The OREO Crisis

I have frequenlty brought up one of my favorite, it not my most favorite, product that KRAFT owns- none other than that wonderful, delicious OREO cookie. The white cream filling sandwiched between two chocolate cookies is guaranteed to brighten me up on the worst of days. Andddd isn’t there just something about that OREO’s crispy yet soft texture that makes them so irresistible? But wait- their delectable texture is what makes an OREO, in fact, a health hazard! An OREO’s creamy filling is packed with trans fats, also known as partially hydronated vegetable oil, and has proven to be one of the worst nutrients our bodies can consume. This oil is what is used in a lot of snack foods to make their shelf lives last longer, such as margarines and baked products. Unfortunatley, these trans fats have been linked to an array of health problems including obesity and several heart disease.

In 2003 an aggravated lawyer from California, Stephen Joseph, filed suit against KRAFT in hopes of banning OREO sales to children. According to an article in the San Francisco Chronicle, Joseph said his lawsuit is focused on the hidden nature of trans fat and the marketing of it to children. Joseph even has his own website, bantansfats.com, (which I found this humorous cartoon on the left) in which he justifies his lawsuit motives. He explains that marketing unhealthy products to children is wrong simply because most children do not have the knowledge to make intelligent choices about what to eat. Fortunately, the lawsuit was dropped right after Joseph learned that KRAFT was working on ways to reduce trans fat levels in their OREO products. Joseph’s goal on gaining public awareness on the dangers of trans fast was very successful, however created a corporate crisis for KRAFT.

So how did KRAFT handle this trans-fat OREO crisis? Well, obviously they must have done something right if the lawsuit was quickly dropped. KRAFT’s spokesmen on the crisis was, Michael Mudd, (pictured on the right) the Executive Vice President of Global Corporate Affairs. According to a 2003 CNN article Mudd said KRAFT has been working on ways to reduce trans fat in the cookies, such as the reduced fat OREO cookie packages now available for sale. He comments: “We’re very pleased with Mr. Joseph’s decision. We share his concern for public health and we’re doing our part” (CNN.com). A very effective quote by KRAFT- instead of apologizing to the public, KRAFT turned the situation into an opportunity for them. KRAFT announced that they were partaking in a multi-year voluntary trans fat reduction effort in the USA, while of course still retaining that great KRAFT taste. Here’s a 2005 article from AllBusiness.com, in which KRAFT discusses their plan to moderate their advertisements of OREO cookies to children under 12 as part of an effort to encourage better eating habits. KRAFT also added a Trans Fat section under their Nutrition page found on both their corporate and food&family site. The section, titled, “Trans Fat Update” includes the latest news on the dangers of trans fats, definitions, examples of where it can be found and even additional links for the readers to find out more information on it.From a PR perspective, KRAFT handled the OREO crisis very well for various reasons, however I attribute all their success to their effective use of time. According to Joseph's website,bantransfats.com, once the media coverage about the lawsuit began, the very next day KRAFT announced that they were going to reduce/eliminate trans fat in their OREO products, and as a result, the lawsuit was dropped- preventing a long and possibly messy trial from occuring. KRAFT chose a credible spokesperson, the VP of Global Corporate Affairs, to address the public, plus by joining in the effort to eliminate trans fat in the USA, KRAFT was showing that they had real compassion and concern for the public’s health. Not only did they cut commericals that adverstised unhealthy foods aimed at children and provided information on trans fat on their website, but they also provided this release in 2005 about the progress they were making on the trans fat epidemic. Lastly, being a food company, it was important for KRAFT to be honest about the issue. KRAFT admitted to OREO's containing trans fat, agreed with the lawsuit, and effectively solved the situation. Thank goodness OREO's are….still America’s Favorite Cookies.

