Creatinga moredeliciousworldOur 2010 repOrt
Message from Our Chairman and                                                                                             ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
from Our Partners                                                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                         ...
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
Kraftfoods. Creating a more delicious world
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Kraftfoods. Creating a more delicious world

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Kraftfoods. Creating a more delicious world

  1. 1. Creatinga moredeliciousworldOur 2010 repOrt
  2. 2. Message from Our Chairman and a 2 bChief Executive Officer Ever since my first “job” selling as a global food company, we can help raise people up—out of hunger, out of poverty, toward girl scout cookies, i believed healthier lifestyles—through what we make and that business could be a force how we make it. Millions of times a day … in ways big and small … quite literally around the world, for good. today, i know it is. we’re doing just that. and we do it at multiple points in our supply chain … from our agriculture Business is a vital part of the success of most sourcing initiatives that have made us a leading nations. from Chile to China. the united states purchaser of sustainable cocoa, coffee and to ukraine. Well-run businesses contribute to cashews to our finished products, like Biskuat society in so many ways: Providing jobs, creating and Tiger fortified biscuits that help indonesian robust supply chains, revitalizing communities, moms ensure their kids get the right vitamins innovating solutions for some of the world’s and minerals to grow to their full potential. toughest challenges, contributing to public coffers and delivering shareholder returns that “Creating a more delicious world” is a loftyirene B. rosenfeld enable further investment. But companies that goal to be sure. But we make it achievable byChairman and can successfully and simultaneously balance taking a pragmatic approach. first, we focusChief Executive Officer the short- and long-term interests of the our efforts where we can make the greatest multiple constituents they serve can do the difference. Our global priorities are food safety, most good. they can, indeed, change the health and well-being, and sustainability. next, world for the better. we agree on the goals, strategies and actions to achieve each priority. that’s one of the reasons i’m so proud to be leading Kraft foods, where we say that Our goals, whether financial or philanthropic, “delicious is our difference.” Yes, our products are designed to be ambitious, but achievable. taste delicious. But to us, it’s more than that. Our strategies are long term, spanning delicious is also our corporate purpose … the decades in some cases. But the targets we mindset and spirit we apply to everything we set to evaluate our progress are measured in do and how we do it. it’s also why we titled increments of five years or less. that way, the this report, “Creating a more delicious world.” same people who set the targets can also beMEssagE frOM Our ChairMan and ChiEf ExECutivE OffiCEr Index
  3. 3. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 3 b held accountable for delivering them. finally, We’re not perfect, and we’re not finished. But our actions focus on what we call the “three Ps” by focusing on what matters most and where for creating lasting change: Products, Policies we can make the biggest difference, i am and Partnerships. all three are important, but confident we’re on the right path. We’re working i want to elaborate a bit on Partnerships. Even to support healthier lifestyles and sustainable though there is a lot we can do as the world’s agriculture. seeking solutions that, by design, second-largest food company, many of the benefit our business and our society. Working issues we’re tackling are so big that we can for outcomes that are sustainable and scalable. only achieve lasting change when we work and sharing our progress and setbacks along with others. so together with our suppliers, the way. We can’t do everything, but we are customers and consumers … with governments, doing a great deal. We’re proud of what we’ve multilateral organizations and nongovernmental accomplished and how it is helping consumers organizations (ngOs) … we look for innovative and communities around the world live more ways to combine our inherent strengths and deliciously every day. capabilities to achieve the kinds of significantirene rosenfeld helps build change we all want—for ourselves, for oura playground in Chicago’sWashington Park, one of children and for generations to come.13 playgrounds built as part ofour partnership with KaBOOM! in the following pages, i encourage you toduring delicious difference take a look at what we’re doing and what we’veWeek in 2010. during this accomplished, on our own and in partnershipweek, nearly 25,000 employees with others around the world. this report covers irene B. rosenfeldin 56 countries engaged incommunity activities to help both the legacy Kraft foods and Cadbury Chairman and Chief Executive Officerfight hunger and promote businesses and summarizes our 2010 progress Kraft foods inc.healthy lifestyles. in the areas of highest societal interest. May 2011MEssagE frOM Our ChairMan and ChiEf ExECutivE OffiCEr Index
  4. 4. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 4 btable of ContentsDelicious @ Work Highlights .........................................................................................................................5From Our Partners ..................................................................................................................................................6Health and Well-Being: Eat delicious, live well .............................................................................8Sustainability: Now and for future generations........................................................................ 20Food Safety and Quality: Better practices deliver the best results........................ 36Workplace and Culture: Becoming performance-driven, values-led ..................40Governance and Compliance: Inspiring trust.............................................................................. 46taBlE Of COntEnts Index
