Kraft Foods Enjoys 2Q Profit Increase

Despite a decrease in revenue, Kraft Foods has managed to post an 11 percent rise in profits for its fiscal second quarter. This result surpassed analyst expectations and has led Kraft Foods to enhance its outlook for the rest of the fiscal year, banking on a recent restructuring effort and the improvement of its products.

According to company CEO Irene Rosenfeld, Kraft’s higher-priced products are still managing to lure shoppers, but that Kraft will now focus on increasing volume and product variety rather than prices. She also credited the company’s three-year turnaround plan with its surprisingly strong performance this quarter.

As part of its cost-cutting efforts, Kraft managed to streamline production and get rid of unprofitable brands. The company will soon unveil further cost-cutting measures that should save Kraft $50 million once they are all put into place. In the future, Kraft hopes to increase its brands’ strength in the market by spending more money on advertisement, especially at a time when ad rates have fallen significantly.

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