Kraft 2003 Annual Report Download - page 15
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Wemustbecomeamoreglobalcompany.Thegreaterourscale,
themoreprofitableourgrowth.Andnowhereisthatmoretruethan
inthedevelopingworld,wherefasterpopulationandincomegrowth
ratesaredrivingincreaseddemandforbrandedconsumergoods.
Today,developingmarketsaccountfor84%oftheworld’spopulation,
30%ofitspackagedfoodconsumptionand23%ofitsgrossdomestic
product.Yet,thesemarketsaccountforonly11%ofourrevenues.
We’refocusingfirstoncountrieslikeRussia,China,BrazilandMexico,
wherewehavethescaleandefficiencytogrowmostprofitably.We’re
growingbyexpandingourcorecategorieswheretheyalreadyexist.
So,forexample,inChinawearebuildingourbiscuitsbusinesswithnew
introductionsthatleverageourglobaltechnologiesbutdeliveralocaltaste.
We’realsoexpandingourcorecategoriesintocurrentmarketswhere
theydon’tyetexist.Forinstance,weaddedPhiladelphiacreamcheeseto
ourestablishedportfolioofproductsinBrazillastyear,andafteronlysix
months,webecamethenumberonecreamcheeseinthecountry.
Butwe’realsotargetingnewmarketswherewecanbuildscaleand
ultimatelyaccelerategrowth.Ouracquisitionacoupleofyearsagoin
RussiaoftheStollwerckconfectionerybusinessisagoodexample.With
thescalewegained,notonlydidwegrowtheconfectionerybusinesswe
acquired,wealsowereabletoexpandourcoffeebusinessaswelland
drivemorethan14%growthinoverallvolumeinRussiain2003.
We’renowathomeinmorethan150countriesaroundtheworld.
Butwe’veonlybeguntoreachourglobalgrowthpotential.