  5. 5. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 5 bdelicious @ Work highlightssince 1999 in the u.s. during the last five years, in 2010, we reduced sodium in 2010, women madealone, we’ve helped we’ve improved the nutrition in 340 north american up 35% of managementprovide more than profile of more than products—removing nearly worldwide.1 billion servings 5,500 products 3 million kilograms 43% of ourof food (6.5 million pounds) salaried employees of salt were womentoday, we’re helping to since 2005, we’ve significantly increased our purchases of We’ve cutimprove the livelihoodsof more than certified coffee and cocoa (measured in metric tons) Kraft Foods certified coffee and cocoa bean buying p 97 million1 million farmersthrough partnerships Rainforest Alliance Certified™ coffee 50,000 kilometers* Fairtrade sugar 24,000 (60 million miles) from ourthat support sustainable Fairtrade cocoa 19,000 Rainforest Alliance 11,000 global transportation networkagriculture Certified™ cocoa 2005 2006 2007 2008 2009 2010We’ve cut greenhouse gas emissions We’ve reduced We’ve reduced water We’ve cut our packagingand energy use by our waste by consumption by by nearlyp 18% p 16% p 42% * * * p 30% * p 100,000  greenhouse energy metric tons* gases use (200 million pounds)*data normalized to production with a 2005 baseline.dEliCiOus @ WOrK highlights Index
  6. 6. from Our Partners a 6 b “InMed Partnerships for Children is proud to work with the Kraft Foods Foundation toward our shared goals to fight hunger and malnutrition, and to help youth put health into action. Together, we are creating hope and opportunity for the next generation, providing more than 100,000 of Brazil’s most vulnerable youth with the foundation of knowledge and good health they need to transform their futures.” Linda pfeiffer, Ph.d., President and CEO, inMEd Partnerships for Children “As the numbers of hungry increase, we need private companies like Kraft Foods to join us in the fight against hunger. It’s a fight too big for any one player, but together we can find new ways to dramatically reduce malnutrition.” Josette Sheeran, Executive director, “Kraft Foods Foundation is helping to make World food Programme nutritious food available in schools and communities to combat the high rates of malnutrition in young children. Families are also learning the skills they need to make healthy choices to improve the nutritional status of their children. The Foundation’s impact will be felt for generations.” Charles MacCormack, President and CEO, save the ChildrenfrOM Our PartnErs Index
  7. 7. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 7 b “We are all responsible “CARe is pleased to be working alongside Kraft Foods to improve for ensuring the long- the lives of people living in poor communities. Through savings, term health of our education, entrepreneurship and innovative technologies, thousands planet. As the leading of cocoa farmers are benefiting from more sustainable cocoa purchaser of coffee and farming systems. Together, we are making a real difference in the cocoa from rainforest lives of many rural families around the globe.” Alliance Certified™ Helene D. Gayle, Md, MPh, President and CEO, CarE farms, Kraft Foods is doing its part by helping farmers earn a good living as they conserve wildlife habitats and the vital natural resources on which we all depend.” tensie Whelan, President, the rainforest alliance “Soon, 9 billion people will seek to improve their lives in the context of a single planet. And every business in every industry will be forced to grapple with finding ways to meet their needs while using less water, carbon and land. We work with companies like Kraft Foods that are willing and able to influence the future of the planet by working to positively advance the way agricultural commodities are produced, bought and sold.” Carter roberts, President and CEO, World Wildlife fund, u.s. “Kraft Foods’ commitment to Fairtrade is helping to build a better future for many thousands of cocoa farmers, their families and their communities. Through this commitment, farmers can enjoy more secure, sustainable livelihoods. We look forward to building on this partnership to create a better future for even more farmers.” rob Cameron, Chief Executive, fairtrade labelling Organizations (flO) internationalfrOM Our PartnErs Index
  8. 8. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 8 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceHeALtH AnD WeLL-BeinG: today, the world faces the paradoxical challenge of addressing both hunger andEat dEliCiOus, obesity. according to the World Health Organization, one in six people in the world doesn’t get enough to eat. at the same time,livE WEll one in five is overweight or obese. tackling such complex challenges requires a collaborative approach involving consumers, companies, governments and civil society. so we take a three-pronged approach, combining our products, policies and partnerships, so our cumulative efforts can help make a real difference.Our focus is to make our brands—foods consumers love—nutritionallybetter and more wholesome, withoutcompromising taste.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  9. 9. