Kraft Company

Sometimes in order to make money you have to think long term. Putting your money somewhere where it has the chance to grow. Someplace such as a publicly traded company. In order to find a quality company to invest in, sometimes you have to do a little research. I have done that research and decided upon Kraft Food Company. Kraft Food Company has done well over the past ten years, with their stock shares selling at about 32 dollars a share as of October 21, 2010.

When looking at the financial 3 year review of Kraft Food Company, the company has done well in the past and looks to be headed in a positive direction. Investing in Kraft would involve some careful planning. You will have to make the choice of how much you are willing to invest in this company. The more you invest the higher your potential return rate could be. However, when dealing with publicly traded stock there is always the risk involved. With a company like Kraft Foods you are taking less of a risk. Kraft is a very resilient company in that it is able to bounce back from company fails.

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In 2002 the company began to decline not only from intensified competition from lower prices, but also because Kraft began misfiring on the new product front. Kraft was also slow to react to the rising demand for less fattening, more healthful food and had missed out on several quickly growing divisions of the food industry, such as cereal bars and organic products. The popularity of the low-carbohydrate Atkins diet also contributed to the decline. The purchase of Nabisco and its lineup of mainly high-fat snack food items was not timed will due to the fact of these trends.

They launched a major three-year restriction in early 2004 that implicated closing 20 plants and shaving 6,000 jobs off the overall workforce. This program was expanded in January 2006 to include the shutdown of 20 more plants and 8,000 further job cuts. However, Kraft began reducing the portion sizes of some of its products, and launched 100-calorie snack packs of several Nabisco products, including Chips Ahoy! and Wheat Thins. Kraft is a flexible company and is always catering to its consumers needs.

When there is a new trend or new taste out there you can count on Kraft to have it on the shelf with their logo on the package. Therefore you can feel comfortable in knowing that Kraft Food Company will be one of the top companies for the next ten to twenty years, making for a smart investment for you.

Works Cited

“Kraft Foods: Information from Answers. com. ” Answers. com: Wiki Q&A Combined with Free Online Dictionary, Thesaurus, and Encyclopedias. Web. 22 Oct. 2010. . “Kraft Foods – Investor Center – Stock Performance. ” Web. 22 Oct. 2010. .

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