TribLIVE

| Home


Weather Forecast
 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Kraft split produces profitable quarter

About The Tribune-Review
The Tribune-Review can be reached via e-mail or at 412-321-6460.
Contact Us | Video | Photo Reprints

Daily Photo Galleries


By The Associated Press

Published: Wednesday, Nov. 7, 2012, 6:32 p.m.

NEW YORK — Kraft Foods is embracing the spirit of a startup and betting that innovation will help it grow, as the maker of household names such as Oscar Mayer, Miracle Whip and Velveeta looks to redefine itself after splitting from its more glamorous global snack foods business.

The company, which was established in 1903, said Wednesday that its net income rose 13 percent in the third quarter, as a mix of new products, increased advertising and productivity improvements lifted results. But the company cautioned that there were limitations to the conclusions that could be drawn from the comparison with last year, before the companies split.

Although it stood by its outlook for 2013, Kraft said revenue in the fourth quarter should be flat or down as it prunes less-profitable products and continues incurring restructuring costs.

The results are the first since Kraft Foods Group Inc., based in Northfield, Ill., split with its snack food business. That company, which is called Mondelez International Inc. and has brands including Oreo, Cadbury and Nabisco, is expected to grow at a faster rate than Kraft.

The split was intended to allow each of the companies to focus on a more targeted portfolio of products, thus accelerating growth.

At Kraft, CEO Tony Vernon said the company felt like a startup of sorts after the break, with executives working to clean up the company's lineup of less-profitable product extensions and revitalize languishing brands.

In coming months, for example, Vernon said Jell-O would be a brand “moms and kids are going to rediscover” as the company rolls out new packaging and marketing.

Jell-O, along with Planters and Capri Sun, had volume declines in the quarter.

 

 
 


Show commenting policy

Most-Read Stories

  1. Jailed Hribal ‘fine,’ but family ‘terrible’ as answers in stabbing sought
  2. Starkey: Fleury’s future at stake
  3. Five years later, Crosby wants another Cup win
  4. Pitt wraps up spring football practice with closeness, competition
  5. Pirates notebook: Wandy Rodriguez experiencing decline in fastball velocity
  6. Penguins’ Malkin expects to play in Game 1
  7. Hempfield Area superintendent, business manager quit
  8. South Fayette parents express dissatisfaction with handling of bullying
  9. Obama, Biden to announce $500M for job training grants during W.Pa. visit
  10. Pirates conclude wild suspended game with win, drop 2nd of series
  11. Lawsuit against Frazer policeman, township moved to federal court
Subscribe today! Click here for our subscription offers.