with the bottled water market but also with the soft drink market...

 in 2007 and some grocery brands in 2006.

Altria announced on January 31, 2007, that it would spin off all the remaining Kraft Foods shares to Altria's shareholders; each will be given approximately 0.7 share of Kraft for every Altria share they owned.

Investor Nelson Peltz
Nelson Peltz
Nelson Peltz is an American businessman. He is a board director of Wendy's Group, the franchise parent of T.J. Cinnamons, Pasta Connection and Wendy's. Peltz is the former owner of Snapple.- Background :...

 bought a three-percent stake at Kraft Foods and is talking with the executives on revitalizing the business, with options such as buying Wendy's
Wendy's
Wendy's is an international fast food chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, United States. The company decided to move its headquarters to Dublin, Ohio, on January 29, 2006. It has been owned by Triarc since 2008...

 fast food chain or selling off Post
Post Cereals
Post Foods, LLC, also known as Post Cereals is a food company that was founded by C.W. Post in 1895 with the first Postum, a "cereal beverage," developed by Post in Battle Creek, Michigan. The first cereal, Grape-Nuts, was developed in 1897. Post has its headquarters in the Bank of America Plaza...

 cereals and Maxwell House
Maxwell House
Maxwell House is a brand of coffee manufactured by a like-named division of Kraft Foods. Introduced in 1892, it is named in honor of the Maxwell House Hotel in Nashville, Tennessee. For many years until the late 1980s it was the largest-selling coffee in the U.S. and is currently second behind...

 coffee.
On January 31, 2007, after months of speculation, the company announced that its 88.1% stake would be spun off to Altria shareholders at the end of March 2007. Kraft is now an independent publicly held company.

In July 2007, the company bought Groupe Danone
Groupe Danone
Groupe Danone is a French food-products multinational corporation based in the 9th arrondissement of Paris. It claims world leadership in fresh dairy products, marketed under the corporate name, and also in bottled water...

's biscuit (cookie) and cereal division for $7.2 billion, including iconic French biscuit brand Lefèvre-Utile. While two years earlier firestorms of protest had arisen over plans for American PepsiCo's
PepsiCo
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...

 hostile takeover of the French company, Kraft's announcement was not met with the same protests, in part because Kraft agreed not to close French factories and keep the new merged divisions headquarters near Paris for at least three years.

In November 2007, Kraft agreed to sell its cereal
Post Cereals
Post Foods, LLC, also known as Post Cereals is a food company that was founded by C.W. Post in 1895 with the first Postum, a "cereal beverage," developed by Post in Battle Creek, Michigan. The first cereal, Grape-Nuts, was developed in 1897. Post has its headquarters in the Bank of America Plaza...

 unit to Ralcorp Holdings, a major private-label food maker, for $2.6 billion in a form of a spin-off merger. This would add 50% to Ralcorp's sales, to $3.3 billion, and will be used for Kraft's debt payment, which is at $13.4 billion, in danger of a downgrade by Standard and Poor's.

In February 2008, Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...

 run by billionaire investor Warren E. Buffett announced that it had acquired an 8% stake in Kraft worth over $4 billion. Buffett's business partner Charles Munger had also invested over $300 million in Kraft. Berkshire Hathaway owns 5.6% of the outstanding stock of Kraft Foods, as reported in the holding company's 2010 annual report
Annual report
An annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance...

.

On September 22, 2008, the company replaced the troubled insurance company, American International Group in the Dow Jones Industrial Average
Dow Jones Industrial Average
The Dow Jones Industrial Average , also called the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow...

.

Purchase of Cadbury

On September 7, 2009, Kraft made a £10.2 billion takeover offer for the long-established British confectionery group Cadbury, makers of Dairy Milk and Bournville chocolate. On November 9, 2009 Kraft's £9.8bn takeover bid was rejected by Cadbury. Cadbury stated that the takeover bid was a "derisory" offer. Kraft renewed the offer under the same terms on December 4, 2009. The offer generated significant political and public opposition in the United Kingdom and abroad, even leading to calls for the government to implement a policy of economic protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...

 in cases of takeovers of large companies.
On January 19, 2010, Cadbury finally approved a revised offer from Kraft, valuing the confectionery business at $19.5 billion (£11.5 billion). The funding for the takeover was partially provided by the Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...

, the British part-state-owned bank.

The Cadbury purchase was part of the long-term strategy of Irene Rosenfeld
Irene Rosenfeld
Irene Blecker Rosenfeld is an American businesswoman, who is the current CEO and Chairwoman of Kraft Foods.-Early life and education:...

, CEO and Kraft Chairman since March 2007, who developed a three-year turnaround plan designed to drive the profitable growth of Kraft Foods. Known as a driven and decisive leader, she wanted to develop new markets and expand product range when assumed the role of chairman. The acquisition made sense and fit under Kraft’s overall strategy at the time. It was assumed that it would help Kraft products develop in new markets such as Brazil and India because of Cadbury’s current strong presence in those markets. India is one of its most resilient markets with sales growth of 20% and profits growing at 30% in a competitive market. Kraft believed the Cadbury purchase was also necessary because of the likelihood of Nestle and Hershey joining together. Kraft also believed it could squeeze savings of at least $675m annually by the end of the third year. Irene Rosenfeld saw the Kraft Cadbury merger as the "logical next step in our transformation toward a high-growth, higher-margin company." She also justified the merger in order to build a "global powerhouse in snacks, confectionery and quick meals."

Following the purchase of Cadbury, Kraft commanded 14.8% of the global candy and gum market. Kraft argued that it could take advantage of the Cadbury distribution in developing markets of India, Brazil and Mexico. As incomes rise in these developing nations, Kraft hopes that products such as Oreo will become impulse buys for children. Mars, Inc. is second in the confectionery market with 14.6% share, followed by Nestle
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...

 with 7.8%.

At the time of the purchase, the chocolate and sugar industry had been growing rapidly at 15% over the previous three years and was valued at $113 billion. The purchase of Cadbury was considered strange because they did not have a strong foothold on the confectionery market, but at the time Kraft noted their production of confectionery foods like Toblerone and candy foods like Oreo. Cadbury also owned popular gum brands such as Stride
Stride
Stride can stand for:* A period of locomotion defined by the complete cycle of a reference limb. See gait* In music:** STRIDE - An indie rock n roll band from North East Scotland** Stride , a type of piano playing...

, Trident
Trident
A trident , also called a trishul or leister or gig, is a three-pronged spear. It is used for spear fishing and was also a military weapon. Tridents are featured widely in mythical, historical and modern culture. The major Hindu god, Shiva the Destroyer and the sea god Poseidon or Neptune are...

, Dentyne
Dentyne
Dentyne is a series of brands of chewing gum available in several countries globally. It is owned by Cadbury Adams, a division of Cadbury.In 1899, a New York City druggist named Franklin V. Canning formulated a chewing gum which he promoted as an aid to oral hygiene. "To prevent decay, To sweeten...

, and Chiclets
Chiclets
Chiclets is a brand of candy coated chewing gum made by Cadbury Adams. The colors of chiclets are: yellow, green, orange, red, white, and pink. The product's name is derived from Nahuatl word tziktli, in English chicle, the substance from which chewing gum was traditionally made...

. Roger Carr
Roger Carr (businessman)
Sir Roger Martyn Carr is a British businessman who is regarded as one of the growing number of "Double Chairmen" who head two companies in Britain’s benchmark FTSE 100 index...

, chairman of Cadbury, discussed his approval of the takeover by Kraft by saying, "We believe the offer represents good value for Cadbury shareholders and are pleased with the commitment that Kraft Foods has made to our heritage, values and people throughout the world."

Acquisition fallout

Cadbury sales were flat after Kraft’s acquisition. Despite the Cadbury takeover helping to boost sales by 30%, Kraft's net profit for the fourth quarter fell 24% to $540m due to costs associated with integrating the UK business after the acquisition. Kraft suffered from $1.3billion of implementation costs to achieve just $675 million in cost synergies by the end of 2012 (estimated).
Kraft was forced to increase prices to offset rising commodity costs in North America and Europe. Kraft has had to contend with the higher cost of ingredients such as corn, sugar and cocoa. Kraft chief executive Irene Rosenfeld
Irene Rosenfeld
Irene Blecker Rosenfeld is an American businesswoman, who is the current CEO and Chairwoman of Kraft Foods.-Early life and education:...

 said, “We expect it will remain weak for the foreseeable future.” Taking into account integration costs, the acquisition knocked about 33% off Kraft's earnings per share immediately after the purchase of Cadbury. In March 2011, Kraft caused local outrage when they sold the site of an historic Cadbury factory it vowed not to close for £50million. The Somerdale Factory
Somerdale Factory
Somerdale was a chocolate factory located in Keynsham near Bristol in south west England. It was the home of a Cadbury plc's production facility, and was originally built by the Fry family when they expanded through consolidation of a number of existing facilities located in the centre of...

