Presenting Kraft's global growth strategy in New York this week, chairman and chief executive Irene Rosenfeld reiterated the group's target of $750m (£480m) in cost savings from the £13.7bn Cadbury deal, with costs lowered in procurement, manufacturing and logistics. Its snacks unit, which now includes Cadbury, Milka, Oreo and Trident gum, accounts for more than half the US company's total revenues.
Markets such as Brazil, China, India and Mexico were already driving forces for Kraft, and Rosenfeld said the proportion of business from developing markets would rise from a quarter of total sales to a third by 2013, boosting organic revenues by at least 5% over the period. Kraft also forecast margins in the mid-to-high teens and earnings per share growth of 9% to 11%.
Kraft would continue to invest in marketing and innovation for regional 'power brands' such as Oscar Mayer meats, Jacobs coffee and Tang powdered beverages. It would also develop local brands such as Dairylea cheese in the UK, A-1 steak sauce in North America and Vegemite in Australia. "We've built a solid foundation for growth," said Rosenfeld. "By leveraging our scale, making strategic investments and establishing a world-class cost structure, we will take our performance to the next level."