Kraft Foods Inc.is an American confectionery, food and beverage corporation.

It markets many brands in more than 155 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Trident, Tang. 40 of its brands are at least 100 years old. The company is headquartered in Northfield, Illinois, a Chicago suburb. Its European headquarters is in Glattpark, Opfikon, Switzerland, near Zrich; Kraft is an independent public company; it is listed on the New York Stock Exchange and became a component of the Dow Jones Industrial Average on September 22, 2008, replacing the American International Group. Origin of the firm The firm today known as Kraft Foods was formed on December 10, 1923 by Thomas H. McInnerney. The firm was initially set up to execute on a rollup strategy in the then fragmented United States ice cream industry. Through acquisitions it expanded into a full range of dairy products. By 1930, eight years after it was founded, it was the largest dairy company in the United States and the world, exceeding Borden. McInnerney operated the Hydrox Corporation, an ice cream company located in Chicago, Illinois. In 1923 he went to Wall Street to convince investment bankers there to finance his scheme for consolidating the United States ice cream industry. He initially found "hard sledding" with one banker saying the dairy industry "lacked dignity." He persevered and convinced a consortium including Goldman Sachs and Lehman Brothers to finance a roll-up strategy.[9] As a result of his efforts, National Dairy Products Corporation was formed in 1923 in a merger of McInnerney's Hydrox with Rieck McJunkin Dairy Co of Pittsburgh, Pennsylvania. The resulting firm was then listed on the New York Stock Exchange with the offer of 125,000 shares having been oversubscribed. History of Kraft

Canadian-born and of German origin, James L. Kraft started a wholesale door-to-door cheese business in Chicago in 1903; its first year of operations was "dismal", losing US$3,000 and a horse. However, the business took hold and Kraft was joined by his four brothers to form J.L. Kraft and Bros. Company in 1909. As early as 1911, circulars and advertisements were in use by the company. In 1912, the company established its New York City, New York, headquarters to prepare for its international expansion. By 1914, thirty-one varieties of cheeses were being sold around the U.S. because of heavy product development, expansion by marketing, and opening a wholly owned cheese factory in Illinois. In 1915, the company had invented pasteurized processed cheese that did not need refrigeration, thus giving a longer shelf life than conventional cheese.The process was patented in 1916 and about six million pounds of the product were sold to the U.S. Army for military rations during World War I. In 1916, the company began national advertising and had made its first acquisition a Canadian cheese company. In 1924, the company changed its name to Kraft Cheese Company and listed on the Chicago Stock Exchange.In 1926, it was listed on the NYSE. The firm then began to consolidate the United States dairy industry through acquisition, in competition with National and Borden. Firms acquired included:

1995-Kraft Foods 1969-Kraft Co. Corp 1924-Kraft Cheese Company 1903-J.L. Kraft and Bros. Company

2009-KraftCadbury Merger

Kraft Timeline

At the time of the acquisition, National Dairy had sales of $315m compared with $85m for Kraft Phenix. National Dairy management ran the combined business. Following the KraftPhenix acquisition, the firm continued to be called National Dairy until 1969 when it changed its name to Kraftco. Historically, all of the firm's sales came from dairy products. However, the firm's product lines began to diversify away from dairy products to caramel candies, macaroni and cheese dinners and margarines. From the 1950s onward, the firm began to move away from low value added commodity dairy products, such as fluid milk. In 1933, the company began marketing by radio sponsorship. In 1935, the Sealtest brand of ice cream was launched as a unified national brand to replace the firm's numerous regional brands. During World War II, the company sent four million pounds of cheese to Britain weekly. Product development and advertising helped the company to grow during the postwar years, launching sliced process cheese and Cheez Whiz, a brand of process cheese sauce, in the 1950s. During these years, Thomas McInnerney, National Dairy's founder, and James L. Kraft, Kraft's founder, died, and at the end of the decade, the divisions became less autonomous and even diversified to the glass-packaging business with the acquisition of Metro Glass in 1956. In 1947, the company tested the marketing power of the emerging medium of television by producing an hour-long drama/anthology series, the Kraft Television Theatre. The product advertised on the program,MacLarens Imperial Cheese, was selected because "... [it had] not only had no advertising appropriation whatsoever, but had not even been distributed for several years." As described by internal documents of J. Walter Thompson the advertising firm which conceived of the marketing test the result was "although there was no other advertising support for it whatsoever, still grocery stores could not keep up with the demand. In 1961, the firm acquired Dominion Dairies of Canada, marking the first effort by the firm to expand into fluid milk and ice cream outside the United States. In the same year it also acquired The Southern Oil Company in Manchester, England. National Dairy becomes Kraft In 1969, the firm changed its name from National Dairy to Kraftco Corporation. The reason for the name change was given at the time: "Expansion and innovation have taken us far afield from the regional milk and ice cream business we started with in 1923. Dollar sales of these original products have remained relatively static over the past ten years and, in 1969 accounted for approximately 25% of our sales." At the same time, the firm transferred to Glenview, Illinois, in 1972. In 1976, its name changed to Kraft, Inc. to emphasize the

