NORTHFIELD, Ill. - (May 3, 2012) - On March 6,
OREO celebrated a century of unleashing the kid
inside us all. But turning 100 has not slowed down
this global brand, which grew nearly 25 percent in 2011
alone. And that momentum continued into the first
quarter of 2012, with OREO growing double digits
in North America and nearly 40 percent in Europe and
Developing Markets.
"The twist, lick and dunk of an OREO brings people
together with a universal ritual cherished in more than 100
countries where OREO is sold," said Irene
Rosenfeld, Chairman and CEO. "We're delighted to
bring the joy of the world's top-selling cookie to more
people than ever. In fact, OREO has had
average growth of more than 17 percent annually since
2006. It surpassed $2 billion in annual revenues in
2011 - doubling sales over just five years ago."
A Billion-Dollar Success in Developing Markets
For its first seven decades, OREO was primarily a
North American brand, with limited expansion into
Developing Markets. And while the brand grew double
digits in developed regions like North America and Europe
in 2011, Developing Markets is now the brand's leading
growth engine. Today, OREO is sold in about
85 Developing Markets from China and India to Argentina and
Mexico. Over the past five years, OREO has
grown nearly 37 percent on average annually in Developing
Markets, including gains of 50 percent in 2011. The
brand is on track to reach $1 billion in annual revenues in
Developing Markets this year.
"OREO is one of 10 power brands in Developing
Markets where we put disproportionate focus and resource,"
said Sanjay Khosla, President, Developing Markets. "After
its first 95 years, OREO had less than $200
million in annual revenues in Developing Markets. And
by the end of 2012, we plan to make OREO a
billion-dollar Developing Markets success - nearly five
times the net revenues of just five years ago."
Three key strategies helped transform OREO from an
American favorite to a truly global icon.
A Global Cookie with a Local Twist
The original OREO cookie has not changed much
since its introduction -- two round chocolate cookie wafers
joined by sweet vanilla crème filling. It remains the
top-selling variety of OREO cookies worldwide.
But using a "glocal" approach that combined the best of
global with the best of local, OREO tapped into
local market insights to grow sales incrementally with
innovative local flavors, forms and limited edition
seasonal items. Today OREO comes in a
variety of local flavors in markets around the world, such
as OREO green tea ice cream in China or
OREO Duo in Argentina with banana and dulce de
leche crème. OREO also is enjoyed in fun
shapes and forms such as Triple Double OREO in the
U.S., OREO Wafer Rolls in China and the
OREO Trio in Mexico. In the U.S,
OREO delights kids of all ages with seasonal
items, including those celebrating Halloween, spring and
American football.
Universal Message Speaks Locally
Over the years, the makers of OREO learned that
the iconic "twist, lick, dunk" ritual was adored around the
world and that slowed-down, carefree family moments were
increasingly rare and cherished by moms everywhere.
With these global insights, the brand launched the first
"moments" television advertising campaign in 1989 that
captured the unique connections shared over OREO
and milk. But for many years, the campaign in other markets
consisted of U.S. ads that were quickly treated with a
local voiceover or reshot with local talent.
Beginning in 2008, the brand introduced ads that told
culturally relevant, local stories, all the while keeping
the global "twist, lick, dunk" framework at the
forefront.
In 2009, the brand's global appeal was taken to
Facebook. Originally an English language community,
OREO soon created a truly global community
reaching fans from over 200 countries in 10 different
languages. OREO then began customizing its
messaging to reach consumers in their local language about
OREO news in their local markets. As a
result, OREO is among the top five most popular
brands on the social media site, captivating a Facebook community of
over 25 million fans.
Adding Stamps to its Passport
Kraft Foods, the world's largest biscuit baker, accelerated
OREO growth with several acquisitions that
increased the brand's global footprint across Europe, Latin
America and Asia. In 2006, the company acquired the
Spanish and Portuguese operations of United Biscuits while
regaining rights to all Nabisco trademarks,
including OREO, in the European Union, Eastern
Europe, the Middle East and Africa. In 2007, Kraft
Foods acquired Danone's global biscuit business, giving
OREO a bigger footprint and enhanced biscuit
capabilities in critical emerging markets such as China,
Russia, Poland, Indonesia and Malaysia. Finally, the
acquisition of Cadbury in 2010 increased the brand's global
scale and distribution and enabled the launch of
OREO in India.
###
Contact:
Lisa Gibbons
(847) 646-4538
news@kraftfoods.com
ABOUT KRAFT FOODS
Kraft Foods Inc. (NYSE: KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love. Proudly marketing delicious biscuits, confectionery, beverages, cheese, grocery products and convenient meals in approximately 170 countries, Kraft Foods had 2011 revenue of $54.4 billion. Twelve of the company's iconic brands - Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Tang and Trident - generate revenue of more than $1 billion annually. On Aug. 4, 2011, Kraft Foods announced plans to divide and create two independent public companies: a high-growth global snacks business and a high-margin North American grocery business. The transaction is expected to be completed before the end of 2012. A leader in innovation, marketing, health & wellness and sustainability, Kraft Foods is a member of the Dow Jones Industrial Average, Standard & Poor's 500, Dow Jones Sustainability Index and Ethibel Sustainability Index. Visit kraftfoodscompany.com and facebook.com/kraftfoodscorporate.
FORWARD-LOOKING STATEMENTS
This press release contains a number of forward-looking
statements. Words, and variations of words such as
"plans" and similar expressions are intended to identify
our forward-looking statements, including but not limited
to, that OREO is on track to reach $1 billion in
annual revenues in Developing Markets. These
forward-looking statements are subject to a number of risks
and uncertainties, many of which are beyond our control,
which could cause our actual results to differ materially
from those indicated in our forward-looking
statements. Such factors include, but are not limited
to, continued volatility of input costs, pricing actions,
continued weakness in economic conditions, risks related to
operating in emerging markets and tax law changes.
Please also see our risk factors, as they may be amended
from time to time, set forth in our filings with the SEC,
including our most recently filed Annual Report on Form
10-K and subsequent reports on Forms 10-Q and 8-K.
Kraft Foods disclaims and does not undertake any obligation
to update or revise any forward-looking statement in this
press release, except as required by applicable law or
regulation.
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