May 1, 2008
Unlike its iconic American counterpart, the Oreo sold in China is frequently long, thin, four-layered and coated in chocolate. But both kinds of cookies have one important thing in common: They are now best sellers.
The Oreo has long been the top-selling cookie in the U.S. market. But Kraft Foods Inc. had to reinvent the Oreo to make it sell well in the world's most populous nation. While Chinese Oreo sales represent a tiny fraction of Kraft's $37.2 billion in annual revenue, the cookie's journey in China exemplifies the kind of entrepreneurial transformation that Chief Executive Irene Rosenfeld is trying to spread throughout the food giant.
Kraft, the world's second largest food company by revenue, reported a 13% drop in first-quarter net income Wednesday because of high commodity costs and increased spending on product research and marketing. Its international business, which now represents 40% of Kraft's revenue thanks to the company's recent acquisition of Groupe Danone's biscuits business, was a bright spot in the quarter, aided by the weak dollar. Kraft's profit in the European Union rose 48%, excluding special charges, and its profit in developing markets rose 57%.
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http://online.wsj.com/public/article/SB120958152962857053.html?mod=dist_smartbrief
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