 was closed just days after the takeover by Kraft Foods. Former Cadbury workers demanded for an apology for the abrupt selling of the plant, but Kraft’s CEO Irene Rosenfeld
Irene Rosenfeld
Irene Blecker Rosenfeld is an American businesswoman, who is the current CEO and Chairwoman of Kraft Foods.-Early life and education:...

 refused to explain her actions. Kraft continues to use Cadbury brands in emerging markets to expand all of its products. In April 2011, Kraft set to invest $150 million in South Africa’s manufacturing plants over three years. President Sanjay Khosla
Sanjay Khosla
Sanjay Khosla is an Indian-American engineer and a senior business executive of multi-national corporations.Sanjay Khosla is currently President of Kraft International Commercial at Kraft Foods he also presides over Developing Markets and Global Categories, responsible for leading Kraft Foods...

 said, "South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

 is a priority market for us, where we focus on power brands like Cadbury chocolate."

Selling to Nestlé

On March 1, 2010, Nestle
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...

 concluded the purchase of Kraft's North American frozen pizza business for $3.7 billion. Kraft left the door open to repurchase with a buyback option not before one year and not after three years for the original sale price of $3.7 billion. Although not likely if Kraft were to want to repurchase they would have to come up with cash only and no stocks. The sale included DiGiorno
DiGiorno
DiGiorno is a brand of frozen pizzas sold in the United States, owned by Nestlé. In Canada, Nestlé markets a largely identical line of pizzas under the Delissio brand....

, Tombstone
Tombstone (pizza)
Tombstone is a brand of frozen pizza. It is available in several varieties, including pepperoni and sausage. The package design typically includes images of a cactus and the pizza.-History:...

 and Jack's brands in the United States, the Delissio brand in Canada and the California Pizza Kitchen
California Pizza Kitchen
California Pizza Kitchen , known within the food industry as CPK, is a casual dining restaurant chain that specializes in California-style pizza...

 trademark license. It also includes two Wisconsin manufacturing facilities in Medford
Medford, Wisconsin
Medford is a city in Taylor County, in north-central Wisconsin, United States. The population was 4,326 at the 2010 census. The city is located mostly within the boundaries of the Town of Medford.- Geography :Medford is located at Medford is a city in Taylor County, in north-central Wisconsin,...

 and Little Chute. The business generated 2009 net revenues of $1.6 billion, with 3,400 employees.

Sponsorships

Kraft is an official partner and sponsor of Major League Soccer
Major League Soccer
Major League Soccer is a professional soccer league based in the United States and sanctioned by the United States Soccer Federation . The league is composed of 19 teams — 16 in the U.S. and 3 in Canada...

 and sponsors the Kraft Nabisco Championship
Kraft Nabisco Championship
The Kraft Nabisco Championship is one of the four major championships on the LPGA Tour. It was founded in 1972 by Dinah Shore and has been classified as a major since 1983...

, one of the four "majors"
Women's major golf championships
Women's golf has a set of major championships which parallels that in men's golf, but the women's system is younger and has been less stable than the men's. Many professional stroke play events for women are played over three rounds , but the majors are played over four rounds , which is the...

 on the LPGA tour. The company also sponsors the Kraft Fight Hunger Bowl, a post-season college football
College football
College football refers to American football played by teams of student athletes fielded by American universities, colleges, and military academies, or Canadian football played by teams of student athletes fielded by Canadian universities...

 bowl game
Bowl game
In North America, a bowl game is commonly considered to refer to one of a number of post-season college football games. Prior to 2002, bowl game statistics were not included in players' career totals and the games were mostly considered to be exhibition games involving a payout to participating...

.

Promotions

Kraft HockeyVille is a Canadian reality television series developed by CBC Sports and sponsored by Kraft Foods in which communities across Canada compete to demonstrate their commitment to the sport of ice hockey. The contest revolves around a central theme of community spirit in Canada and is directed by Mike Dodson.

Kraft has released an iPad app called "Big Fork Little Fork" which, in addition to games and other distractions, has information regarding how to use Kraft foods in nutritious ways. This app costs $1.99; a version for home computers is available on on the iTunes app store.

Brands

The company's core businesses are in beverage, cheese
Cheese
Cheese is a generic term for a diverse group of milk-based food products. Cheese is produced throughout the world in wide-ranging flavors, textures, and forms....