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 9 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS Products: Making the foods since 2005, we’ve reformulated or launched people love even better more than 5,500 products that meet one or more of these focus areas. Our goal is around the world, people eat and drink about to continually grow the number of options 900 million servings of Kraft foods products in our portfolio that give consumers better every day. that gives us an enormous choices for healthier and more wholesome opportunity to have a positive impact on foods. it’s good for consumers and it’s good consumers’ health and well-being. so our focus for business. is on making our products more nutritious and more wholesome, while still delivering the same ReMOVInG OR RedUCInG nUTRIenTS delICIOUS @ WORK delicious taste people have come to expect. COnSUMeRS WAnT leSS OF Some of our 5,500 better Based on what our consumers tell us they SOdIUM Much of the world’s population is choices worldwide: want, we focus our efforts on three areas: consuming too much sodium. While sodium Brazil: Mini Philadelphia cream reduction isn’t new for Kraft foods, in 2010 cheese with 40 percent less sodium • foods with less fat, sodium, sugar we began to accelerate our efforts to further than the local Requeijão cheese. and calories. reduce it in our products, without compromising iberia: Fruit & Fit biscuits, made with taste or safety. this is a tough challenge for 30 percent fruit and just 49 calories • foods with more beneficial ingredients, such as whole grains, fiber, healthier the entire food industry, but we feel good per biscuit. oils and micronutrients. about our progress: philippines: Tang Fruitrition, a powdered beverage mix fortified • foods that are “simpler:” easier-to- • in the u.s. and Canada, our largest and with a combination of vitamins and understand ingredient lines and fewer most diverse portfolios, we announced plans minerals found in fruit juices and artificial ingredients. needed by the population. to cut sodium by an average of 10 percent by 2012 across the portfolio. in 2010 alone, for more examples, see our we removed nearly 3 million kilograms Health & Wellness Fact Sheet. (6.5 million pounds) of salt from 340 products. and we plan to reduce sodium in hundreds more products.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  10. 10. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 10 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS • in latin america this year, we initiated plans • in Europe, since 2008, we reduced saturated to reduce sodium by an average of fat by 54 percent in our Prince biscuits. 5 percent—equal to 227,000 kilograms We’re also eliminating partially hydrogenated (0.5 million pounds) of salt—across our vegetable oils from our biscuits and exploring biscuit and cheese lines by the end of 2012. ways to reduce or limit these oils in other products worldwide. • in Europe, we continued our sodium reduction efforts with our Dairylea cheese • in australia, we launched Philadelphia lines, where we’ve reduced sodium by cooking cream, a dairy-based cooking 30 percent since 2002. product that has 60 percent less fat than regular cooking cream. SATURATed And TRAnS FATS heart disease is one of the leading causes of death worldwide. research has shown that reducing saturated fats and trans fats may help to improve heart health. and we know our consumers look at the fat content of products when trying to make healthier choices. that’s why over the years, we’ve been removing saturated and trans fats. • in the u.s., we reformulated our 2 percent cheeses so that they taste just as good as full-fat cheese, and we launched our fat-free Tassimo skinny Cappuccino.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  11. 11. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 11 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS SUGAR Consumers are also seeking products in Europe, we offer our Belvita biscuits in with less sugar, and health officials are 100 calorie packs and our Prince biscuits encouraging people to eat less as well. so, now contain less than 100 calories per serving. we’ve taken action: We also sell Cadbury Highlights, a low-calorie drinking chocolate, with only 40 calories and • in the u.s., we reduced the sugar in our less than 1 percent fat per serving. throughout Capri Sun juice drinks. We also introduced the u.s. and Canada, we have a wide variety of sugar-free Jell-O Mousse cups. biscuits and cheeses in 100 calorie packages. • in latin america, we reduced the sugar Kraft foods is a founding member of the in our Tang powdered beverages and we Healthy Weight Commitment Foundation— introduced several sugar-free products, a multiyear effort launched in 2009 to help including Clight powdered beverages. reduce obesity in the u.s., especially among • in Europe, we reduced the sugar in children. as part of that commitment, we delICIOUS @ WORK our Belvita biscuits by about 8 percent continue to develop and introduce lower calorie during the last four years. options of many of our brands. We’ve changed these are just some of the Kraft recipes where possible to lower the calorie foods brands where we’ve either • and globally, we offer sugar-free versions lowered the sugar content or offer content or reduced portion sizes of existing of Halls throat lozenges and Trident gums. a sugar-free option. single-serve products. in 2010, the foundation members pledged to reduce 1.5 trillion calories CAlORIeS today, many consumers are in their portfolios by the end of 2015, using looking for foods that are either lower in 2008 as the baseline. calories or come in portion sizes that can help them control their caloric intake. to meet this need, we offer a range of calorie- and/or AddInG InGRedIenTS COnSUMeRS WAnT portion-controlled options. We’re not just removing ingredients consumers don’t want; we’re also adding more of what they do want.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  12. 12. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 12 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS WHOle GRAInS Most consumers don’t get eSSenTIAl VITAMInS And MIneRAlS to help enough whole grains. so we’re finding new address malnutrition in developing markets, we ways to increase the whole grain content of offer foods fortified with micronutrients. We our products. Our researchers have developed don’t simply add the nutrients people need. a proprietary technology that enables us to We invest in technology that helps ensure use the whole germ of the grain. When we that the nutrients we use can effectively and add whole grains to our products, we’re now efficiently be absorbed by the body. and we able to provide consumers with much more price these products affordably so they are well of what they want and need, while maintaining within reach for millions of consumers with the taste they love. limited disposable income. Examples include: delICIOUS @ WORK • in the u.s., in 2010, we announced that we • Tiger and Biskuat biscuits, sold in indonesia, would double the amount of whole grains in are fortified with nine vitamins and six here are some examples where we’ve increased whole grain our Nabisco cracker brands by 2013. When minerals. developed in collaboration with the content in our European biscuits. we’re done, Nabisco crackers will account World Food Programme and The Indonesian for 9 billion servings of whole grains in the Association of nutritionists, our biscuits american diet each year. supplement the daily nutritional requirements of a growing child, at an average cost of 100 • in latin america, we added whole grains to to 500 rupiah (between one and six cents our popular Trakinas, Belvita, Ceralitas and u.s.) per pack. Club Social biscuits. • globally, we fortify our Tang powdered • in the Eu, we increased the number of our beverage drink with vitamin C and add other biscuit and crisp bread products that contain key nutrients specific to a country’s needs— whole grains by 50 percent. such as iron in southeast asia, vitamin B-12 • and, in China, we launched the country’s and folic acid in China, iodine in the Middle first whole grain biscuit, which provides East, and vitamins a and E in argentina 10 percent of the recommended daily and uruguay. amount of fiber in one serving.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  13. 13. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 13 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS Our affordable nutrition products have small remove and prevent the formation of stains when price tags, but they are big business for us. used as part of a normal teeth-cleaning routine. that’s why we chose to invest in expanded capacity. that way, we can bring more Policies: leading in ways consumers more of the essential vitamins and minerals they need at prices they can afford. that make a difference nutrition awareness and education are critical to HeAlTHy SMIleS People chew gum for a helping consumers make better choices about variety of reasons—to help relieve stress, to their health and well-being. Our marketing and improve dental health and freshen breath, or communication policies are designed to ensure to relax and enjoy a refreshing break. research that consumers have clear nutrition information delICIOUS @ WORK has shown there are many oral health benefits about our products. from chewing gum … especially if it’s sugar- few low-income families in Brazil have access to oral care. so by free … and the American dental Association AdVeRTISInG TO CHIldRen how we market the time they are lucky enough and World dental Federation agree. Just the our products matters. that’s why we take great to see a dentist, their conditions physical action of chewing gum for at least care to market and advertise responsibly— are often extreme. 20 minutes after eating stimulates saliva flow, especially to children. in 2005, we became that’s where dentista do Bem helping to prevent cavities by reducing plaque the first company to announce global policies (dentist for good) comes in. acids and strengthening teeth. for advertising to children*, with three main sponsored by Trident chewing focus areas: gum since 2006, dentista do today, more than 70 percent of our gum Bem provides free dental services, worldwide is sugar-free. in addition, our Trident • We don’t advertise to children under including reconstruction and Xtra Care and Trident Total sugar-free gums, age 6 (long-standing policy). preventive treatment, to underprivileged children— available in several countries, contain the • for children ages 6 through 11, we only until they reach the age of 18. proprietary ingredient recaldent. research has advertise those products that meet shown that chewing a recaldent-containing in 2010, 15,000 children received specific nutrition criteria. free dental care—and now are gum—versus a regular sugar-free gum—helps proudly showing their smiles. strengthen teeth by actively promoting tooth • We don’t advertise in primary or re-mineralization and protecting against tooth secondary schools. decay. People want healthy teeth and they want them to look good, too. Our sugar-free Trident White gum has been clinically shown to help * in late 2010, the legacy Cadbury business began implementing these provisions and will be in full compliance by January 2012.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  14. 14. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 14 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and compliance prODuCtS pOLiCieS pArtnerSHipS Our practices have become the model for how Our labels list the amount of each nutrient and what many other companies advertise to in a given portion of the product and/or per children. We were a founding member of the 100 grams or milliliters, depending on local“Market International Food & Beverage Alliance, and, along with other members, made a global regulations. in most cases, our labels also include the percentage that each nutrient responsibly.” commitment to the World health Organization to advertise only products that meet specific provides of the recommended daily value (dv), daily intake (di) or guideline daily amounts nutrition criteria to children under age 12 and to (GdAs)—or the local equivalent where available. Kraft foods Code of Conduct, rule 2 monitor our efforts. We’ve made similar pledges in australia, Brazil, Canada, india, Mexico, We’re also pursuing front-of-pack labeling that russia, south africa, turkey, u.s. and all Eu delivers meaningful information at a glance, and countries. implementing pledges at the national are increasing our front-of-pack labeling around level encourages local companies to follow our the world. in australia and the Eu, we provide lead and to improve the types of products they front-of-pack information on calories, based on advertise to children as well. the percentage of di and percentage of gda, respectively. in the u.s., we support nutrition PROdUCT lABelInG since 2007, we’ve Keys a front-of-pack program, developed by the provided nutrition labeling on products Grocery Manufacturers Association and Food worldwide. Marketing Institute. and in asia Pacific, we are currently exploring front-of-pack options with following the recommendations of the Codex the broader food industry. Alimentarius, a set of globally recognized, widely used food standards, our labels provide information on calories plus seven key nutrients where space permits: protein, carbohydrates, sugar, fat, saturated fat, fiber and sodium. On very small packages and others with limited space, we list calories, protein, carbohydrates and total fat, per Codex recommendations.