Profits at Kraft Foods Peru have taken a major leap over the past year. In spite of the fact that the company recently changed ownership and name (from Nabisco Peru), profits increased more than 375% since 1999. Sales rose from US$650,000 in 1999 to US$3m. Improved performance is attributed to a cost reduction of 3.6% accompanied by better operational efficiency. Even though the cost of sales rose moderately, this was more than offset by a reduction of over 20% in administrative costs. By streamlining its operations, Kraft has positioned itself to benefit from Peru's long awaited economic recovery.