What does innovation mean to Kraft?

From an Oreo cookie just right for dunking to our cheesiest Kraft Macaroni and Cheese, to a cup of Jacobs coffee brewed on a Tassimo machine, people around the world expect our products to be truly delicious.  And we won’t stand for anything less.  So, while we’re laser-focused on reducing costs, we refuse to do so at the expense of quality.  That’s why we continue to invest in quality, brand equity and innovation.

Innovation can take many forms – from tasty new products like our DiGiorno flatbread melts to sustainable packaging, such as our new Kraft salad dressing bottles that use 13 percent less plastic.

An important part of our recipe for success has been our platform-based innovation.  These are ideas, like moist bakery products, that can span a number of brands, a number of geographies and have a multiyear pipeline.  Around the world, we now have more than a dozen successful platforms in market.  These include Oreo Cakesters and Ritz Crackerfuls cheese-filled crackers in the U.S., Biskuat affordable nutrition biscuits in Asia, Lacta chocolate biscuits in Latin America and Petit Dejeuner biscuits in Europe.

Our Growth Diamond guides our innovation, focusing us on four growing consumer trends: 

1. Snacking, such as our Oreo Cakesters that helped us enter the billion dollar snack cake category

2. Quick Meals, like our Oscar Mayer Deli Creations flatbread sandwiches, Kraft Easy Mac cups and “For One” single-serve pizzas

3. Premium, such as our Tassimo hot beverage system, Oscar Mayer Deli Fresh meats and Cote D’Or European chocolates

4. Health and Wellness, such as our portion-controlled 100 Calorie Packs, reduced-calorie Capri Sun beverages, sugar-free Jell-O pudding snacks and Biskuat affordable nutrition biscuits.

Our innovation pipeline is quite full, and I’m thrilled about the delicious products we’ll introduce in the coming years.  Of course, our competitors would love to know about our plans.  So, for now they’ll have to remain a secret.
 

Re-designing the Oreo – adapting to a global market

A company like Kraft Foods cannot simply export U.S. brands around the world and expect to be successful.  We need to make our brands relevant to local consumers while building on the lessons we’ve learned elsewhere in the world.  Over the last few years, we’ve significantly grown our international business using a new “best of global, best of local” approach. 

Oreo in China is a great example of this.  About five years ago, the brand’s sales were flattening and we began to lose share. 

Something had to change.  So we began listening to our Chinese consumers.  Really listening.  We learned that Chinese consumers loved the brand, but found the cookie too sweet and the package sizes too large. 

So, we customized Oreo for the local market.
 
• We changed our recipe to reduce the sweetness in the sandwich cookie. 
• We developed different packaging and price points for distribution in smaller Mom & Pop stores. 
• We innovated based on what consumers told us they liked.  We introduced products like wafer sticks, wafer rolls and soft cakes -- all while delivering the uniquely delicious taste of Oreo, as defined by Chinese consumers. 
• And we developed locally relevant marketing programs to seed and communicate the Oreo twist, lick and dunk ritual.

By better adapting Oreo to local tastes, the brand unlocked explosive growth to become the No. 1 biscuit brand in China.  Today, China is the second largest market for Oreo, behind the United States.