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  15. 15. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 15 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS We also provide nutrition information online Partnerships: Together and via toll-free consumer call centers. Our we can make it happen healthy living websites in several countries offer lifestyle tips and recipes. and in the u.s., it takes all sectors of society to successfully our Good eating, Good living website provides fight global hunger, obesity and the underlying information for people living with diabetes. causes of malnutrition. so, in communities We also provide this information in spanish throughout the world, we’re working with at our comidakraft.com website. nongovernmental organizations (ngOs) delICIOUS @ WORK that demonstrate they know how to make Whether it’s a hard-to-reach rural as we develop and assess our policies, we a real difference. area or an urban neighborhood engage with other organizations. for example, without a grocery store, the Kraft  we have participated in consultations with the Our partnerships are built on a long history. foods Mobile Pantry program is and in 2009, Kraft foods and its foundation World health Organization on the subjects of making a difference for families sodium intake and advertising to children. in renewed their commitment, providing living in the u.s. “food deserts.” Brazil, we’ve facilitated conversations among $180 million of cash and food over three years in 2009, our company and our technology and nutrition teams and to leading community organizations that help foundation pledged $4.5 million meet immediate needs and create long-term leading nutritionists and health professionals over three years to feeding america. the mobile pantry program is on local nutritional needs. in Europe, our change. these partners work to give families a bringing more food—and better biscuit research and development teams take “hand up” rather than a “handout” by providing nutrition—to children and families part in global forums on whole grains with key the nutrition education and economic who need it most. nutrition and public health leaders, including empowerment to create lasting change. the fleet of 25 mobile pantry trucks the european nutrition Congress and brings fresh produce, protein and HeAlTHGRAIn Forum. Whether it’s helping farmers grow and sell dairy products into communities their cocoa crops or teaching families the where access to food is challenging. and our own Worldwide Health & Wellness fundamentals of good nutrition, together they’ll deliver 50 million meals over with our partners, we are providing the Advisory Council informs our work and helps three years. guide our efforts in providing consumers with necessary tools that empower communities www.feedingamerica.org more choices to meet their needs in health to successfully combat hunger and related and well-being. health issues themselves.hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  16. 16. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 16 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and compliance prODuCtS pOLiCieS pArtnerSHipS PARTneRSHIPS On THe FROnTlIneS OF • empowering local food entrepreneurs— FIGHTInG HUnGeR And MAlnUTRITIOn We know that when women earn income, 90 percent of it gets reinvested into families.“ If women in rural areas had indonesia and Bangladesh rank fifth and sixth, so to help break the cycle of poverty, we’re respectively, for the highest rates of chronic helping women operate mobile retail stores the same access to land, child malnutrition. so in 2010, our company technology, financial services, (bikes or carts) that sell nutritious foods, and foundation entered a five-year public- soap and agricultural supplies. this helps the education and markets as private partnership with the World food women make a living while bringing needed men, agricultural production Programme to tackle the root causes of products and supplies to their communities. could be increased and the malnutrition. Called Project laser Beam, our part of the program has three components: • encouraging lifelong healthy habits— number of hungry people in addition to working with farmers reduced by 100–150 million.” and entrepreneurs, we’re also training • Supporting local farming—given that The State of Food and Agriculture, nearly 75 percent of families facing hunger community leaders to deliver nutrition 2010–2011 live in rural areas, often the most immediate education at schools and other places solution is to support local agriculture. to where families gather. www.fao.org that end, Project laser Beam is helping to establish women-operated rural farms that grow vegetables and raise livestock. By giving women access to seeds, fertilizers and credit, we equip them to provide food for their families and offer a chance for long-term income. hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  17. 17. