Kraft focuses on Middle East and China
The company is looking to increase its production capacity in both regions to boost sales.
The company has announced the expansion of its Nabisco Arabia biscuit plant in Saudi Arabia to double production capacity. In China, the company plans to introduce new products, step up marketing and widen its distribution channels.
We currently estimate a $40 price for Kraft Foods, which is slightly above the current market price.
The Nabisco Arabia plant, which produces Oreo cookies, Ritz crackers and Belvita biscuits, is a joint venture between Kraft Foods and Saudi Arabia's Olayan Group and has been operational for more than a decade. Following the expansion, the plant has a capital investment of around SR60 million or $16 million.
Oreo cookies continue to lure customers around the world. The global revenue of the product exceeded $2 billion for the first time a couple of weeks ago.
Earlier in the year, Kraft launched Barni in the Middle East to target children's snack segment.
Focus on China
Kraft is molding its portfolio to introduce products/flavors that are more likely to appeal to Chinese tastes.
The company recently launched birthday-cake flavored Oreos. This is not the first time that Kraft has experimented with cookies to appeal to local tastes. Already present in the country are flavors like green tea, ice cream, mango and mandarin orange. The company will soon launch Ritz in new flavors named 'fantastic beef stew' and ‘very spicy chicken'. Even the packaging of Ritz crackers and Chips Ahoy cookies will be redesigned to resemble ramen-noodle containers.
Currently, Kraft doesn't even feature in the list of top 10 snacks companies in China, which are mainly dominated by Chinese companies.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Stocks sag as the Fed chairman says a stronger economy may let the central bank start to end its bond-buying program late this year. But Bernanke sees low rates lasting into 2015.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.