Kraft Foods reports strong 2008

In developing markets, which includes Middle East and Africa, Central and Eastern Europe, Asia Pacific and Latin American countries, organic net revenues grew 15.3% and operating income excluding items increased 29.6%, including a 1.7 percentage point benefit from the acquisition of LU biscuits business. Kraft Foods Middle East and Africa contributed to these results by continuing its trend of strong growth, driven by successful regional investments in cheese, powdered beverages and snacks, strategic pricing actions, favourable product mix as well as increased local production of beverage, cheese, and biscuits, together with optimal cooperation with distributors and suppliers.

"Despite a volatile year impacted by global commodity crisis, currency unfavourability to the US Dollar, and now the global financial crisis, Kraft Foods Middle East and Africa has managed to stay ahead of the game with Power Brands such as Tang, Kraft, Oreo, Toblerone and Philadelphia performing very well",

said Patrick Satamian, Vice-President and Area Director, Kraft Foods, Middle East & Africa.

"The successful implementation of Kraft Foods' global strategies has been instrumental to our growth in the region. We have focused on rewiring the organization and reframing our product categories to offer our consumers a more favourable product mix. We have also focused on reinvesting cost savings into building our brands and developing new product innovations to achieve faster top line growth".

"Kraft Foods products are household names in the region owing largely to our established presence, which we have built over 50 years. With so much vested in our consumers, we have made strategic investments in the region, which have been yielding results and accelerating our overall growth".

Kraft Foods Middle East and Africa currently operates seven manufacturing facilities across the region that produce a variety of Kraft products. It also has joint venture, contract manufacturing and license agreements in Morocco, Tunisia, Pakistan, 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.

"Overall, we are optimistic about the year ahead. We will continue to invest in our brands, drive down overheads and improve brand equity and profitability. Throughout the MEA region, we have put in place the right organization structure, the right people staff and the right strategies which will allow us, together with our partners to continue the momentum established in 2008", concluded Satamian.