INVESTOR RELATIONS

KRAFT’S annual report is easily accessed for viewers via their corporate website under “Investor Center”. The left of the screen has a tab with a variety of different investor-related materials to look at including “Corporate and Financial News”, “Stock Information” and “SEC Fillings and Annual Reports”. When clicking on the Annual Reports options the webpage opens up with a list of old archives or KRAFT’s Annual Reports and a link to visit their “most recent edition” of the Annual Report. In order to view their report, I had to download via a PDF file to my computer. Expecting it be quite fancy looking report, due to the amount of time it took me download, I was very surprised to a plain black and white and, now no offense KRAFT, but BORING LOOKING booklet. Obviously, the report was not intended to impress any marketing/advertising savvy people here- it is simply an economical piece. KRAFT does seem to use the report as a chance to tell their story as a company, it deals solely with financial/investor information in their 233 page report. For example, some of the report consisted of different sections such as “Risk Factors, Item Proprieties, Selected Financial Data, Management Discussion, Quantitative and Qualitative Disclosures” and so on. Being a not very mathematical or investor-related Wall Street person- none of this information I found to be too thrilling, hence I merely took a glance at the packet.

KRAFT’S letter to the shareholder was located in their 2007 annual report. It opened with the feel good line, “Dear Fellow Shareholder, Welcome to the new KRAFT”. There is also a large smiling picture of the CEO and chairman Irene Rosenfeld (photos below) in color filing up the left hand side. The four page letter had a very positive tone, outlining all the various accomplishments that KRAFT made in 2007. In fact, the whole overall tone of the letter was extremely positive, instead of using an apologetic tone for more somber news, the letter organized these sections as “Addressing Challenges”- a very wise choice of words when explaining, oh not the best of news, to their “fellow” shareholders. The CEO is telling the shareholders that their biggest problem was high input costs, however the letter also went on to explain how much that have grown with that issue in 2008 so far; again, keeping that shareholder happy and confident. The letter was very easy to read and perfectly organized- the connotation and the use of graphs/charts were effective. In addition, the big smiling picture of the lovely woman CEO gave legitimacy to letter. The conclusion of the letter left that warm, fuzzy feeling in those shareholders, as the CEO is thanking them for their business and promising them of even more excellent things to come…all is well with KRAFT.

Now, the most recent news release dealing with KRAFT’s corporate earnings has been, by far, the worst thing to read through! (Yes, even worse than that awful annual report) . The release was found under their “Corporate/Financial News Releases” tab in the terrible Investor Relations webpage. I have such poor admiration for this release for various reasons, sit tight and listen: first off, it is at least 18 pages long, the first line of the release is : “Kraft Foods Inc. (NYSE: KFT) today reported 2008 results that reflected solid top-line and bottom-line results in the second year of its three-year turnaround plan” (wait…what?), and the release continued on explaining complicated things such as Net Revenues, Operating Income, Tax Rates and Earnings per Share…Now the quote from the CEO was actually put together very well, and yes, comprehensible for us financial illiterate people out there. She was positive and upbeat, however also addressed real issues by proclaiming that 2008 was a tough year due to the economic crisis, however KRAFT is working extra hard to bounce back and has high expectations for 2009.

"Driving Change, One Meal At A Time"

KRAFT is certainly showing their community support- or perhaps global support is a more appropriate term to use instead. KRAFT’s corporate website has a tab labeled “Responsibility: Corporate responsibility has always been part of who we are and what we do. Read more about how we are making a difference.” Under this tab is a link to their “Community Involvement” webpage. On this site, KRAFT summarizes how involved they are: In a nutshell, KRAFT donates food, volunteers and cash donations to support hundreds of non-profit organizations all over the world plus donates their products to where natural disasters occur. Here in the United States, KRAFT is partnered with “Feeding America” the nation’s leading hunger relief charity. The website also has a link to their “Corporate Community Involvement Report”: the report’s theme is “Change”; with the front of the cover having the quote: “Driving Change: One Meal at a Time”. The report goes on to explain where exactly KRAFT is helping out the “community”…for example KRAFT helps out non-profit organizations in AIDS-ravaged countries in Africa, and they also outline organizations they support in Venezuela, China and the USA. The report also contains a list of 46 countries where KRAFT “drives a change”, and a fact sheet containing the following 2007 number statistics:

· 100 million a year in total donation
· 29 disaster zones where KRAFT responded with humanitarian aid in 2007
· 130 cities around the world where KRAFT fights hunger and promotes healthy lifestyles
· 60,000 KRAFT employee volunteer hours
· 1.4 million per year in cash donations from KRAFT employees
· 29 disaster zones where KRAFT responded with humanitarian aid
· 1 billion servings of fresh food donated in the US since 1997

There is a very easy connection between KRAFT’s community service and their company: food. Hunger is a major world crisis and therefore is given a lot of attention, thus KRAFT’s active participation in aiding to eliminate world hunger is an excellent use of PR. By associating their name with charitable organizations such as The Red Cross and Feeding America, KRAFT is gaining positive publicity. I believe KRAFT is quite lucky to have such a strong relationship between their services and donations, they perfectly complement one another. Furthermore, natural disasters occur frequently all over the world- such as the horrible Hurricane Katrina that struck here in the USA in 2005. Although devasting, these natural disasters are opportunities for KRAFT to get involved with and gain publicity- healthy and edible foods are considered quite the luxury in places where tornadoes have torn up the land or where earthquakes have damaged a city. Let's explore how KRAFT handled Hurricane Katrina back in the fall of 2005: according to their Community Involvement report in the "Humanitarian Aid" section, KRAFT teamed up with America's Second Harvest (now known as Feeding America), The American Red Cross, Habitat for Humanity, and local food banks to total more than $1 million in cash and food donations. In addition to, KRAFT had 12 trailors that were filled with KRAFT snacks and a mobile pantry serving foods where needed. A total of 750 KRAFT volunteers from Canada and the US volunteered to rebuild homes around the area- and of course, KRAFT re-stocked these new homes' kitchen pantries with all KRAFT foods and beverages! KRAFT is a neighbor we can rely on.

A Taste for All...

According to Wikipedia, “Brand Image” refers to the psychological aspect of brands that are “a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service”(http://en.wikipedia.org/wiki/Brand_image). Having the luxury (well, some would say...) and ginormous responsibility of the being the world’s third largest food & beverage company, KRAFT foods owns A TON of food brands and therefore has A TON of consumer expectations to fill. Like I have mentioned in previous blogs, KRAFT owns many brands that we consumers have eaten in our own backyards since we were kids- such as AL’s Steak Sauce, or the infamous OREO and of course RITZ delicious crackers. KRAFT contains a lot of “classic” food brands- meaning that we are all familiar with them and have probably eaten them for years and years- Seriously who doesn’t associate cream cheese with the one and only Philadelphia Cream Cheese or Macaroni and Cheese with KRAFT'S famous blue box Macaroni & Cheese? In addition, on their corporate webpage under “Our Brands” they have in big bold letters “THE WORLD’S FAVORITE, MOST TRUSTED BRANDS” on the top of their page :http://www.kraftfoodscompany.com/Brands/
In terms of PR Campaigns, KRAFT has done some interesting PR work with food labels on their numerous products. For example, being pro-active about the healthier eating (i.e. "whole grains" & organic foods ) trends over the past few years, KRAFT has placed nutrition labels on many of their healthier brand products called Sensible Solutions; “Sensible Solution labeling on packages in North America help consumers make informed choices through easy-to-understand nutrition and serving size information” (KRAFT website). Furthermore, KRAFT has also associated themselves with providing “convenience foods” such as my last blog’s entry about their new product, Bagel-fuls. Again, on their corporate webpage they have a section devoted to “Quick Meals” in which they list their Quick Meal brands- at the top of the page in big bold letters are: “Smaller Families, Working Parents Need Truly Delicious, Quick Meals”; http://www.kraftfoodscompany.com/Brands/quickmeals/ The site goes on to explain that KRAFT understands the busy lives of their consumers thus they have created food products that are conducive to the consumer’s busy life schedule; but of course they are still providing “truly delicious meals” (KRAFT website) despite the fact they can be made in 2 minutes by popping them in the microwave- such as the highly popular (and praised by college students) “EasyMac”. Are you a picky eater that does not crave those microwave meals and like real, authentic food? I am- thank God KRAFT also feature a “Premium “ brand of foods. On their website, KRAFT has another section devoted to their “Premium” brands, with big bold letters on the top of the page: “Restaurant Quality On-the-Go or at Home”;http://www.kraftfoodscompany.com/Brands/premium/. Some of the featured brands include DiGiorno Pizza (which, come on we all know the stupid commercials with the slogan: “It’s not delivery it’s DiGiorno!) and Tassimo luxury coffees.

