January 30, 2006

People are eating better -- just ask Kraft

Kraft Foods -- the largest U.S. food manufacturer and the maker of Kraft cheese, Nabisco crackers, Oscar Mayer meats and Post cereals -- announced today that it would eliminate 8,000 jobs, or about 8% of its work force, and close up to 20 production plants as it broadens an ongoing restructuring effort.

This restructuring comes less than 2 years after their most recent shake-up when in 2004 there had just been a re-jigging of top management that followed more than a year of disappointing sales and earnings. At the time, Kraft executives blamed the poor results on "American consumers' increased health concerns, which had put the entire packaged food industry under severe pressure to change quickly."

Yes, obesity and other food issues are a problem in N. America, but I have to think that people are starting to get the message about healthy eating and the importance of avoiding processed foods.

Tags: .

No comments: