Kraft Foods CEO Irene Rosenfeld has emphasised the role played by product innovation in the company’s attempt to drive reliable top-line growth.
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Addressing investors at Kraft’s first annual shareholder meeting since its spin-off from Altria, Rosenfeld yesterday (24 April) revealed that the company aims to broaden its frame of reference in the categories in which it operates.
She cited the success of Oscar Mayer deli-shaved meats as an example, saying that the products were developed to leverage the power of the Oscar Mayer brand in the rapidly growing US deli meat sector. The product posted impressive growth of 49% last year, becoming a US$200m brand.
Turning to the company’s frozen pizza operations, Rosenfeld revealed that Kraft is planning future growth in market. “Our pizza business has been growing nicely. But, we see even more opportunity. Today, we’re going after an even bigger slice of the pizza pie — the $20bn local pizzeria business,” she said.
Kraft hopes to compete with pizzerias through the introduction of premium products such as the new DiGiorno Ultimate Pizza, which was launched this spring. “Look for it in your local store and give it a try. See if you don’t think it’s just as good as restaurant quality pizza – with at-home convenience and at half the price,” Rosenfeld said.
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By GlobalDataAnother growth area identified by the world’s second largest food group is the meal solutions category. Again, Kraft intends to drive growth in this market through innovation, Rosenfeld said.
Examining Kraft’s Oscar Mayer Deli Creations sandwiches, she demonstrated the way in which the company has combined its leading brands to create a product and extend its presence into a new category.
“Our new Oscar Mayer Deli Creations sandwiches combine a number of our leading brands that we sell individually – like Oscar Mayer meat, Kraft cheese, A.1. steak sauce and Grey Poupon mustard — to create convenient and delicious sandwiches. You simply pop it in the microwave, and in one minute, you’re eating a hot sandwich that tastes freshly baked,” Rosenfeld told her audience.
Healthy meal solutions designed to meet the growing demand for fresh better-for-you convenience products are also being developed and tested at Kraft.
“Another idea — that is being tested in select markets now — is our new line of salads, Fresh Creations. Again, we’re bringing together our proprietary packaging and trusted brands – like Oscar Mayer meats, Kraft cheese and salad dressings, and Planters nuts — to create branded, prepared salads that offer a whole new level of convenience, freshness and quality,” Rosenfeld commented.
Kraft shares were up slightly following the shareholder meeting, rising from an opening price of $33.25 to close at $33.40 yesterday on the New York stock exchange.