With a variety of different food brands, KRAFT markets themselves as a company for everyone. It is appropriate to suggest that KRAFT is trying to convey that they have a diverse range of products that would appeal to everyone- even the pickiest of eaters and consumers. They contain food products for busy families on the go, they have the “Sensible Solutions” for people choosing to be health conscious, they have a “Premium” brand of foods for their more picky consumers- and most importantly, they provide the “Brands you know and trust”. I sure do. Honestly, when I see a KRAFT product on the shelves while grocery shopping- I do not think twice about it's validity for human consumption- I trust KRAFT, have seen their food products displayed since I was young, and at 21 years-old they have yet to let me down...plus what girl would ever turn down OREO or CHIPS AHOY cookies when they were upset? Not me.

Excuse me, would you like a sample?

Remember how we discussed in previous blogs that KRAFT products mainly sell convenient foods? In that they are quick and easy to prepare to eat- now call me an old fashioned girl- but some of these new convenience foods on the market today do not seem too appetizing. Such as those “Hungry Man” ready to eat microwaveable dinners- yuck! Now, no offense to all you Lean Cuisine lovers (i.e. my roommates)- but a frozen “Shrimp & Angel Hair Pasta” dinner that I have to heat up in the microwave after being in my freezer for God knows how long is not my meal of choice. I would much prefer to cook my OWN seafood, thank you very much. According to several studies over the years, these frozen dinner meals are loaded with crazy high amounts of fat and sodium content, plus preservatives to keep the food (at least, to be appearing) fresh. Check out an article in women’s health: http://www.womenshealthmag.com/nutrition/frozen-food-meals However, due to our fast-paced style of living in the good old US of A, convenience foods are quite popular amongst the working generations. Perhaps we do not have to purchase our breakfast, lunches and dinners all in frozen microwaveable meals, but a few convenience items are an exception. For instance, take KRAFT’s new “Bagel-fuls”. According to KRAFT’s press release, a “Bagel-ful” is a bagel with cream cheese rolled into one; http://www.kraftfoodscompany.com/MediaCenter/country-press-releases/us/2008/us_pr_04092008.htmtry-press-releases/us/2008/us_pr_04092008.htm. A highly convenient breakfast food, this “bagel” can be popped in the microwave or toaster oven and ready to be taken on the road in a matter of seconds. Hm, that even sounds good to me…

So how did KRAFT publicize their new product? In April 2008 KRAFT foods launched their “sampling” tour with introducing the “Bagel-fuls”. It is only appropriate that they launched their tour in the bagel capital of the world- New York City. A popular bagel café right near Times Square-the Bagel & Bean cafe, was transformed into a Bagel-Ful café on April 9, 2008. KRAFT got a hold of celebrity Joy Behar (pictured at event on below right), co-host of ABC’s “The View”, to serve the Bagel-fuls at the café. According to KRAFT’s release on the event, the “Morning commuters will be pleasantly surprised when they come face-to-face with Joy’s wit, wisdom, and a warm, golden Bagel-fuls sample”. So how did the busy new Yorkers know about the event? Well I googled the new Bagel-ful item several times- and nothing came up on any large circulation news papers, or over even on smaller New York City papers/magazines. But- what I did find was their release on prnewswire.com, allbusiness.com and promomagazine.com. Allbusiness.com said that KRAFT informed New Yorkers with “bagel carts and walking billboards”. Also local TV stations interviewed some consumers at the café. I also looked up the event on Automatic Merchandiser (amonline.com), in which they said the event was very organized and resulted in providing hundreds of New Yorkers with free samples.

