Kraft Foods is ramping up investment in South Africa as it looks to expand in the market.
The US-based food giant said yesterday (20 April) that it will invest US$150m in local manufacturing in Africa over the next three years. The group said it will also invest in expanding its research and development facilities in Johannesburg and Alexandria. These sites will will serve as “centres of excellence” for Africa and the Middle East, the company revealed.
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During a visit to the country, Sanjay Khosla, president of developing markets, revealed that Kraft has added South Africa to its list of ten “priority markets”. These are areas that Kraft has identified as future growth drivers and they will receive “disproportionate investment” as the company looks to develop its presence overseas, Khosla said.
“We focus on just five categories, ten power brands and ten priority markets. South Africa is a priority market for us, where we focus on power brands like Cadbury chocolate,” said Khosla.
Kraft significantly expanded its footprint in South Africa through its 2010 acquisition of UK confectioner Cadbury. According to Sean Murphy, recently-appointed MD of Kraft’s unit in South Africa, one of the most difficult challenges ahead for the business will be the integration of two company cultures following its integration as a single legal entity, which was completed at the beginning of last month.
However, Murphy emphasised that as Kraft looks to expand in the region it plans to leverage Cadbury’s people as well as its established brands.
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By GlobalDataKraft indicated that it will now focus on developing its brands and categories in South Africa. The group presently operates in four categories across multiple brands and is about to launch a chocolate and chewing gum product onto the South African market.
