Continuing Recession reflected by Kraft Foods

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Kraft Foods is the world’s second largest Foodmaker but 60 percent of its revenue is earned in North America where Kraft is still considered the largest North American food maker
Some of their more prominent products are Oreo cookies and Ritz crackers , Jack’s Original sausage and pepperoni pizza, Tombstone Original 12 pepperoni pizza as well as biscuits, powdered drinks, chocolate and dairy foods

Kraft’s revenues have declined in the past two quarters and since June 2006 revenue has declined from $31 to $26.45 a loss of 5.9 percent.
One reason for the decline might be attributed to Kraft’s refusal to listen to US consumers who want them to eliminate the artificial colors and aspartame neurotoxins from their popular Mac & Cheese product. Kraft has been making a more nutritious product in its products sold overseas when it caved to the pressure resulting from two studies. One published in the Annals of Allergy, Asthma and Immunology, specifically states, “The beneficial effect of eliminating reactive foods and artificial colors in children with ADHD”. There was also a study published at the University of Southampton in England which highlighted a link between artificial colorants, temper tantrums, allergic reaction, and poor concentration in children. An organization called MomsRising.Org has a petition and is seeking signatures to convince Kraft to do the same thing they did overseas and remove these substances from their North American based products. The petition can be viewed at: http://momsrising.democracyinaction.org/o/1768/campaign.jsp?campaign_KEY=27297.

So the questions remain, Is the decision to reduce suppliers by 50 percent based on Kraft’s in-house forecasts of a continuing recession? What added effect will these loss of sales of North American suppliers have on the recession?

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