According to promagazine.com, Kraft’s major hook with this new product is providing samples of the new Bagel-fuls across several different US cities: http://promomagazine.com/sampling/news/kraft_promotes_bagel-fuls_sampling_tour_0409/. This sampling campaign included a 20-city sampling tour during the 2008 summer season. Eventmarker.com said that KRAFT’s sampling campaign was supported by national TV ads, regional radio promotions and in-store sampling events. I found the commercial on YouTube: http://www.youtube.com/watch?v=Gjb_A8A6F3I&feature=PlayList&p=3AD35FC1BFF33B80&index=0&playnext=1 Furthermore, street teams, branded pushcarts and branded trucks stormed the various cities that were on KRAFT’s sampling campaign itinerary. Basil Maglan, KRAFT’s spokesperson, said, “We feel Bagel-fuls will appeal to the on-the-go consumers so we want to reach those consumers where they are in high traffic areas”.

KRAFT got it right. I believe their sampling campaign is a very effective way to promote a new food product. Seriously- who would pass up on a free food sample? Launching the campaign in NYC, the bagel capital of the world, was a great idea- plus getting a celebrity to endorse the product could not have hurt it. Also, I really liked the method in which they used to give away the samples on the streets in the cities, by dispensing the product away as people are literally on the go- thus it being a convenience food- people can walk and eat them on their way to work. To be honest, I think KRAFT did an excellent job promoting these bagels. The sampling campaign is an innovative and interactive way to promote a product, and seems quite appropriate for a food product. If I was KRAFT's PR person, I would have employed the same techniques. In terms of their launching event in NYC, as a PR person, I do not think I would send out releases to NYC newspapers or magazines. Manhattan is busy enough as it is- with tons and tons of people walking to work- thus they were bound to attract a large number of people into their coffee shop for a free tasting. If the event was publicized to a NYC print media resource (which, it very well could have been- but I did not find it online), perhaps it would have been too hetic and thus turn people away.

What's on Kraft's Website?

Many websites today are becoming so incredibly high-tech that I do not even understand what they are trying to promote to their viewers. I believe these new internet tools are becoming very competitive between websites; which one is proving to be more enjoyable for its’ viewers? Entertaining websites will certainly yield positive results for whatever their website is promoting. I mean, Nike.com now allows for their customers to create their own shoes to purchase from their website: http://store.nike.com/index.jsp?sitesrc=uslp&country=US&lang_locale=en_US#l=shop,pwp,c-1+100701/hf-12001+40001/t-NIKEiD_Shoes&lang_locale=en_US#l=shop,pwp,c-1+100701/hf-12001+40001/t-NIKEiD_Shoes. The customer can choose the style, size, color, etc., of what shoe they want. How cool is that? Three of my friends have already ordered a pair from them! From interactive games and videos- there are numerous ways to disseminate information to people on the internet. The last thing people want when browsing the web is a boring webpage where, God forbid, they can only read to get information. Now days, the viewer can choose to watch videos, play games or simply listen (via podcasts) to the information that is being provided by the website. I'll admit it: when I'm looking up my sport teams information I don't want to read boring articles, I want to see video coverage and I want to hear other people commentaries on the game. Now a sports website may have more opportunities to be more interactive than a basic newspaper webpage; however it is important to draw people to your website and keep them there. With that in mind, I wondered how a food company website could promote its product while keeping their viewers engaged...


KRAFT's website was quite interesting: When first typing in the address on the tool bar, KRAFT's website appears, but it gives you 3 different website to enter: KRAFT Foods, KRAFT Corporation and KRAFT charity.

