US food giant Kraft has reaffirmed its 2005 earnings guidance and said it will continue to invest in new products.

"In 2005, we remain fully committed to our Sustainable Growth Plan and expect the progress that we made in 2004 to continue," Kraft CEO Roger Deromedi said. "Our new product pipeline and marketing programmes are promising, our portfolio is becoming more focused through divestitures and acquisitions, and our cost-restructuring programme is on track."

As part of its portfolio focus strategy, the company is aiming for leadership in four global core categories that represented more than half of the company's 2004 total revenues: cheese and dairy, biscuits, coffee, and specialty refreshment beverages.

Deromedi said Kraft is investing in new product ideas that address important unmet consumer needs, offer multiple incremental extension opportunities, can be leveraged across trademarks, provide geographic expansion potential, or use proprietary technologies.

Kraft confirmed its 2005 full-year earnings-per-share guidance of $1.75-$1.80 on a continuing operations basis. The company also reaffirmed its long-term financial targets, which include 3% growth in ongoing, constant currency revenues and 6-9% growth in earnings share.