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 17 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS Our foundation has been working with Save in China, since 2009, we’ve built 100 the Children since 2009 to help malnourished “Kraft Hope Kitchens” in five rural Chinese families in southeast asia. today, they’re provinces in partnership with the China youth working in indonesia and the Philippines to development Foundation. When we launched tackle malnutrition by teaching healthy eating the program, surveys showed nearly 70 percent and hygiene habits. of students at these schools felt hungry during the day and more than 30 percent sometimes • indonesia: With the help of save the couldn’t get enough to eat. the kitchens Children, the foundation is working through provide children hot, safely prepared foods. they a unique system of female volunteers who provide teachers, parents and staff with new consider it a privilege to help other mothers skills for nutritious cooking and safe food and kids in their communities. Children and handling. By the end of 2010, we had helped delICIOUS @ WORK their moms are learning nutrition practices thousands of children get hot, nutritious meals. and taking those lessons home so the whole More than that, we are giving them—and their When amy abing came to save the family eats better. and it’s working. the villages—a start toward long-term health. Children’s gardening training in the Philippines, she seemed discouraged government is expanding the program. and malnourished. a single mother • philippines: Our foundation is also working with a kidney ailment, she earns $8 a month. timidly, she said there to help mothers set up and maintain urban were miserable days when she and vegetable gardens. With very limited space, her two children missed meals. they use recycled plastic containers to grow local crops, such as pechay, kangkong and at the class, sponsored by the Kraft foods foundation, amy learned labanos. this program won the 2010 asian how to plant and maintain an urban Corporate social responsibility award. garden. from her small plot, she now feeds her two daughters and even has a little left over to sell to neighbors. “nowadays, my children and i eat cooked rice with boiled vegetables dipped in vinegar with salt and sliced onions,” she boasts. www.savethechildren.orghEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  18. 18. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 18 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and compliance prODuCtS pOLiCieS pArtnerSHipS PARTneRSHIPS PROMOTInG • u.S.: Our foundation works with The HeAlTHy lIFeSTyleS national latino Children’s Institute (nlCI) and the yMCA of the USA (y-USA) to“ 38 percent of Hispanic kids Just as we’re working with others to fight address the obesity epidemic among latino hunger, we’re also partnering to help families children in the u.s. in 2002, we partnered ages 2 to 19 are overweight get healthy. or obese, compared with with nlCi on a program called Salsa, Sabor y Salud (“food, fun and fitness”). Created by 32 percent of other kids the • u.S.: Millions of americans live in “food latinos for latinos, this program engages same age.” deserts,” and many families must travel whole families to eat healthier food and long distances to reach stores that sell increase their physical activity. now our Journal of the American Medical fresh produce and other foods necessary to Association, 2010 foundation is working with the Y-usa to maintain a healthy diet. The Food Trust is our expand Salsa, Sabor y Salud into 130 www.ama-assn.org foundation’s partner to increase access to communities nationwide. fresh foods at local supermarkets, with the aim of ultimately reducing the prevalence of • uK and russia: Childhood obesity is on obesity and other diet-related issues in the rise in both of these countries. in 2004, underserved communities. the food trust we launched an initiative in the uK with advocates policies that bring new stores education experts called health4schools. offering fresh foods to help build healthier it’s an award-winning program that teaches communities. in 2008, we began working children to grow vegetables, prepare healthy with the food trust in illinois. and we’re now salads and play active games. after the uK expanding to four more states: georgia, launch, we quickly realized that russian kids Massachusetts, Minnesota and texas. could benefit as well. so, our foundation partnered with the Charities Aid Foundation to help families make smarter food choices and become more physically active. health4schools has also enabled several russian schools to upgrade cafeterias and purchase new gym equipment. hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  19. 19. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 19 b hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and complianceprODuCtS pOLiCieS pArtnerSHipS • Brazil: the country’s most prominent charity Working toward the day helped us understand that malnutrition is when everyone can eat pervasive in the favelas (urban slums) and remote rural regions of Brazil. Poor children delicious and live well don’t have enough to eat and often get sick Challenges don’t come much bigger than from parasites in the soil and water. With global hunger and obesity. solving them InMed Partnerships for Children, the Kraft takes collaboration. We’re doing our part by foods foundation introduced a school-based increasing the number of “better choice” health program that teaches children to grow options in our product portfolio to help fresh produce for their schools and the consumers as they strive to eat better; following surrounding community. Moms are starting marketing and communications policies that delICIOUS @ WORK their own gardens and cooking healthier help people make informed choices and meals. and school food workers are learning understand how our foods fit into a balanced at a small school in Brazil, the play is the thing. students producing about food safety and nutritious cooking. the diet; and partnering with others to take action a retelling of Little Red Riding program also supports low-cost, low-tech and get the results that enable lasting change.  Hood cast the Big Bad Wolf as water purification, along with treatment for We’ll continue working to help speed progress a vegetarian who wanted to eat children with intestinal parasites and anemia. toward the day when everyone in the world eats the vegetable garden. delicious and lives well. One boy, normally shy and stunted from malnutrition, joined in like never before. his kinetic enthusiasm galvanized the class as he transformed into a natural leader. “We were caught off guard by how strongly the health in action program with inMEd Partnerships for Children hooked the kids to think about nutrition in a fun way,” observed a member of our visiting team. www.inmed.orghEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index
