Kraft 2004 Annual Report Download - page 4

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(c) Narrative Description of Business
Markets and Products
The Company’s brands span five consumer sectors, as follows:
•Snacks—primarily cookies, crackers, salted snacks and confectionery;
•Beverages—primarily coffee, aseptic juice drinks and powdered beverages;
•Cheese & Dairy—primarily natural, process and cream cheeses;
•Grocery—primarily ready-to-eat cereals, enhancers and desserts; and
•Convenient Meals—primarily frozen pizza, packaged dinners, lunch combinations and
processed meats.
The following table shows each reportable segment’s participation in these five core consumer
sectors.
Percentage of 2004 Net Revenues by Consumer Sector(2)
Cheese & Convenient
Segment(1) Snacks Beverages Dairy Grocery Meals Total
Kraft North America Commercial:
U.S. Beverages ................ 39.3% 7.9%
U.S. Cheese, Canada & North
America Foodservice .......... 8.0% 6.7% 75.4% 19.8% 10.4% 23.1%
U.S. Convenient Meals ........... 0.1% 82.4% 13.2%
U.S. Grocery .................. 2.1% 42.1% 7.6%
U.S. Snacks & Cereals ........... 46.6% 1.2% 21.4% 16.8%
Total Kraft North America
Commercial ............... 56.7% 46.0% 76.6% 83.4% 92.8% 68.6%
Kraft International Commercial:
Europe, Middle East & Africa ...... 32.1% 44.8% 16.5% 7.7% 5.8% 23.4%
Latin America & Asia Pacific ....... 11.2% 9.2% 6.9% 8.9% 1.4% 8.0%
Total Kraft International
Commercial ............... 43.3% 54.0% 23.4% 16.6% 7.2% 31.4%
Total Kraft Foods Inc. ............ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Consumer Sector Percentage of
Total Kraft Foods Inc. ......... 28.0% 20.2% 19.3% 16.5% 16.0% 100.0%
(1) The amounts of net revenues, total assets and long-lived assets attributable to each of the
Company’s geographic regions and the amounts of net revenues and operating companies income
of each of the Company’s reportable segments for each of the last three years are set forth in
Note 14 to the Company’s consolidated financial statements contained in Part II hereof.
(2) Percentages are calculated based upon dollars rounded to millions.
3