Kraft results held back by dairy products

INTENATIONAL – Food group Kraft this week announced strong overall growth in its results, but dairy products lagged behind other parts of the company.

For 2001, gross Kraft profit reached $16.3 billion (18.9 billion euro), a 29% increase on $12.6 billion (14.6 billion euro) in 2000.

However, in North America, Kraft’s cheese, meals and enhancers group volume was up by just 3.1% over 2000.

The company’s performance in the North American cheese market dropped as it pulled out of lower margin non-branded cheese. The company said that within cheese, sales of Kraft grated cheese and Kraft natural cheese increased. However, this was offset by declines in Velveeta process cheese loaves and Philadelphia cream cheese, as retailers continue to reduce trade inventory levels.

North American sales of enhancers also increased, driven by strong consumption of Kraft Miracle Whip, Kraft mayonnaise, and Kraft salad dressings.

Across Europe, the Middle East and Africa, Kraft’s volume grew 3.7%. This was mostly due to strong gains in Central and Eastern Europe and the European Union. The company said that sales of Dairylea Lunchables and Kraft salad dressings in the UK were strong.