US: Kraft Foods quarterly profit falls 16 percent | Progresiv
Kraft Foods Group Inc, which is merging with ketchup maker H.J. Heinz Co, reported profit that topped analyst estimates, driven by reduced advertising spending and overhead. 
But the company missed revenue expectations amid sluggish demand for its meals and desserts. Kraft is struggling to grow as consumers shift to brands that are perceived as healthier, including foods that are organic or less processed.
Kraft's net income fell 16 percent to 429 million dollars in the first quarter ended March 28, from 513 million dollars a year earlier. Revenue fell slightly to 4.35 billion dollars.
Heinz, backed by Warren Buffett's Berkshire Hathaway Inc and Brazilian private equity firm 3G Capital, will combine with Kraft to create the third-largest North American food company, the companies said in late March.
Both companies said at the time that the deal, which is expected to close in the second half of 2015, would provide an opportunity to expand Kraft's brands overseas. Kraft says its brands are currently in 98 percent of North American households.
In the first quarter, the company said its cheese business, which rose 1.3 percent, benefited from price hikes in the past year and changes the company made to its Philadelphia brand soft cream cheese.
Meanwhile, beverage sales were up 4.2 percent, helped by the launch of McCafe branded coffee that Kraft is selling in partnership with McDonald's Corp. (www.reuters.com)
