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China choc market targeted by Kraft

20 September 2010

Two years is the target US food company Kraft Foods has given itself to double the number of Chinese cities in which Cadbury products are sold (it currently sells in about 20)

The announcement will hardly come as a surprise to those who know that revenue at Kraft China has quadrupled in the past four years.

According to CityAM the company says it will achieve its goal by using its vast distribution network. And Lorna Davis, president and chairman of Kraft's business in China, has told Reuters the company would use its current distribution network in the country to build Cadbury's presence.

"China has been doubling every year, and the real challenge is to pick the right opportunities," she is reported as saying. "If I had unlimited resources and unlimited people, I’d bring in everything Kraft has but right now the focus is really on integrating Cadbury and growing our line of biscuits.’’

Cadbury was a British confectionery company, the industry's second-largest globally after the combined Mars-Wrigley, until it was acquired by Kraft Foods in February 2010. It was said the reason for buying Cadbury was because it would broaden access to faster-growing international markets.

Davis has signalled that Kraft is also interested in China’s breakfast market where it hopes to replace noodles, rice congee and meat buns with cakes and pop tarts. ‘’There’s a hole in the breakfast market and we’re moving to fill it. The problem is Chinese supermarkets traditionally haven’t had a breakfast section and you don’t want to put it in the cereal section where traffic is low. So there’s a bit of trial and error right now.’’


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