, dairy foods, snack foods, confectionery
Confectionery
Confectionery is the set of food items that are rich in sugar, any one or type of which is called a confection. Modern usage may include substances rich in artificial sweeteners as well...

, and convenience foods. The full list of Kraft brands can be found at Largest Brands on Kraft's own website.

Kraft lists its own major brands, which each generate revenues exceeding $1 billion, as:
  • Cadbury
    Cadbury
    -Businesses:*Cadbury Adams, the company's North American subsidiary*Cadbury Ireland, the company's Irish subsidiary*Cadbury UK, the company's UK subsidiary*Cadbury India, the company's Indian subsidiary*Cadbury New Zealand, the company's New Zealand subsidiary...

  • Jacobs
    Jacobs (coffee)
    Jacobs is a brand of coffee that traces its beginnings to 1895 in Germany by Iohann Jacobs and is today marketed in Europe by Kraft Foods. Major markets are Austria, the Baltic countries, Macedonia, Bulgaria, Serbia, the Czech Republic, Germany, Hungary, Poland, Romania, Slovakia, Azerbaijan,...

  • Kraft, including Kraft Dinner
    Kraft Dinner
    Kraft Dinner, known as Kraft Macaroni and Cheese in the United States and Macaroni Cheese in the United Kingdom, is a macaroni and cheese convenience food that requires minimal preparation by the consumer. The original product, a packaged dry macaroni and cheese mix, was introduced in 1937 by the...

    , Kraft Singles
    Kraft Singles
    Kraft Singles is a processed cheese product manufactured and sold by Kraft Foods, introduced in 1949 . Kraft Singles is a pasteurized cheese product manufactured and sold by Kraft Foods, introduced in 1947...

    , Kraft Mayo
    Kraft Mayo
    Kraft Mayonnaise or Kraft Mayo is a brand of mayonnaise made by Kraft Foods. It is made in many forms and flavors. A new line of the brand's flavored mayonnaises are launched with a celebrity-based ad campaign by HGTV's Design Star judges Candice Olson, Genevieve Gorder and Vern Yip.-History:Kraft...

  • LU
    Lefevre-Utile Biscuit Co.
    Lefevre Utile, better known worldwide by the initials LU, is a manufacturer brand of French biscuits, emblematic of the city of Nantes. The brand is now part of Kraft Foods since 2007, after its acquisition from the group Danone...

  • Maxwell House
    Maxwell House
    Maxwell House is a brand of coffee manufactured by a like-named division of Kraft Foods. Introduced in 1892, it is named in honor of the Maxwell House Hotel in Nashville, Tennessee. For many years until the late 1980s it was the largest-selling coffee in the U.S. and is currently second behind...

  • Milka
    Milka
    Milka is a brand of milk chocolate manufactured by Kraft Foods. It is sold in bar form, in holiday shapes, and in a variety of specialty forms....

  • Nabisco
    Nabisco
    Nabisco is an American brand of cookies and snacks. Headquartered in East Hanover, New Jersey, the company is a subsidiary of Illinois-based Kraft Foods. Nabisco's plant in Chicago, a production facility at 7300 S...

  • Oreo
    Oreo
    Oreo is a trademark for a popular sandwich cookie by the Nabisco Division of Kraft Foods. The current design consists of a sweet, white filling commonly referred to as 'cream' or 'creme', sandwiched between two circular chocolate or golden cookie pieces....

  • Oscar Mayer
    Oscar Mayer
    Oscar Mayer is an American meat and cold cut production company, owned by Kraft Foods, known for its hot dogs, bologna, bacon and Lunchables products.-History:...

  • Philadelphia
  • Trident
  • Tang
    Tang (drink)
    Tang is a fruit-flavored breakfast drink. Originally formulated by General Foods Corporation food scientist William A. Mitchell in 1957, it was first marketed in powdered form in 1959....



Seventy additional brands have revenues greater than $100 million. In total, 40 brands are at least 100 years old.

Cadbury

In 2010, Kraft bought Cadbury, resulting in several boycotts of all Kraft related products. A YouGov
YouGov
YouGov, formerly known as PollingPoint in the United States, is an international internet-based market research firm launched in the UK in May 2000 by Stephan Shakespeare, now Chief Executive Officer, and Nadhim Zahawi...

 SixthSense survey has revealed that at the time of the buy-out, 94% of the British population was aware that Cadbury was being sold to Kraft.

