PARDON ME, SIR – do you have any growing brands?

060818_kraft_hmed_9a_hmedium1.jpg    Shocking the CPG world last week, Kraft announced in its Q2 results that at least half of its brands in its $34 billion portfolio aren’t growing share.   Guess there’s only so much Mac and Cheese, Oreos, and DiGiorno Pizzas the world can handle.  So this leaves a great question – what should Kraft do?  It appears there are two not-so easy answers:  sell off parts of the business, or invest in expanding the brands in other categories.  My gut is that some of both will probably happen as Kraft needs to ask some hard questions about all of its brands.  Does it make sense to keep all current brands, or do some fall outside of Kraft’s core offerings?    Kraft may have to go through the exercise of trimming some fat (pun intended) and refocusing its efforts on fewer brands.  If not, the company could be having the same conversation a year from now.

Leave a Comment