trademark the company had been known for and as a result of the fact that dairy, other than cheese, was now only a minor part of the company's sales. Reorganization also occurred after the name change. In 1980, Kraft merged with Dart Industries - makers of the Duracell brand of batteries, Tupperware brand of plastic containers, West Bend brand of home appliances, Wilsonart brand of plastics and Thatcher glass - to form Dart & Kraft During the 1980s, Dart & Kraft offered mixed results to its shareholders, as new acquisitions in the food business - such as Churny premium cheeses, Lender's Bagels, Frusen Gladje ice cream and Celestial Seasonings tea - slightly offset the lagging nonfood business Tupperware's decrease in sales and KitchenAid's (acquired soon after the merger) slide in market share - leading Dart & Kraft to spin off its nonfood business (except Duracell batteries) into a new entity (Premark International, Inc.) while changing its name back to Kraft, Inc. Premark was bought by Illinois Tool Works in 1999. In 1988, Kraft sold Duracell to private equity firm Kohlberg Kravis Roberts, who then put it into an initial public offering in 1989. Gillette bought Duracell in 1996, and itself was acquired by Procter and Gamble in 2005. Philip Morris acquisition and merger with General Foods At the end of 1988, Philip Morris Companies purchased Kraft for $12.9 billion. In 1989, Kraft merged with Philip Morris's General Foods unit - makers of Oscar Mayer meats,Maxwell House coffee, Jell-O gelatin, Budget Gourmet frozen dinners, Entenmann's baked goods, Kool-Aid, Crystal Light and Tang powdered beverage mixes, Post Cereals,Shake 'n Bake flavored coatings and numerous other packaged foods - as Kraft General Foods. Its aggressive product development was reversed after the merger, as it became slow in addressing issues on its product lines due to its size, and also company politics. In 1990, the company acquired Jacobs Suchard (a European coffee and confectionery giant) and Freia Marabou (a Scandinavian confectionery maker) to expand overseas as its business was heavily dependent on the U.S. In 1993, it acquired RJR Nabisco's cold cereal business (mainly Shredded Wheat and Shreddies cereals) while selling its Breyers ice-cream division to Unilever and its Birds Eye unit to Dean Foods. In 1994, it sold its frozen dinners unit to H.J. Heinz and in 1995, it sold its foodservice unit. In 1995, it changed its name to the present name, Kraft Foods. The same year, it sold its bakery division (except Lender's Bagels, which was sold in 1996 to CPC International), its candy division and its tablespreads division. Log Cabin syrup was sold in 1997. Financial expansion In 2000, Philip Morris (renamed Altria in 2003) acquired Nabisco Holdings for $18.9 billion and merged the company with Kraft Foods the same year. In 2001, Philip Morris sold 280 million Kraft shares via the third-largest IPO of all time, retaining an 88.1% stake in the company. In 2004, it sold its sugar confectionery division to Wrigley, while doing minor divestitures including its hot cereals division (Cream of Wheat) in 2007, its pet snacks division (MilkBone) in 2006, juice drinks andFruit2o in 2007 and some grocery brands in 2006.Altria announced on January 31, 2007, that it would spin off all the remaining Kraft Foods shares

