Kraft Foods Middle East and Africa continues strong growth in Q1 2009

Organic net revenue growth reflected the impact of cost-driven pricing actions taken in 2008, together with better-than-expected volume/mix.

In Kraft Foods Developing Markets, which includes countries in the Middle East and Africa, Central and Eastern Europe, Asia Pacific and Latin America, organic net revenues increased 12.0% driven by solid gains in each region.

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, as well as stable pricing, favourable product mix, increased local production of beverage, cheese, and biscuits, together with optimal business relationships with distributors, JV partners and suppliers.

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

"Despite a challenging consumer environment, Kraft Foods Middle East and Africa had a very solid start to the year with Power Brands such as Tang powdered beverages, Kraft cheeses, Oreo cookies, Toblerone chocolate and Philadelphia cream cheese performing very well. Cost savings have been reinvested into building our brands."

"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," Satamian added.

Kraft Foods Middle East and Africa currently operates seven manufacturing facilities across the region that produce a variety of Kraft products. It also has a number of joint venture, contract manufacturing and license agreements in Morocco, Tunisia, Pakistan, UAE, Saudi Arabia, Egypt and South Africa. In addition to Tang, Kraft cheeses, Oreo, Toblerone, Philadelphia, the company markets a broad portfolio of iconic brands including Milka chocolates; LU biscuits; Maxwell House and Jacobs coffee; Ritz crackers; and Oscar Mayer meats.

"Overall, we are confident about the year ahead. We will continue to drive down costs, improve brand equity and profitability and continue to invest in our brands. Throughout the Middle East and Africa region, we have put in place the right organization structure, the right people and the right strategies, which will allow us, together with our partners to continue the momentum of the first quarter in 2009," concluded Satamian.