Assuming that the company’s website would be boring, KRAFT’s corporate site turned out to be bearable; http://www.kraft.com/default.htm What first captured my eyes was the large picture with a KRAFT slogan that changed every few seconds. Also, on the lower ride side is an interactive pop-up display where you can click to see all the different brands KRAFT owns...my eyes were naturally drawn to it because it automatically rotates every 2 seconds or so. On the left side is a "Latest Corporation News" with links to their newest press releases http://phx.corporate-ir.net/phoenix.zhtml?c=129070&p=irol-newsArticle&ID=1255460D=1255460 . The site map on top of the webpage clearly organizes the site into "Home", "About Kraft", "Brands", "Investor Center", "Media Center" and "Careers". Under the "Brands" section is an interactive video of the company's history; it is displayed in a timeline format that allows the viewer to choose how fast or slow they want to browse through it. However, the video does not have a sound display- which proves pointless for the hearing impaired or ones that simply don't want to watch it. There is also a concise fact sheet located below the video for those who need basic information. On the right side is the same interactive pop-up display that shows the different KRAFT brands, actually after viewing the entire site I realized the icon was on every page. Under their brands site was an icon to play KRAFT TV commercials http://www.kraft.com/tv-commercials.htm . What I found neat was how they featured their employees under the "Careers" section, a few key employees with their pictures and basic job information was featured. I think being able to see some of KRAFT's employees what their job duties entail gives more legitimacy to their company, from a consumer perspective. http://www.kraft.com/Careers/


Now, KraftFoods.com is MUCH more interactive (and I think more interesting) compared to KRAFT's corporate site. The site includes various interactive tools: such as "How-To" (recipe) videos, ingredient/recipe finders http://www.kraftfoods.com/KF/DINNER/DinnerLandingPage.aspx, and various healthy living tools: such as a BMI calculator, nutrition advice and even an icon to create your own recipe cook book! http://www.kraftfoods.com/kf/HealthyLiving/HealthyLivingLandingPage.aspxe.aspx. The site also had a link to their new digital Food & Family magazine, available on their website now (instead of it being sent via slug mail). Throughout navigating the site I also joined the KRAFT community and therefore am now able to participate in their member discussion board (such as sharing recipes) and will receive weekly e-mails about new company information. In addition, the site includes information on how to obtain recipes using 6 different communication sources, including: e-mail, Widget, RSS fees, Mobile, iTunes and iPod; covering nearly every media outlet.


It surprised me that KRAFT did not provide a virtual tour of one of their product's factories. Being that people are interested in the behind the scenes process of food production (thus the high ratings for Food Network's "Unwrapped" show), this would provide an ideal opportunity for KRAFT to take advantage of. I think their corporate site could have been more entertaining, but it is CORPORATE and therefore more professional and “business” themed. However, I think Kraftfoods.com did an excellent job with their website; I spent over an hour looking at it! From kids, to stay at homes parents or even busy work parents, the site provides ample gadgets to work around with.

Let's Start Eating...

Throughout the next few months, I will be blogging about the Fortune 500 company, KRAFT Foods. My goal is to be able to gain a better understanding of how this HUGE company displays itself to the public. I think it will be both interesting and informative to observe this company's publicity tactics. In terms of what audience (s) they are targeting, what advertisements they use, how they handle crisis maters (if any come up), what their website entails, and so on- there are numerous resources to explore! Let's see what kind of appetite KRAFT stirs up in me...

So why KRAFT Foods? Well, deep down there is a part of me that wants to drop out of college and enroll in culinary school. Not only do I love to cook, but I just I love and am genuinely interested in food. From its wonderful fragrance, taste and comforting effects- food just makes me feel good, to put it bluntly. I want to get into a field of PR that I truly am passionate about, which happens to be food (well, for right now). KRAFT is an ideal company for me to follow; not only is it massive (and therefore a naturally intruiging company), but (according to Wikipedia) http://en.wikipedia.org/wiki/Kraft_Foods it is the 2nd largest food and beverage company in the United States, and the 3rd largest in the world! Although my company is not exactly the Food Network (which I would love to work for some day) or a restaurant chain like Chili's, it is in the food industry and thus related to my passion: food.

According to their corporate site, KRAFT is all about helping people around the world "eat and live better" by providing "the best-know brands among the globe" http://www.kraft.com/About/ . Even at the very top of their corporate website is a picture of children (note: a very ethnically diverse display of children) smiling and holding KoolAid juice boxes, see above. Futhermore, on Kraft.com the viewer can either choose to enter their recipe site, corporate site, or charitable donation site. Thus KRAFT is showing they are involved in the community, like the Starbucks and Target companies, by making charitible causes to needy organizations- as a result, we the customers, feel even better about purchasing their products.