to Altria's shareholders; each will be given approximately 0.7 share of Kraft for every Altria share they owned. Investor Nelson Peltz bought a three-percent stake at Kraft Foods and is talking with the executives on revitalizing the business, with options such as buying Wendy's fast food chain or selling off Post cereals and Maxwell House coffee. On January 31, 2007, after months of speculation, the company announced that its 88.1% stake would be spun off to Altria shareholders at the end of March 2007. Kraft is now an independent publicly held company. In July 2007, the company bought Groupe Danone's biscuit (cookie) and cereal division for $7.2 billion, including iconic French biscuit brand Lefvre-Utile.[19][20] While two years earlier firestorms of protest had arisen over plans for American PepsiCo's hostile takeover of the French company, Kraft's announcement was not met with the same protests, in part because Kraft agreed not to close French factories and keep the new merged divisions headquarters near Paris for at least three years. In November 2007, Kraft agreed to sell its cereal unit to Ralcorp Holdings, a major privatelabel food maker, for $2.6 billion in a form of a spin-off merger. This would add 50% to Ralcorp's sales, to $3.3 billion, and will be used for Kraft's debt payment, which is at $13.4 billion, in danger of a downgrade by Standard and Poor's. In February 2008, Berkshire Hathaway Inc. run by billionaire investor Warren E. Buffett announced that it had acquired an 8% stake in Kraft worth over $4 billion. Buffett's business partner Charles Munger had also invested over $300 million in Kraft. Berkshire Hathaway owns 5.6% of the outstanding stock of Kraft Foods, as reported in the holding company's 2010 annual report.

Cadbury plc is a British confectionery company, the industry's second-largest globally after the combined Mars-Wrigley Headquartered in Cadbury House in the Uxbridge Business Park in Uxbridge, London Borough of Hillingdon, England and formerly listed on the London Stock Exchange, Cadbury was controversially acquired by Kraft Foods in February 2010. After integration the combined Cadbury and Kraft companies became the largest confectionery company in the world. The company was a constant constituent of the FTSE 100 from the index's 1984 inception until its 2010 takeover. The firm was known as "Cadbury Schweppes plc" from 1969 until a May 2008 demerger, in which its global confectionery business was separated from its U.S. beverage unit, which has been renamed Dr Pepper Snapple Group.

Cadbury UK is a subsidiary of Cadbury plc, based in the Bournville suburb of Birmingham.

History In 1824, John Cadbury began selling tea, coffee, and drinking chocolate, which he produced himself, at Bull Street in Birmingham, England. He later moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production. John Cadbury became a partner with his brother Benjamin and the company they formed was called 'Cadbury Brothers of Birmingham'. The brothers opened an office in London and in 1854 they received the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. In the 1850s the industry received a much needed boost with the reduction in the high import taxes on cocoa, allowing chocolate to be more affordable to everyone. Taking over the business in 1861, John Cadbury's sons Richard and George decided in 1878 that they needed new premises, they acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the outskirts of Birmingham. Located next Stirchley Road railway station, which itself as opposite the canal, they renamed the estate Bournville and opened the Bournville factory the following year.

In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900 the estate included 313 cottages and houses set on 330 acres (130 ha) of land.

In 1905, Cadbury launched its Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1913. Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury was the brand leader in the United Kingdom. After the war, the Bournville factory was redeveloped and mass production began in earnest. In 1918, Cadbury opened their first overseas factory in Hobart, Tasmania and in 1919 undertook a merger with J. S. Fry & Sons, another chocolate manufacturer, resulting in the integration of well-known brands such as Fry's Chocolate Cream and Fry's Turkish Delight. During World War II, parts of the Bournville factory were turned over to war work, producing milling machines and seats for fighter aircraft. Workers ploughed football fields to plant crops. As chocolate was regarded as an essential food, it was placed under government supervision for the entire war. The wartime rationing of chocolate ended in 1949, and normal production resumed. Cadbury subsequently built new factories and had an increasing demand for their products. Merger with Schweppes

Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969 Cadbury Schweppes went on to acquire Sunkist, Canada Dry, Typhoo Tea and more. In the US, Schweppes Beverages was created and the manufacture of Cadbury confectionery brands was licensed to The Hershey Company. Snapple, Mistic and Stewart's (formerly Cable Car Beverage) were sold by Triarc to Cadbury Schweppes in 2000 for $1.45 billion. In October of that same year, Cadbury Schweppes purchased Royal Crown from Triarc. Demerger of Cadbury and Schweppes In March 2007, it was revealed that Cadbury Schweppes was planning to split its business into two separate entities: one focusing on its main chocolate and confectionery market; the other on its US drinks business.The demerger took effect on 2 May 2008, with the drinks

