Kraft Foods’ volume will grow about 1.5% for 2003, down from earlier expectations as third-quarter volume growth was 1% below projections.
Kraft Foods North America reported third-quarter revenues of $5.33 billion, up 1.9%. Kraft Foods International saw third-quarter revenues rise 8.2% to $2.15 billion, even though volume fell 3.2%. The quarter ended Sept. 30th.
Kraft blames the summer heat wave for soft chocolate and coffee sales in Europe. North American sales were mostly strong except for weak cookie sales due to higher prices, consumer switching and lackluster performance in new products.
Overall, third-quarter volume fell 0.2%, due in part to divestitures. Volume for ongoing businesses rose 1%, and North America volume rose 0.9%. Overall, gross profit fell 1.7% because higher commodity costs weighed down net revenue gains of 3.7%.
In North America, higher volume and prices were partially offset by higher promotional spending, including investments to manage price gaps and improve share trends on cheese, cold cuts, coffee and biscuits. Cheese, Meals and Enhancers division volume was up 1.5%, and net revenues rose 3.7%. Biscuits, Snacks and Confectionery division volume fell 3.9% and net revenues fell 2.2%. Beverages, Desserts and Cereals division volume rose 2.4%, bringing net revenues up 2%. Oscar Mayer and Pizza division volume rose 1.8% and net revenues grew 3.5%.
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