Kraft Q4 sales hit as rivals offered cut price cold cuts and Mac & cheese

By Elaine WATSON

- Last updated on GMT

Related tags Revenue

Kraft Q4 sales hit as rivals offered cut price cold cuts
Kraft Foods Group expects to post weaker-than-expected fourth-quarter revenues, in part because it lost market share to rivals as competitors engaged in aggressive discounting on cold cuts and mac & cheese, said CEO Tony Vernon.

Kraft, which was spun off last year from Mondelez International, now expects Q4 2012 net revenue to be 10.7% lower than the prior year.

However, it raised its forecast for full-year 2013 earnings to $2.75 per share, up from $2.60.

Speaking to analysts on a conference call this morning, Vernon said one rival's cut price packaged cold cuts had dented sales of Oscar Mayer’s Lunchables as Kraft chose not to respond.

However, when a competitor come out with a lower price version of its Mac & Cheese, Kraft stepped up its advertising and offered bonus packs, he said.

"These are the choices we make as we roll out this playbook. In hindsight, I regret not responding on cold cuts exactly the way we responded on Mac & Cheese.”

Related topics Manufacturers Prepared Foods

Related news

Show more

Follow us


View more