Kraft 2012 Annual Report Download - page 4

We were initially organized as a Delaware corporation in 1980. In March 2012, we redomesticated to Virginia and changed
our name from “Kraft Foods Global, Inc.” to “Kraft Foods Group, Inc.” We were a wholly owned subsidiary of Mondele¯z
International until October 1, 2012. On that date, Mondele¯z International spun-off Kraft Foods Group, comprising its North
American grocery business, to Mondele¯ z International’s shareholders (“Spin-Off”). In connection with the Spin-Off,
Mondele¯z International undertook a series of transactions to separate net assets and entities. As a result of these
transactions, Mondele¯ z International now holds the global snacks business, and we, Kraft Foods Group, now hold the
North American grocery business.
To effect the Spin-Off, Mondele¯ z International distributed all of the shares of Kraft Foods Group common stock owned by
Mondele¯z International to its shareholders on October 1, 2012 (“Distribution”). Holders of Mondele¯z International common
stock received one share of Kraft Foods Group common stock for every three shares of Mondele¯ z International common
stock held on September 19, 2012. Mondele¯ z International structured the distribution to be tax free to its U.S. shareholders
for U.S. federal income tax purposes. As a result of the Spin-Off, we now operate as an independent, publicly traded
company.
In December 2012, we changed our fiscal year end from December 31 to the last Saturday in December. Therefore, our
2012 fiscal year ended on December 29, 2012.
Reportable Segments
We manage and report operating results through five reportable segments. Our reportable segments are Beverages,
Cheese, Refrigerated Meals, Grocery, and International & Foodservice.
Our principal brands and products within each reportable segment at December 29, 2012 were:
Beverages Maxwell House, Gevalia, and Yuban coffees; Tassimo hot beverage system (under
license from Mondele¯ z International); Capri Sun (under license) and Kool-Aid
packaged juice drinks; Crystal Light, Kool-Aid, and Country Time powdered
beverages; and MiO liquid concentrate.
Cheese Kraft and Cracker Barrel natural cheeses; Philadelphia cream cheese; Kraft and
Deli Deluxe processed cheese slices; Velveeta and Cheez Whiz processed cheeses;
Kraft grated cheeses; Polly-O and Athenos cheese; and Breakstone’s and Knudsen
cottage cheese and sour cream.
Refrigerated Meals Oscar Mayer cold cuts, hot dogs, and bacon; Lunchables lunch combinations;
Claussen pickles; and Boca soy-based meat alternatives.
Grocery Planters nuts, peanut butter, and trail mixes; Kraft and Kraft Deluxe macaroni and
cheese dinners; Kraft and Miracle Whip spoonable dressings; Kraft and Good
Seasons salad dressings; Velveeta shells and cheese dinners; Jell-O dry packaged
desserts; Jell-O refrigerated gelatin and pudding snacks; Cool Whip whipped topping;
A.1. steak sauce; Kraft and Bull’s-Eye barbecue sauces; Stove Top stuffing mix; Jet-
Puffed marshmallows; Velveeta Cheesy Skillets and Taco Bell Home Originals (under
license) meal kits; Shake ‘N Bake coatings; Baker’s chocolate and baking ingredients;
and Grey Poupon premium mustards.
International &
Foodservice
International & Foodservice products span all of our segments. Canadian brand
offerings include Kraft peanut butter and Nabob coffee, as well as a range of products
bearing brand names similar to those marketed in the U.S. The Foodservice business
sells primarily branded products including Maxwell House coffee, A.1. steak sauce,
and a broad array of Kraft sauces, dressings and cheeses.
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