  20. 20. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 20 b health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and complianceSuStAinABiLity: sustainability is about conducting business in a way that is environmentally, socially andnOW and economically responsible. it’s about living today, while being mindful of tomorrow.fOr futurE the demands being placed on the planet are growing. Experts predict that the world’s population will reach just about 9 billion bygEnEratiOns 2050. and standards of living are expanding in much of the developing world. these developments put incremental strain on the planet. in some areas, experts find that natural resources are being depleted faster than the earth can replenish them. Clean water and arable land are becoming scarce. Clearly, we must think and behave differently. as a food company, Kraft foods is dependent on the earth for the raw materials we use every day to make our products. We are changing the way we do business to become more sustainable. given the size and complexity of the issues,“development that meets the needs of the we’re partnering with others—peer companies, present without compromising the ability of governments, ngOs, farmers, suppliers and future generations to meet their own needs.” consumers—to find innovative, scalable solutions.united nations–sponsored Brundtland Commission reportsustainaBilitY: nOW and fOr futurE gEnEratiOns Index
  21. 21. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 21 b health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and compliance s i m p rove ti nuou me nt Six areas of focus By the end of 2015, using 2010 as our base c on year, we plan to*: sustainability is a strategic business priority for TRANSPORTATION/ AGRICULTURAL Kraft foods. We focus on areas that matter • increase sustainable sourcing** of DISTRIBUTION COMMODITIES most to our business and where we can make agricultural commodities by 25 percent. the biggest impact. Our “sustainability Wheel” represents our focus areas and serves as our • Eliminate 50,000 metric tons (100 million framework for building sustainability into pounds) of packaging material. WASTE design PACKAGING everything we do. We use the wheel to measure • reduce energy use in our manufacturing and reward improvement. Our six areas of focus plants by 15 percent. are: agricultural commodities, packaging, energy, water, waste and transportation/distribution. • reduce energy-related carbon dioxide WATER ENERGY emissions in our manufacturing plants in 2006, we set aggressive five-year goals*. in by 15 percent. 2010, after integrating the Cadbury and lu • reduce water consumption in our businesses and looking to continuously improve manufacturing plants by 15 percent.Sustainability Wheel upon our successes, we expanded our initial• six areas of focus. goals. for our 2011–2015 goals, we’ve added • reduce waste at our manufacturing• design in sustainability upfront. sustainable agriculture and transportation plants by 15 percent.• Continuously improve going forward. to what we’re measuring. • reduce 80.5 million kilometers (50 million miles) from our transportation network. *Measured against total production **“sustainably sourced” defined as third-party certification or verificationsustainaBilitY: nOW and fOr futurE gEnEratiOns Index
  22. 22. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 22 b health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and compliance 004 UndeRSTAndInG OUR IMPACT We also use environmental management 1:2 00 systems in our manufacturing facilities the more we can see and understand the 14 ISO worldwide. in 2010, dnV, a leading global potential impact our actions may have, the registrar for isO, certified that our systems met more effective our efforts can be. to improve the requirements of ISO 14001, the premier upon what we’ve done, we seek third-party international standard for environmental insight, which helps us evaluate our progress management. isO 14001 provides a framework and determine where to improve or adjust. for continuous improvement within our facilities. a key advisor is environmental Resources Cadbury plants, which we acquired in 2010, Management (eRM), an independent global were not included in the current isO 14001 environmental management and technical certification. We are revising our environmental consulting firm. ErM has verified the management systems to provide consistent environmental performance indicators for standards for all our facilities. our manufacturing facilities that we report in the following pages.sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
  23. 23. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 23 b health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and compliance agriCultural COMMOditiEs Our growing role in driving SUSTAInABly GROWn FOR sustainable agriculture OUR COnSUMeRS for Kraft foods, sustainability starts at the farm. Buying certified commodities is a powerful sustainable agriculture promotes the long-term means of promoting sustainable farming, viability of crops, the preservation of fertile supporting farmers and enabling consumers to soil, the economic well-being of farmers and make informed choices. Our goal is to increase farming communities, and the health of sustainable sourcing of agricultural commodities ecosystems. as one of the world’s largest by 25 percent by 2015. purchasers of cocoa, coffee, cashews and other commodities, we can influence the future of We’re working to help bring more products to those crops and the communities that grow market that have sustainably grown ingredients. them. We’re partnering with other companies, in a different way, certification addresses the governments and ngOs around the world to three pillars of sustainability—social, economic increase our support of sustainable farming. and environment—by setting standards farmers must meet and helping them to command a the crops we buy often tell a story of family premium for their crops. the ultimate goals of farming. Whether it’s coffee, cocoa, cashews these standards include decent wages, accessthese Kraft foods brands have productlines that carry fairtrade or rainforest or many of the other crops we buy, a large to health care and education for farmingalliance certification seals. portion of them come from developing communities; reductions in water pollution, countries. and a variety of circumstances, soil erosion and excessive pesticide use; andthe Côte d’Or chocolate business such as political unrest, poor soil conditions, more. smarter farming can lead to healthierreceived the 2010 rainforest alliancesustainable standard-setters award lack of infrastructure and more, contribute to farm communities and better quality crops.for its strong commitment to improve the challenges faced by farmers. that’s whythe environment and support local we have supported farming communities andcommunities. sustainable agriculture programs for years.sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