business becoming Dr. Pepper Snapple Group Inc. In December 2008 it was announced that Cadbury was to sell its Australian beverage unit to Asahi Breweries. Recent developments In October 2007, Cadbury announced the closure of the Somerdale Factory, Keynsham, formerly part of Fry's. Between 500 and 700 jobs were affected by this change. Production transferred to other plants in England and Poland. In 2008 Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was sold to Tangerine Confectionery for 58million cash. This sale included factories at Pontefract, Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800 employees. In mid-2009 Cadbury replaced some of the cocoa butter in their non-UK chocolate products with palm oil. Despite stating this was a response to consumer demand to improve taste and texture, there was no "new improved recipe" claim placed on New Zealand labels. Consumer backlash was significant from environmentalists and chocolate lovers. By August 2009, the company announced that it was reverting to the use of cocoa butter in New Zealand. In addition, they would source cocoa beans through Fair Trade channels.In January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment. Operations United Kingdom Cadbury plc also owns Trebor Bassett, Fry's, Maynards and Halls. The confectionery business in the UK is called Cadbury UK (formerly Cadbury Trebor Bassett) and, as of August 2004, had eight factories and 3,000 staff in the UK. Biscuits bearing the Cadbury brand, such as Cadbury Fingers, are produced under licence by Burton's Foods. Ice cream based on Cadbury products, like 99 Flake, is made under licence by Frederick's Dairies. Cadbury cakes and chocolate spread are manufactured under licence by Premier Foods, but the cakes were originally part of Cadbury Foods Ltd with factories at Blackpole in Worcester and Moreton on the Wirral with distribution depots throughout the UK. Ireland Cadbury Ireland Limited is a confectionery company in Ireland based in Coolock in Dublin. Cadbury opened their first Irish factory in Ossary RD., Dublin in 1933. More than 250 million worth of Cadbury chocolate is produced in Ireland, is exported every year, bringing Ireland valuable earnings from abroad. United States Cadbury's presence in the States consists of the confectionery unit Cadbury Adams, manufacturers of gum and mints but not chocolate. Cadbury merged with Peter Paul in 1978.Ten years later Hershey acquired the chocolate business from Cadbury. Accordingly,

although the Cadbury group's chocolate products have been sold in the US since 1988 under the Cadbury name, the chocolate itself has been manufactured by Hershey and can be found in their chocolate stores. Prior to the May 2008 demerger, the North American business also contained beverage unit Cadbury Schweppes Americas Beverages. In 1982, Cadbury Schweppes purchased the Duffy-Mott Company. Australia and New Zealand On 27 February 2009 the confectionery and beverages businesses of Cadbury Schweppes Pty Ltd in Australia were formally separated and the beverages business began operating as Schweppes Australia Pty Ltd. In April 2009, Schweppes Australia was acquired by Asahi Breweries. India Cadbury India began its operations in India in 1948 by importing chocolates. It now has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. Executive pay In 2008 Todd Stitzer, Cadbury's CEO, was paid a 2,665,000 bonus. Combined with his annual salary of 985,000 and other payments of 448,000 this gives a total remuneration of over 4 million. Products Major chocolate brands produced by Cadbury include the bars Dairy Milk, Crunchie, Caramel, Wispa, Boost, Picnic, Flake, Curly Wurly, Chomp, and Fudge; chocolate Buttons; the boxed chocolate brand Milk Tray; and the twist-wrapped chocolates Cadbury Heroes. As well as Cadbury's chocolate, the company also owns Maynards and Halls, and is associated with several types of confectionery including former Trebor and Bassett's brands or products such as Liquorice Allsorts, Jelly Babies, Flumps, Mints, Dolly Mix, Black Jack chews, Trident gum, and Softmints. Headquarters Cadbury's headquarters (Head Office UK) is the Cadbury House in the Uxbridge Business Park in Uxbridge, London Borough of Hillingdon, and England. Cadbury occupies 84,000 square feet (7,800 m2) of space in its head office, which is Building 3 of the business park. Cadbury, who leases space in the building it occupies, had relocated from central London to its current head office.

Cadbury's previous head office was in 25 Berkeley Square in Mayfair, City of Westminster. In 1992 the company leased the space for 55 per 1 square foot (0.093 m2). In 2002 the company agreed to pay 68.75 per square foot. The Daily Telegraph reported in 2007 that the rent was expected to increase to a "three-figure sum." In 2007 Cadbury Schweppes had announced that it was moving to Uxbridge to cut costs. As of that year the head office had 200 employees. After the Kraft Foods acquisition of Cadbury, Kraft announced that the Cadbury head office would remain the "Cadbury House."

The BCG matrix shows how Kraft can leverage Cadburys dominance in confectionery and chocolate biz in India. Cadburys revenue can be utilized to build up Krafts financial health quickly in India. Kraft, in order to gain a significant presence in Indiadeveloping countries, needs to work on bringing Kraft cheese through the organized route and position oreo and toblerone accordingly.