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Kraft Foods CEO outlines strategic growth priorities for Mondelez International

BY Allison Cerra

BOSTON — Speaking this week at the Barclays Capital Back-to-School Consumer Conference, Kraft Foods chairman and CEO Irene Rosenfeld outlined how the soon-to-debut global snacks company Mondelez International is "uniquely positioned to win in the marketplace."

Rosenfeld said the company touts such competitive advantages as leading positions in fast-growing categories; an advantaged geographic footprint with significant exposure to developing markets; a portfolio of the world’s favorite snacks brands; proven global innovation platforms; strong routes to market and world-class talent and capabilities.

As previously announced, Kraft Foods plans to spin off Kraft Foods Group, which will hold Kraft Foods’ North American grocery business on Oct. 1. Kraft Foods Group will trade on the NASDAQ stock exchange under the ticker symbol "KRFT." Following the spinoff, Kraft Foods will be renamed Mondelez International. Mondelez International will trade on the NASDAQ stock exchange under the ticker symbol "MDLZ."

"As our results show, we’ve significantly changed the trajectory of our business to deliver sustainable, profitable growth," Rosenfeld said. "With the spinoff of our North American grocery business, we’re now ready to unleash a global snacking powerhouse that’s poised to deliver top-tier revenue and earnings growth."

During the conference, Kraft Foods EVP and CFO Dave Brearton also outlined the company’s financial targets.

"Over the long term, we’re targeting organic revenue growth of 5% to 7% and double-digit operating EPS growth on a constant-currency basis," Brearton said. "These rates are higher than our previous long-term targets for Kraft Foods prior to the spin. For 2013, we expect to deliver results that are consistent with our long-term profile, specifically, organic net revenue growth of 5% to 7% and Operating EPS of $1.50 to $1.55, including a significant foreign exchange headwind of about 15 cents versus 2011 currency rates."

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Winn-Dixie donates 50-ft. trailer to Second Harvest North Florida

BY Michael Johnsen

JACKSONVILLE, Fla. — Winn-Dixie Stores on Wednesday announced the donation of a 50-ft. refrigerated semi-trailer to Second Harvest North Florida, the regional food bank that supplies food to 450 local nonprofit organizations across 17 counties in northern Florida.

Winn-Dixie donated the trailer after learning the food bank’s existing trailer was no longer road-worthy and is being used as an auxiliary refrigeration unit to store perishable foods. The trailer was loaded with approximately 13,000 lbs. of food to restock the food bank’s nearly empty warehouse.

"Winn-Dixie is in the food business. So it’s only natural that we’re eager to partner with Second Harvest to address what, to many, is an invisible problem," Winn-Dixie regional VP Randy Rambo said. "When we learned about Second Harvest’s need, we knew what had to be done in the short and long term."

The food donated today by Winn-Dixie is being put to immediate use through Second Harvest’s Mobile Pantry and its BackPack programs. The specially-wrapped trailer will act as a rolling billboard to educate the public about the region’s hunger problem while transporting food to senior centers, soup kitchens, youth and adult daycare facilities, homeless shelters, church food pantries and feeding programs for school children.

"This is a real godsend," stated Bruce Ganger, executive director for Second Harvest North Florida. "We are the link between surplus food and local nonprofits serving people in need. We have seen demand nearly quadruple in the past four years and we can’t serve the need without a trailer like this."

In 2008, Second Harvest distributed 7.6 million lbs. of food. In 2009, that increased to 11 million lbs. The need continued to grow to 19.3 million lbs. in 2010 and 20.1 million lbs. in 2011. Ganger said that in 2012, Second Harvest will distribute 24 million lbs. of food — equivalent to 20 million meals.

Ganger hopes today’s donation will encourage other companies and individuals to donate food or funding to Second Harvest. He said that a $1 donation provides seven meals. Many of the families the food bank serves make too much money to qualify for federal benefits but too little to make ends meet.

Three-and-a-half years ago, Winn-Dixie launched its food recovery program with Second Harvest North Florida. Prepackaged foods from the grocer’s in-store bakeries and delis, produce, and meat and seafood departments that had previously been discarded on their "sell by" dates are now donated to the food bank. The program was expanded company-wide later that year and has been replicated by other grocers.

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Kraft Foods outlines plans for North American grocery biz

BY Allison Cerra

BOSTON — The future North American grocery business of Kraft Foods will deliver steady and profitable top-line growth, consistent bottom-line growth and a superior dividend payout, according to the business’s future executive team.

Speaking this week at the Barclays Capital Back-to-School Consumer Conference, the future leadership team said that led by such brands as Kraft, Oscar Mayer and Maxwell House, Kraft Foods Group will be North America’s fourth-largest consumer packaged food and beverage company out of the gate, with revenues of approximately $19 billion in 2011. The team added that 10 of the company’s brands achieved sales of $500 million or more in 2011, while an additional 17 brands posted sales of $100 million or more in 2011. What’s more, approximately 80% of Kraft Foods Group’s revenue comes from categories in which the company holds the No. 1 or No. 2 market position.

Kraft Foods Group’s future growth will be driven by a four-part strategic plan: Making its people its competitive edge, executing with excellence, "turbocharging" its iconic brands and redefining efficiency. Additionally, the company expects to be well-positioned over the long term to deliver steady, reliable growth with a strong focus on cash flow to fund a highly competitive dividend and reinvestment in people, innovation and brand-building.

"I have the honor to introduce a new Kraft, one with the spirit of a startup and the soul of a powerhouse," said Tony Vernon, president of Kraft Foods North America and future CEO of Kraft Foods Group. "Our aim is to be North America’s best food and beverage company, and we’ll get there by continuing to offer products consumers love, creating a performance-based culture that motivates and excites employees and becoming the best investment in the industry."

As previously announced, Kraft Foods plans to spin off Kraft Foods Group, which will hold Kraft Foods’ North American grocery business on Oct. 1. Kraft Foods Group will trade on the NASDAQ stock exchange under the ticker symbol "KRFT." Following the spinoff, Kraft Foods will be renamed Mondelez International. Mondelez International will trade on the NASDAQ stock exchange under the ticker symbol "MDLZ."

"Tony and his team have a clear mission and are ready to deliver," said John Cahill, future executive chairman of Kraft Foods Group. "I’m confident we have the right plans and people in place to unlock the value of the North American grocery business after its spinoff."

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