Kraft Foods Inc.

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Kraft Foods is a packaged food company formerly owned by tobacco giant Philip Morris/Altria[1]. In 2006, they purchased about $8.2 billion worth of commodities. The company is one of the world’s largest purchasers of several agricultural commodities, including such varied products as coffee, cocoa and select nuts.

People

  • Rob Rees - Chairs the independent steering committee for health4schools, a community project funded by Kraft Foods.[2]

Board of Directors

Employees

2006 Total Number of Kraft Employees by Region[3]:

  • North America 46,812
  • Asia Pacific 5,140
  • Latin America 15,703
  • European Union 16,039
  • Eastern Europe, Middle East and Africa (EEMA) 6,334

Finances

Since Kraft became independent from Altria in March 2006 it has become a magnet for big-name investors who like undervalued stocks. Irene Rosenfeld had developed a three year recovery plan for the company. By 2009, she promises Kraft will be able to hit 7% to 9% annual growth in earnings per share and sales from the company's existing brands 4% annually. At the present time (Oct 2007) Rosenfeld forecasts revenues will increase at least 4% in 2007, to $35.7 billion, excluding the effects of the company's $7.2 billion purchase of part of Groupe Danone (GDNNY). That's higher than the company's 0.7% growth in 2006, but short of the company's targets and also short of the 5% increases the company delivered from 2002 to 2005.

Kraft will earn $2.85 billion in 2007, around $1.80 to $1.82 a share, leaving out one-time items. Add those in, and Kraft's net income drop to $2.45 billion, its poorest year since 2001[4].

Policy

Kraft claim that they are " are committed to responsible business conduct. We constantly strive to stay in touch with society’s changing expectations of us and determine where we can help make a meaningful difference to society." [5]:

To this end Kraft have several policy initiatives in various areas such as sustainable farming, nutrition and wellbeing and quality and food safety.

Nutrition and wellbeing

Under the policy area of nutrition and wellbeing Kraft claim they are investing in tackling childhood obesity worldide. Kraft UK & Ireland, are "helping children to find out about healthy lifestyles and create their ideal playgrounds through health4schools". This programme claims to take a holistic approach to "nurturing life-long healthy lifestyle habits in children, by encouraging them to grow their own food, plan and cook healthy meals, appreciate the benefits of breakfast and engage in active play". Each school that participates in ther programme receives a package of support and resources worth €7000, including a grant to pay for improvements to the playground. The programme is currently underway in 75 Gloucestershire schools and will Kraft are aiming to extend the programme to at least 100 schools in the future. The programme has been developed in partnership with the Local Education Authority and Business in the Community[6]. At the same time they have remained robust in defence of their policies on portion size, fat and sugar levels in certain products, labelling and advertising to children above 6.

Child labour

Kraft buy massive quantities of coffee and cocoa and have a statement on child labour which they claim is based on International Labor Organization (ILO) conventions and national laws. They state their comitment to "restrict employment to those age 15 or older, or the local minimum employment age, or the mandatory school age, whichever is higher."

They go on to state that they " communicate this policy to our direct suppliers, licensees and joint ventures, and we include a clear contractual obligation to meet these requirements as an ongoing condition of our business relationship. " This however, is then followed by the following comment " Global supply chains for raw materials, including some agricultural products of relevance to our business, can be lengthy and quite complex, reducing our potential influence and adding further hurdles to the challenge of understanding and effectively addressing issues that may exist." This appears to give Kraft a "get out" clause whereby any breaches of their code would have occured due to the complexities on the business and would be the fault of local producers not Kraft.

What is also troubling is what appears to be missing from the Kraft statement. There does not appear to be any commitment to a regime of inspection in the issue of child labour, or any commitment to pay for such a regime. And at no point does the statement indicate what would happen to any producers or supplier who broke the Karft code on child labour[7].

Affiliations

PR/Lobbying Agencies/People

Corporate lobby groups

Community and Social Responsibility initiatives

Other services

Notes

  1. Altria Group Inc 2007 Altria Group, Inc. Completes Spin-off of Kraft Foods Inc. Accessed 2007
  2. Rob rees profile, LinkedIn, accessed 12 July 2016.
  3. Kraft People accessed 2007
  4. Michael Arndt (2007)Kraft at Work Burnishing Its Brands Viewed 2007
  5. Kraft home Accessed 2007
  6. Kraft Community Accessed 2007
  7. Kraft People Policy Accessed 2007
  8. American Council for Fitness and Nutrition Members Accessed 2007
  9. British Nutrition Foundation 2007 BNF Member Companies Accessed 2007
  10. Kraft Foods Inc Community-based Health and Wellness Programs Accessed 2007
  11. European Food Information Council About EUFIC Accessed 2007
  12. The Bivings Group 2007 Client List accessed 2007
  13. Paul Goldberg (2003) Cancer PR Firms Still Addicted to Tobacco PR Watch, Third Quarter 2003, Volume 10, No. 3. Accessed 2007
  14. Society of European Affairs Professionals 2007 Members of SEAP Accessed 2007
  15. Corporate Watch GLENEAGLES: Lexis PR and corporate sponsorships Accessed 2007
  16. Porter Novelli Porter Novelli Announces New Hungarian Partner Noguchi Communications Joins Agency Network Accessed 2007
  17. Interbrand 2007 In A Biskit: Stops the Munchies Accessed 2007
  18. Food and Drink Federation 2007 Full Members Accessed 2007
  19. American Benefits Council Memberships Accessed 26th February 2008
  20. Kraft 2007 Kraft Cares: Focusing Our Giving to Make a Difference Accessed 2007
  21. Brambles 2007 Chep Overview Accessed 2007
  22. Data from Internet Archive holdings of the Science Media Centre website, 2002-2013.