KRAFT owns several different brands that we are familiar with. Come on, who doesn't love Philadelphia Cream Cheese on their bagel in the morning or those sinfully delicious OREO cookies? (actually they claim to be American's favorite cookie) They are all brands that Americans are familiar with. What I believe is their "catch"; or what makes them unique, is quite simply, their products. Under the "Who We Are" section on their website, KRAFT defines themselves as providing their products to "People who want truly delicious foods that fit the way they live" http://www.kraft.com/About/who-we-are/. These various products, like Oscar Mayer, Maxwell Coffee or those "To Go!" Ritz Crackers (above) are convenience foods, in other words, they are practical food choices for the busy family, which in the United States, is key. KRAFT markets these brands as being brands that "consumers know and trust" http://www.kraft.com/About/who-we-are/-we-are/. However, what makes us trust a brand? For me, one factor in trusting a product is how long that brand has been around. For example, I never hesitate to buy Heinz ketchup (not a KRAFT brand)- the product has been around forever, it was my grandfather's favorite condiment as a child and to this day, and is also a favorite condiment for millions of people. Therefore I trust that I am buying a quality food product with Heinz Ketchup. KRAFT Foods "business" is about providing well-known, quality food brands to their consumers.

Now, it is interesting to explore this company's reputation. Being that the company is in food services and obvoiusly their consumers physically consume their products- KRAFT's "bottoms" (for lack of a more vulgar term) are on the line. I mean, think about how much scrutiny the peanut butter distribution companies are under due to the current salmonella scare. When it comes to a person's physical well-beings and health, people and/or the consumers will be very concerned about what food they are eating. Evidently, KRAFT understands this. For example, according to a November 2008 poll on FoodProcessing.com, KRAFT Foods ranked number 7 on the world's "Most Reputable Companies" http://www.foodprocessing.com/industrynews/2008/098.html . In addition, KRAFT earned the number 1 position on the Reputation Institute's "Corporate Reputations of Largest U.S. Food Companies"http://reputationinstitute.com/events/US_Food_Industry_Results-Global_Pulse_08.pdfdf.

There were barely any issues I found online about KRAFT's reputation; however I managed to find one. According to an article on NationMaster.com, in 1992 a KRAFT's Atlantic Gelatin Plant, located in Woburn, Mass., (which supplies Jell-O) "came under scrutiny for a history of noxious smells, toxic waste releases into Boston Harbor, and a policy of corporate secrecy" http://www.nationmaster.com/encyclopedia/Kraft-Foods. In 1993, the plant was fined $250,000 for violating the Clear Air Act of 1970.

So far, KRAFT seems to really be a trusting company. For example, on their main website, on the very top of the page there is a link to the current peanut butter crisis (in which KRAFT states that none of their products have been re-called), and there is even a consumer alert link on the top as well that people can click on: http://www.kraftfoods.com/kf/Pages/home.aspx. By being this pro-active about the current peanut butter situation, KRAFT is being both positive and smart about the peanut butter crisis by making sure the news is accessible for all to see. They are showing consumers that the peanut butter dilemma is one of their top priorities, and thus the well-being of their consumer is also their top priority. As a consumer, it feels good knowing that KRAFT not only understands the peanut butter situation, but they are also encouraging their webpage visitors to find out more information about it. As a result, from a consumer perspective, I feel more confident buying their product.
Take at look at the advertisment KRAFT put in the Strait Times, a large circulation newspaper in Singapore, about milk products from china back in September 2008:Does is make you feel confident about purchasing oreos? It does for me.

I would imagine that the challenges PR people might have at KRAFT would have to with food crisis, like the peanut butter re-call. Since food can get contaminated- like the peanut butter and a few years ago the spinach epidemic, it will freak people out and cause them not to buy the food also. Also issues, like nutrition such as how much fat a products contains, would turn people off from buying KRAFT's products. Like I mentioned previously, since KRAFT is selling products that are consumed by human's and could therefore effect a human's well-being, any issue that would cause the consumer to think that a KRAFT product is negatively affecting their health would cause an issue. It would be a challenge to alert the consumer public on product information and also to maintain positive public attitude on the product.