Kraft Unveils Plan for European Growth
NORTHFIELD, Ill. (
) --
Kraft Foods
(KFT)
is relying on coffee, cookies, chocolate and cheese to rev its productivity in Europe.
The food maker announced today that it will be focusing on higher-margin, priority brands, like Oreo, Philadelphia cream cheese and Kenco coffee, to drive European revenue growth. The company is targeting a 1% to 3% increase.
Kraft expects operating income margins will climb to the mid-teens by 2011, up from 12.3% in 2008.
Earlier this week, Kraft
offered $16.7 billion in cash and stock for Cadbury
(CBY)
, but the British candy maker rejected the offer, saying it was too low.
If the deal were to eventually go through, Kraft-Cadbury would have more than $50 billion in combined revenue.
-- Reported by Jeanine Poggi in New York
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