Dairy Processor News / Top 100
Quarterly earnings

Natural cheeses, Velveeta star in Kraft Foods Group's Q1 results

The company saw "significant consumption growth" in its natural cheeses and Velveeta business in the first three months of the year.

May 2, 2013

Kraft Foods Group's Cheese segment saw significant consumption growth in Kraft natural cheeses and Velveeta in the first three months of the year. The  segment's operating income growth reflected solid volume/mix, overhead cost savings and lower manufacturing costs driven by net productivity that were partly offset by the negative impact of pricing net of commodity costs and higher Restructuring Program costs.

Kraft, Northfield, Ill., made the comments today in releasing its first quarter 2013 results. Dairy Foods named Kraft the 2011 Processor of the Year.

"We're off to a solid start," said Tony Vernon, CEO of Kraft.  "Our first quarter results reflect strong returns on our new product innovations to date, as well as the fact that our cost savings outpaced our plans to reinvest in our brands.  In the months to come, we'll execute our marketing playbook more broadly across our portfolio and we expect to see good progress in both top- and bottom-line performance for the full year."

Net revenues in the first quarter grew 2.1% to $4.5 billion. Organic Net Revenues increased 2.1% from volume/mix gains of 2.4 percentage points that were partly offset by a 0.3%age point impact from lower pricing.

In the Grocery segment, Kraft said top-line gains from investments in innovation behind brands such as Velveeta dinners and Kraft Macaroni & Cheese were offset by weakness in JELL-O ready-to-eat desserts, Kraft dressings and Planters snack nuts. Operating income declined as a combination of marketing investments, lower volumes and higher Restructuring Program costs more than offset significant overhead cost savings.

In the International & Foodservice segment, strong revenue growth in Canada from Cracker Barrel cheese, Philadelphia cream cheese and MiO liquid water enhancers was partially offset by product line pruning in Foodservice.  Double-digit operating income growth was driven by improved product mix, and lower overhead costs, partly offset by a significant increase in marketing.

For more information, visit the Kraft website.

Did you enjoy this article? Click here to subscribe to Dairy Foods Magazine. 
You must login or register in order to post a comment.



Image Galleries

Agropur, Natrel Division USA, St. Paul, Minn.

 At its Natrel Division plant in St. Paul, Minn, Agropur makes rBST-free white and flavored milk, heavy whipping cream, half n half, buttermilk, organic milk, nutritional drinks and shakes and sport drinks. Nondairy beverages (soy, rice, coconut, and almond) coffee creamers, broth and sauces. 


This photo gallery contains additional, unpublished photos of dairy processing facilities featured in Dairy Foods magazine. To view more Behind the Scenes galleries go to our archives page!

9/23/14 2:00 pm EDT

Milk/Flavored Milk and Non-Dairy Beverages: Opportunities in the Beverage Segment

This free webinar will cover methods and ingredients available to increase protein levels, processing issues related to high-protein beverages, future ingredients and opportunities for protein fortification, adding value to milk and beverages, niche markets for high-protein milk and beverages and case studies of Core Power and Fairlife.

Frozen Desserts

What’s your preferred frozen dessert?
View Results Poll Archive

Dairy Foods Magazine

september cover

2014 September

Joseph Gallo Farms wins honors for its cheeses, sustainability practices; plus we look at what's happening with frozen desserts.

Table Of Contents Subscribe


Tharp & Young on Ice Cream: An Encyclopedic Guide to Ice Cream Science and Technology

An at once an all-inclusive guide to the meaning of hundreds of technical terms and ideas needed for ice cream manufacturing, as well as a practical introduction to the ingredients, freezing methods, flavoring, and packaging of ice cream, sherbet, sorbet, gelato, frozen yogurts, novelties and many other kinds of frozen desserts.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Dairy Foods Buyers Guide

cover df july 2013Resource for buyers in the dairy processing industry to find information on the leading suppliers and manufacturers.

Find Ingredients, Equipment, Distribution, R&D and More.

Start Your Search Today.


Facebook logo 40px 2-12-13 Twitter logo 40px 2-12-13  YouTube logo 40px 2-12-13  LinkedIn logo 40px 2-12-13google plus