Kraft Food : A Subsidiary Of Mondelez International Inc.

• Kraft Foods Inc., is the largest food and beverage company in North America and the second largest in the world. Was founded in 1903 by James L. Kraft.

The Kraft Company has been around for a long time now. Personally I believe you must have a protective firm, not allowing other companies to steal your ideas and product. This will give the firm advantage over others.

I was immediately intrigued from the beginning of Food, Inc. There was interesting and valuable information brought up during the film. Many people do not think about where their food comes from. I believe that if people were to know where their food comes from, they would not want to eat it. There are 47,000 products at a grocery store. But, Food, Inc. implies that this is in fact an illusion because all of them are made with the same crops. The fact that there are only a few multi-national corporations that control all of the crops and meat production is a huge surprise. I believe that each person in society would be absolutely shocked if they were to watch this documentary.

This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.

Kraft Foods Group is a top fortune 100 company founded by James L Kraft in Chicago, Illinois 3 years ago. They specialize in food and beverage products categorized by beverages, frozen and refrigerated meals, dairy products, and other grocery items. Kraft products are known worldwide and can be found in almost every home in the world. Even though Kraft brand has been around for decades Kraft Foods Group is a type of business subsection that adheres separately to each demographic in the world. Since they provide for over 170 countries, they must divide and conquer to stay successful. Although the company has been very successful they face many challenges including broad competition and target markets.

This changed in 2012 when Kraft teamed up with Mondelez International Inc. “Mondelez International’s strategy was directed at exploiting its powerful brands of snack foods across the 165 country markets where its products were sold.” (Gamble, 2016) The company aimed to fulfill their strategy by expanding the company’s product line to include cookies, chocolates, candy, gum, and

Analysis - About 21% of total sales come from Beverages making it the largest category of products, followed by dairy products, confections and meat/poultry. The other categories are relatively smaller and the company can see at increasing their sales and offer them as combinations with merger products that would help in increasing the category and overall sales of the company.

Heinz manufactured products in three categories: Ketchup and Sauces, Meals and Snacks, and Infant Nutrition. Heinz’s strategy was to

The saturation of the US QSR industry has caused firms to look outside of US borders for growth opportunities. Europe has been a very attractive market for global expansion due to its large affluent population and that menu options do not have to be completely customized to the region. China and India are also attractive environments but require more modified product offerings to meet local demands. KFC has had to offer options such as burgers, ribs, or fish to meet local cultural demands in their overseas expansion.

Yum! brands, Inc, is one of the largest and most popular restaurant chain across the globe. It is based in Louisville Kentucky operating approximately 41000 restaurants in 125 countries and territories of which Taco bell, Pizza Hut, KFC, Long John Silver man and A&W chains are their brands since the spin-off in1997 when those brands were transferred from PepsiCo to Tricon company and later Yum! changed their name from Tricon to Yum in 2002. A&W and Long silver man are no longer subsidiaries of yum since 2011 as Yum focused on their 3 main brands kfc, taco bell and pizza hut and have acquired little sheep and east downing as their new subsidiaries. Yum! Generates revenue mainly from their food products like chicken, pizza and Mexican grilled

By 2007, Kraft was the 2nd largest processed-food company. The company continued to acquire and divest business units that were either extremely profitable or not

From ready-to-eat cereal to convenient meals to wholesome snacks, General Mills is one of the biggest food products manufacturers and competes in growing food categories that are on-trend with consumer tastes around the world. The company markets many well-known brands, such as Haagen Daazs, Yoplait, Betty Crocker, Totinos, and Cheerios, among others. Main rivals include Kellogg, Kraft, Conagra Foods, and Sara Lee. General Mills sells its products in three segments: U.S. retail (63% of net sales), International (25% of net sales), and Bakeries and Foodservices (12% of net sales). In addition, General Mills sells cereals and ice cream through its Cereal Partners Worldwide and Haagen Daazs Japan

General Foods Corporation is an organization that manufactures consumer food products. The corporation is "organized along product lines in the United States," including Post, Kool-Aid, Maxwell House, Jell-O, and Birds Eye. Their customers are retail consumers.

The Kraft Heinz Company successfully merged on July 2, 2015 when Heinz owned by Berkshire Hathaway and 3G Capital teamed up with Kraft Foods Group. The deal is considered one of the top most mergers in the food and beverage industry worldwide. Currently the company has its strong presence worldwide. Moreover both 3G Capital-a Brazilian Equity Firm and Warren Buffet together contributed by investing $10 billion in the deal making the company worth about $46 billion.

When Sanjay Khosla left Fonterra Group in 2007 to spearhead Kraft Foods’ business in developing countries, he was tasked with discovering a way to realize the potential for growth in developing markets that had eluded Kraft and so many other large, successful