Where's Kraft Foods Volume Growth ?

Implications: Kraft Foods has reported some progress in their recent quarterly earnings but the jury is still out on whether they can show sustainable sales and growth.Kraft has underperformed its food company peers over the last few years primarily because they have gotten away from what made them successful: new products and innovation and world class marketing.  If you look at what's been successful in the last few years in CPG food its been competitors & retailers embracing the natural & organic food trend and stronger focus on catering to the alternate channels (Walmart,Target,Warehouse clubs and even drug & convenience stores). Kraft has yet to devise a strategy that taps into these growing segments and growing customers.Until they do any volume growth will only be temporary and will be unsustainable. 

Analysis: Alot of attention has been focused on Kraft divesting some of its non strategic businesses.The real issue is how are they going to generate sales growth in their mature and large divisions like the Cheese & Dairy Group,Beverages and Convenient Meals.The Cheese division has sorely lack new product innovation and impactful marketing.The Beverages group continues to be hurt by the sheer size of the coffee segment and its commodity type category.Convenient meals has struggled primarily because of Oscar Mayer.
New Products and better marketing are required to move sales growth in these large underperforming divisions.