FDBusiness.com

Kraft Foods has combined two of its biggest brands to launch a new product in its range –Philadelphia with Cadbury combination, a fresh tasting, light textured chocolate spread which has half the fat and less sugar than other chocolate spreads. Philadelphia with Cadbury is designed to offer Philadelphia new growth opportunities outside its traditional cheese spread category. The move builds on Philadelphia successfully expanding its use from a simple cheese spread to a cooking ingredient. Philadelphia with Cadbury will be supported by a £3.2 million marketing campaign in the UK.

The launch of Philadelphia with Cadbury follows the successful introduction of Philadelphia with Milka in other countries. In October 2010,Philadelphia with Milka hit the shelves in Germany, and has grown to become a Eur22.2 million brand (retail sales) establishing a 3.6% value share of the cream cheese market and a 6.6% value share of the chocolate spread market. The cheese and chocolate combination is also due to be launched in Spain, Belgium, Netherlands, Nordics and Luxembourg in 2012.

Philadelphia with Cadbury is Kraft Foods’ biggest cross category innovation since its integration with the Cadbury business, and brings together two of Kraft’s biggest household brands in order to create a completely new tasting snack for consumers.

Kraft Foods has twelve iconic brands – Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Tang and Trident – that each generates revenue of more than $1 billion annually.

Kraft Foods is in the process of dividing its business to create two independent public companies – a high-growth global snacks business and a high-margin North American grocery business. The transaction will take at least 12 months to complete.