  24. 24. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 24 b health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and compliance agriCultural in 2010, we continued to be the largest buyer • in ghana, we’ve quadrupled the volume of COMMOditiEs of coffee from Rainforest Alliance Certified cocoa sold under fairtrade terms, resulting farms and the largest buyer of cocoa beans in £2.3 million ($3.7 million) in fairtrade from certified Fairtrade or rainforest alliance social premiums. Communities have used farms. here’s how that support is making the premiums to purchase mobile health a difference: clinics, farm equipment, farm-skills training and more. • in 2010, our purchases of rainforest • in the daloa region of Côte d’ivoire, one of alliance Certified coffee helped support the farm cooperatives we work with used a more than 430,000 workers tending more portion of its premium from selling rainforest than 85,500 hectares (210,000 acres) alliance Certified cocoa to build a small in 12 countries in africa, Central america, delICIOUS @ WORK health-care facility staffed by government- south america and southeast asia. assigned health professionals. for the first Our Canadian confectionery team • We’re helping farmers through the Cocoa time, farmers and their families can find created the Bicycle factory in 2009, to rally Canadians to send much- Partnership, the £45 million ($72 million), local treatment for ailments, such as malaria, needed bicycles to the school kids in 10-year commitment to cocoa farmers in and mothers can deliver their babies close our cocoa-growing communities in the dominican republic, ghana, india and to home. ghana to help increase their access indonesia launched by our Cadbury team to education. in 2008. the program is based on the simple notion that ”small purchases can make a big difference for people in need.” Each universal Product Code from any participating item entered at www.thebicyclefactory.ca turns into a virtual bike part. for every 100 virtual bike parts, one real bike gets sent to ghana. the campaign has delivered more than 9,000 bikes in 120 communities.sustainaBilitY: nOW and fOr futurE gEnEratiOns Index
  25. 25. CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 25 b health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and compliance agriCultural THe POWeR OF WORKInG WITH OTHeRS By joining these gates foundation initiatives, COMMOditiEs we hope to help break the cycle of poverty another way we support sustainable agriculture for 200,000 cocoa farmers and 150,000 is by taking part in industry programs that cashew farmers. and the results are starting delICIOUS @ WORK boost development in commodity-producing to materialize. in 2010, we purchased communities. By collectively working with others, Other examples of partnering: 1,000 metric tons (2.2 million pounds) of we can make a greater impact. cashews that were grown sustainably and • in 2009, we joined the World processed in sub-saharan africa. economic Forum’s initiative called in early 2009, we joined industry, government new Vision for Agriculture. the goal and nongovernmental partners in two Bill & of the initiative is to define ways to CUlTIVATInG A MORe ReSPOnSIBle provide food security for all in an Melinda Gates Foundation initiatives that are environmentally sustainable way investing $90 million over five years to advance AGRICUlTURAl SUPPly CHAIn while generating economic growth. sustainable production of cocoa and cashews Many crops we buy come from areas faced • We are a founding member in West africa. with political issues or traditions that are not in and financial supporter of the line with our sourcing standards. in order for us 4C Association. this coalition of • the World Cocoa Foundation manages the producers, trade, industry and ngOs to source in a way that meets our standards, we first initiative, called the Cocoa livelihoods aims to help farmers lower costs, work with others to address such concerns as: Program, and is providing $40 million in improve quality and efficiency, and gain access to markets and credit. cash and related support to increase the COCOA lABOR ISSUeS Kraft foods is involved incomes of small-scale cocoa farmers in • We’ve also joined the World Cocoa in substantial efforts to address forced labor Cameroon, Côte d’ivoire, ghana, liberia foundation and USAId in creating and the worst forms of child labor in cocoa a program called eCHOeS, which and nigeria. farming. While we don’t own or control any strengthens cocoa-growing communities in Côte d’ivoire and • deutsche Gesellschaft für Technische farms, we have worked since 2001 with ghana by training young people and Zusammenarbeit (GTZ) GmbH manages the governments of the Côte d’ivoire, ghana teachers in vocational agriculture. the second program, the African Cashew and the u.s., and our peer companies, to through EChOEs, we’ve helped Initiative, which is providing about enhance education, support economic train more than 5,200 students and $50 million in cash and other support development and promote responsible more than 7,100 teachers. to train producers in Benin, Burkina faso, labor practices. for more examples, see nourishing Côte d’ivoire, ghana and Mozambique. Our Agricultural Supply Chain.sustainaBilitY: nOW and fOr futurE gEnEratiOns Index

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