Kraft manage "sustainable growth"

26/01/05 Kraft Foods has reported net revenues up 7.0% in the fourth quarter and 5.5% for the full year in 2004. Kraft reported good progress on its “Sustainable Growth Plan”, led by innovative new products, strong revenue growth in North America and cost reduction initiatives. In implementing its Sustainable Growth Plan in 2004, the company significantly increased its marketing investment to improve price gaps and build brand equity. According to the company, positive trends in sequential revenue, market share and product mix show that the investment is working. The company transformed its portfolio by investing in growth businesses and technologies, such as Fruit20 flavored waters, DiGiorno Microwave Rising Crust Pizza, Back to Nature natural and organic products and the Tassimo hot beverage system. At the same time, Kraft signed agreements to divest certain businesses to improve management focus, while investing in the infrastructure needed to improve its growth prospects in developing markets such as Russia, China and Brazil. "Kraft enters 2005 with improved momentum, fueled by strong revenue growth in the fourth quarter," said Roger K. Deromedi, CEO of Kraft Foods. "We were particularly encouraged by the strong performance of our North American business, which grew fourth quarter revenues by more than 8%. In a transition year in which we reorganized the company and began a significant restructuring program, we sequentially improved our top-line growth each quarter and are now in a better position to deliver sustainable growth going forward."