Last Updated Aug 20, 2007 6:28 PM EDT
Like many other packaged food companies with popular brand names, Kraft Foods has struggled to keep up with rapidly changing consumer tastes. The company thrived in an era when consumers bought all their food at grocery stores lined with aisles of brand-name products. [...]Kraft management isn't dumb to its problems, however. The company is working to expand its healthy lifestyle initiative and grow the corresponding Boca and Back-to-Nature brands. It also added the Sensible Solutions labeling system across its portfolio to highlight "smart" food choices that meet certain nutrition criteria. Kraft's branding and product developmet in the healthy lifestyle category falls in line with competitors' moves, like ConAgra's recent additions to its Healthy Choice line. But with Nelson Peltz wielding a red-hot branding iron, Kraft may have extra impetus to take the lead.
But now, consumers are shopping at superstores like Costco and specialty stores like Whole Foods and Trader Joe's that offer organic products or private-label brands that have cut into brand-name dominance. And at a time when consumers are demanding healthier, more natural products, Kraft's portfolio of processed foods has struggled to remain relevant.
(Image of Kraft Foods Product Assortment by Kraft Foods Australia)