Kraft Foods in the news

Kraft began a major restructuring process in January 2004, following a year of declining sales (blamed largely on the rising health consciousness of Americans) and the sacking of co-CEO Betsy Holden
Betsy Holden
Betsy Holden is a corporate director of Tribune Company. Holden served as Co-CEO of Kraft Foods from 2001 to 2004. She is currently a senior advisor to McKinsey & Company and a member of the Duke University Board of Trustees....

. The company announced closures of 19 production facilities worldwide and the reduction of 5,500 jobs, as well as the sale of 10% of its branded products.

On January 19, 2010, Kraft sealed the deal to buy 100% of the share capital of Cadbury for over $19 billion dollars.

On March 17, 2010, Kraft Foods said it was "truly sorry" over its closure of a Cadbury factory in Somerdale. Senior Kraft executive Marc Firestone made the public apology to MPs at a parliamentary select committee hearing.

In March 2011, in the US, Kraft Foods introduced MiO, a liquid flavoring product with zero calories and sugar-free geared to 18 to 39-year-old consumers. MiO has no artificial flavors but it does have artificial colors, artificial sweeteners and artificial preservatives, unlike some competing flavoring products, according to USA Today.

In August 2011, Kraft Foods announced plans to split into two publicly traded companies--a snack food company and a grocery company.

Kraft Foods in the UK

Kraft Foods, Banbury

Kraft Foods in the Ruscote
Ruscote
The Ruscote, Hardwick and Hanwell Fields estates are three interconnecting Banbury estates that were built between the 1930s and first decade of the 21st century.-History:...

 ward of Banbury
Banbury
Banbury is a market town and civil parish on the River Cherwell in the Cherwell District of Oxfordshire. It is northwest of London, southeast of Birmingham, south of Coventry and north northwest of the county town of Oxford...

, Oxfordshire
Oxfordshire
Oxfordshire is a county in the South East region of England, bordering on Warwickshire and Northamptonshire , Buckinghamshire , Berkshire , Wiltshire and Gloucestershire ....

, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...

 is a large food and coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...

 producing factory in the north of the town.

It was built in 1964 and was partly due to the London overspill
London overspill
London overspill is the term given to the communities created - largely consisting of publicly provided housing - as a result of the Government policy of moving residents out of Greater London, England into other towns around the South East, East Anglia and beyond.-Policy development:The policy...

. Kraft Foods Banbury is the Kraft centre of manufacturing with the Kraft UK headquarters located at Cheltenham
Cheltenham
Cheltenham , also known as Cheltenham Spa, is a large spa town and borough in Gloucestershire, on the edge of the Cotswolds in the South-West region of England. It is the home of the flagship race of British steeplechase horse racing, the Gold Cup, the main event of the Cheltenham Festival held...

.

The factory is still sometimes known as General Foods
General Foods
General Foods Corporation was a company whose direct predecessor was established in the USA by Charles William Post as the Postum Cereal Company in 1895. The name General Foods was adopted in 1929, after several corporate acquisitions...

 after the American company which originally owned the building, before 'GF' as it is commonly known was taken over by Kraft.

During October 2006, a block of Kraft Foods that was being prepared for demolition caught on fire and remained on fire for most of the day.

There was a notable, but non-lethal, fire at the coffee plant on Tuesday 7 December 2010.

In Spring 2010, a lorry load of Kenco Coffee
Kenco
Kenco is a brand of instant coffee, and roast & ground coffee distributed by Kraft Foods in the United Kingdom and the Republic of Ireland. Originally known as the Kenya Coffee Company, they started distributing coffee to Britain in 1923...

 was stolen by a driver who conned his way into the plant.

See also

  • List of Kraft brands
  • General Foods Corporation
  • Ovson Egg
    Ovson Egg
    Ovson Egg was an American food processing company founded in 1919 to provide frozen, canned and dried eggs to manufacturers of products such as cookies, cakes, custards, egg noodles, beverages, ice cream, macaroni, mayonnaise, salad dressing and puddings...

  • Wise Use Movement

External links

  • Kraft Foods Inc. Fact Sheet from Hoover's
  • KFT:US Kraft Foods Inc at Bloomberg News
  • KFT:New York at Businessweek
    BusinessWeek
    Bloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...

  • Kraft Foods Inc at Financial Times
    Financial Times
    The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....

  • Kraft Foods Inc at The Wall Street Journal
    The Wall Street Journal
    The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....

  • Kraft Foods Radio Show from cjly.net
  • Kraft Foods Inc. collected news and commentary at The New York Times
    The New York Times
    The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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