Kraft Foods Middle East & Africa moves ahead with strong operating momentum in third quarter

In developing markets, which includes the Middle East and Africa, organic net revenue grew 19.1% driven by strong results in every region.

For Kraft Foods Middle East and Africa in
particular, successful investments in the region, including increased local production of Kraft Foods Power Brands in beverage, cheese, and biscuits, as well as increased efficiencies in local manufacturing and logistics drove significant volume, revenue and profit growth across the region.

According to Patrick Satamian, Vice-President and Area Director, Kraft Foods, Middle East & Africa,

"Our growth momentum in the Middle East and Africa region has continued with solid top and bottom line results driven by pricing, category growth and share gain, as well as the introduction of new products, also structural changes made in some markets have allowed for accelerated growth."

"The upward trend in profitability is also fuelled by cost reductions resulting from our increased focus on producing Power Brands such as Tang, Kraft Cheese, and Oreo locally. We are also seeing increased efficiencies in manufacturing and logistics, owing largely to our strong presence in the region and improved synergy with local suppliers."

At the same time imported confectionary brands such as Toblerone and Milka, and Philadelphia Cheese are successfully meeting with consumer acceptance, he added.

"Our continued growth in the region is a reflection of our commitment to successfully implement Kraft Foods' global strategies, which include rewiring the organization to be more consumer and market focused; reframing product categories; focusing on sales and distribution; and driving down costs without compromising the quality of our products", said Satamian.

"Kraft Foods products are household names in the region owing largely to our established presence, which we have built over 50 years. Our on-going programmes to add value to our products through investments in quality, marketing and innovation are paying off, and this will continue to be the focus in this region", he added.

Kraft Foods Middle East and Africa currently operates six manufacturing facilities that produce a variety of Kraft products.

It also has contract manufacturing and license agreements in the UAE, Saudi Arabia, Egypt and South Africa.

In addition to Tang, Oreo, Ritz crackers and Kraft cheeses, the company markets a broad portfolio of iconic brands including Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers; Jacobs coffees, Toblerone and Milka chocolates and LU biscuits.

Kraft Foods Inc has raised its outlook for 2008 organic net revenue growth to 7%, up from the previous expectation of at least 6% as a result of stronger-than-expected year-to-date volume performance.

The company continues to expect cumulative annualized savings from the restructuring programme to reach approximately $1.1bn by year-end 2008.

To date, cumulative annualized savings from this cost restructuring programme totaled approximately $1.0bn, up from approximately $0.8bn at the end of 2007.